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how to open a restaurant in India

How to Open a Restaurant in India – Complete Guide for 2022

Last updated on: October 7, 2022 by Mani Karthik

So you want to open a restaurant, but not sure where to start. Worry not. Here’s your guide on how to open a restaurant in India, easily.

Before the pandemic, the restaurant business was one of the best go-to options for Indian entrepreneurs and business owners. From roadside stalls to Michelin star restaurants, Indian business owners served the food-loving population and made fortunes for themselves. As a result, the restaurant business became one of the biggest service sectors in India, dwarfing the film industry by 20 times.

Now things have changed for the worse. People stopped eating out. Experts predict the revenue will plunge by as much as 40-50% . Starting a restaurant business in the middle of a pandemic sounds like a bad idea.

But all hopes are not lost.

Business owners have already started to find new ways to stay profitable. Restaurants are now focusing on online sales and takeaways. According to yelp, in the last quarter(Q4) of 2020, the number of restaurants opened has surpassed 2019 Q4.

In other words, the pandemic shifted the basic rules of the restaurant business. Just adopt the change and you can stay profitable.

Wondering how to adopt these changes and start your restaurant business in India? Well, this guide is for you.

1. Decide on the type of the restaurant

2. evaluate the cost, 3. get funding, 4. licenses required to open a restaurant in india, 5. hire your staff, 6. work on your menu, 7. take care of your delivery process, 8. marketing, 2. customer service, 3. marketing, how to open a restaurant in india.

Before you secure funds, talk to advisors (or even lift your fingers), you should ask “ What would be the service style of my restaurant? “. The answer will affect all the subsequent steps as well as your business itself.

Depending on your vision and fundings you can go for any of the following types:

  • Casual dining restaurants
  • Fine Dining restaurants.
  • Food carts/ tracks.

types of restaurant

Next comes the concept. Local, heritage food, continental , chef’s special – successful restaurant businesses tend to take inspiration from local food pallets and preferences. Even popular culture, art and sports can be sources of inspiration.

Once you decide on your service style and concept, think about interior design and menu. Your service style, concept, menu and design- all four should be congruent. For example, there should not be any old movie posters on the wall in a very traditional South Indian dining restaurant. However, that poster can easily fit in if you have a Bollywood themed cafe.

Also to achieve growth during Covid-19, your interior design plans should take practises like social distancing into account. That means on-premise customer journey should involve a minimum number of face-to-face interactions. The sitting arrangement also must allow at least 2 meters of the distance between the tables.

However, you can almost totally skip this crucial stage if you start a dark kitchen. Dark kitchens are online-only restaurants with no establishment. This is basically a fancy term for some passionate cooks preparing meals in a kitchen and selling online.

Opening a dark kitchen is a nice option as the set up cost is way too low and people now prefer to order online.

Like any business, the restaurant business involves some cost. Before you jumpstart your business, having a good idea of both operational and set up costs is a good idea.

Irrespective of the type of your business you have to bear costs like:

Food cost: This is no brainer. You need ingredients to prepare food. Ideally, your food cost should be in a ballpark of 30% of your item price. Connect with some well-reputed suppliers to lower the cost and ensure a constant supply of food materials.

Labour cost: You need to pay your workforce to run a business, right? Well, labour cost makes up a huge chunk of your total expenses. The rule of the thumbs here, more skilled or specialized teams would cost you more. Consider your offerings before hiring. If you are running a fine dining restaurant, you need chefs with years of experience. If it’s a street-side restaurant, you still need competent staff but may not be the cream of the crop. More on hiring staff will be discussed later in this article.

Rent: When you are renting a place, calculate your operational cost including rent. The closer you are to a busy part of the city, the higher the rent will be.

Equipment: Purchasing the right equipment and regular maintenance swells up your total cost.

Licenses and legal permissions: To run a business in India you need Govt permission and licenses (trade license and FSSAI ). These are not free and renewals

Marketing: The restaurant business is quite competitive and customer loyalty isn’t easy to earn. You need a decent marketing budget to stay ahead of competitors.

Starting your restaurant business is a costly affair. According to some real owners, the setup cost of a decent size restaurant can go anywhere from 15 lakh to 1.6 crores depending on the location, menu and other factors.

To collect a hefty sum like that, use any of the following(or try multiple at once) methods:

Self-funding: If you can invest out of your pocket then you are in luck. You just skipped one of the biggest hurdles without much headache. For the most, this isn’t the case. There are other ways to collect the funds thankfully.

Loan: Many banks offer loans to future business owners and entrepreneurs. The process involves a lot of paperwork and they do look for collateral.

Funding from investors: Investors occasionally fund restaurant businesses. When you have a track record of running successful businesses, it’s easier to get their money. However, investors are really cautious about their investments. Expect a lot of questions and a certain extent of loss of freedom if you walk on this path.

Crowdfunding : Crowdfunding platforms are great if you have a great story. Many restaurants with interesting themes or stories( example ) successfully collected lakhs of money from platforms like Kickstarter, Impactguru and Crowdfunder.

To run your business smoothly and legally you need to have licenses and pay taxes. Yes, it’s a lot of paperwork. But you can get your licenses easily if you know where and how to apply.

FSSAI License

For any kind of restaurant business in India, including dark kitchens, the FSSAI license should be the first license to obtain. Having a FSSAI license means your business meets Govt’s food safety standards.

There are three types of FSSAI licenses:

  • FSSAI registration: For very small food businesses with less than 12 Lakh turnover annually.
  • State registration: For small restaurants to midsize restaurants with annual turnover between 12 lakh to 20 crores.
  • Central License: For large restaurants and food chains with more than 20 crores annual

You can apply for it on the Foscos portal with Form A or Form B along with other self attested documents.

Health/Trade License

You can get a health/trade license from local municipal authorities or the health department. It would cost you around INR 500- 50000 depending on your state rule and other factors. Usually, you have to wait for a maximum of 60 days after the form submission. Municipal corporations can shut down restaurants if you don’t have/renew your license. In other words, don’t forget to renew your license every year.

Eating House License

According to Indian law, any place that offers food and beverages for public consumption is an eating house. Since restaurant businesses of all sizes are eating houses by definition, they must have an eating house license.

How can you get it? – Start by registering yourself on the official website of the state police. Submit your documents next. At the last stage, you have to visit the Additional Commissioner of police for the verification of your application.

Fire Department NOC

A NOC ( no-objection certificate) from the fire department is a must for any food business. This ensures said food business doesn’t cut corners on the matters of fire safety.

This certificate costs nothing.

All you need to do is register on the state fire department website and submit documents. Once you set up your fire security measures, the dept will provide NOC after inspection.

Like all businesses (with a turnover of more than 20 lakhs) you need to obtain GST registration as per the rules of the Govt of India.

You can easily register your restaurant for GST online . Usually, it gets sanctioned within 5-7 days without much paperwork.

Apart from these licenses, depending on your business, you may want to apply for other licenses like a liquor license, lift clearance, music licence etc.

The restaurant business is a part of the service industry. Like any other service-based business, your success depends on your staff and customer service.

However, the grim reality is 41% of restaurant owners in India struggle to hire the right candidates. Fortunately, you can make it easier for yourself with proper planning:

Start your hiring by having a clear idea about which roles you want to hire for. Most businesses should hire for these roles:

Restaurant manager: Your restaurant manager will oversee daily operations, resolve conflicts and ensure your business operates smoothly. This person will be the most important individual. The ideal candidate should have at least some experience of managing restaurant staff.

Cooks/chefs: In your business, food is the star of the show, period. And your chefs/ cooks are the ones who make your customers fall in love with your menu. A good cook, like an artist, adds his/her own twist to the recipe and makes your items lip-smacking good. Be it a high-end restaurant or a food stall, your chefs/cooks should be passionate, competent and good team players.

Serving/delivery staff: Your customers will have the most interactions with your serving/ delivery staff. You need someone who can work under pressure, courteous and professional.

How to hire?

There are several ways you can attract the right candidates. For the starter, good old newspaper ads with detailed job descriptions work well.

You also have social media. Feel free to post your requirements on food lovers groups and job seekers communities. Be upfront about your expectations and job benefits. You can even run a social media campaign.

Another great way to spot great candidates is through referral. If you know someone who is working in this business, ask for referrals. There is always an ex-colleague or friend who can take up the mantle.

Sometimes hiring an agency works wonders. They can find well-matched talents from their wide network and send them for interviews.

Your main product is your food. It can make or break your business. That’s why you should carefully design your menu.

Start by considering your customer’s preferences. Are they in love with local cuisine? Then introduce popular dishes and add a local twist to popular foreign dishes.

Are your customers open to experimenting with exotic food? Give lesser-known international dishes a chance.

Also, there is a huge scope for unleashing your creative soul. Talk to your cooks and come up with fusion dishes. Experiment with food presentation.

In a nutshell, finalize your menu by combining both customer preference and creativity.

A great food delivery service was always a crucial component of a restaurant business success. However, after the covid-19 outbreak customer preference has swung towards online delivery even further. No wonder companies like Zomato and Swiggy experienced massive growth in 2020 even after almost a year-long lockdown.

If you want to succeed in this “new normal” you need to upgrade your whole delivery system.

Plan your delivery strategy: A robust delivery process starts from a well-thought plan. Which items you want to deliver is the first thing you want to figure out. Some food items may get spoiled or start smelling bad relatively faster. Those should be taken off from the delivery menu.

The area you want to cover is also important. Too far away and you will run into the risk of making zero profit. Say yes only if the price covers all of your expenses and earn you at least some profit.

Hire your delivery team: Getting your own delivery team is a great option. You will have total control over who is delivering your food, how and when. Unlike other delivery services where you have to pay based on your sales, you pay your team a fixed salary.

Hiring a delivery team is pretty straightforward. Put advertisements on paper and post your requirements on social media. Don’t forget to do a background check before handing out appointment letters though.

Partner with delivery services: Most restaurant businesses can not afford a decent sized delivery team, at least at the beginning. Teaming up with a delivery service provider can work for them pretty well.

Swiggy and Zomato are the most well-known options out there. However, in our opinion, there is a big downside. Both of these companies charge up to 25% on every sale you make. Deductions of a large amount like that per sale do more harm than good , especially in these hard times. Even FRAHI had to appeal to both Swiggy and Zomato to cut their commission.

swiggy and zomato charge up to 25% on sale

The barrier of entry in the restaurant business is low. Anyone can start his/her business anywhere. This makes the restaurant business very competitive.

It’s crucial to stay on your customers radars. And you need a solid online marketing strategy, more than ever, to accomplish that. No matter even if you are located in a metro city or tier 2 & 3 cities.

Because people are less likely to go out right now. And more importantly, India has 622M internet users and 77% of them are from tier 2 cities.

Your online marketing starts from having an online presence. You can hire developers and build a site for your business. However, it comes with a hefty price tag and you need to find competent developers first.

Alternatively, you can take an easier route- use the Dukaan app. With Dukaan, you can set up a website where your users can place orders, track orders and pay using secured payment gateways. And you can do it all by yourself. No prior technical knowledge is required.

business tools at Dukaan

Once you set up your website, start marketing your business.

Social Media Marketing: Social media is a great place to start your marketing. These platforms allow you to spot your potential customers and then target them through advertisement.

Creating a business page on your social media of choice is the first step. Just add your bio, fill up your business location and other details and start posting cool photos of food or maybe your restaurant. Be constant with your posts. Then you can move on to SMM advertisements for better reach and more sales.

Facebook and Instagram are the two best platforms for marketing restaurants. We have a solid guide on how to do a great job with your Facebook ads . Once you have a grip on the basics of social media marketing, you can plan creative campaigns with specific goals/ occasions in your mind.

Google Adwords: Google can be a great online traffic source for your business. First, you want to optimize your pages and product descriptions based on your targeted keywords. This is basic SEO 101.

Next comes Google Adwords.

In case you don’t know how Adwords results look, here is an example. All search results with the prefix “ad” are Adwords results.

Google Adwords

To start your Adwords campaign, list several keywords that your customers may use to find and order food. Then start an adword campaign based on those keywords. Your business will be on the top of the search results.

Usually, you get a great ROI from Adwords. The reason is, if your customers find you by using a high purchase intent keyword ( ex: biryani centres in Kolkata) you will make some sales.

Influencer marketing: There are some influencers with large audiences. Their followers engage with the influencers regularly and trust their opinion. What if you could get some of them to promote your restaurant before their audience? Well, this type of marketing has a name: influencer marketing .

According to 71% of marketers the quality of traffic from influencer marketing is better than other sources.

The concept of influencers marketing is easy. Just find some influencers who are popular among your targeted customers. Then hire them to upload sponsored posts and videos.

Apart from these marketing channels, you can utilize giveaways, webinars and traditional methods like flyers.

Key Elements of a Successful Restaurant

The success of your restaurant depends on doing a few things well.

The biggest driver of restaurant business success is a menu that makes customers’ mouths water. Tasty foods with a unique touch, presentation and hygiene- these are things that keep your customers hooked.

Nothing converts one time visitors into regulars better than great customer service. After a positive experience, customers even spread the word sometimes.

Therefore, you want to focus on offering amazing customer service. Your staff play a vital role here. Courteous and professional service staffs are no less than assets.

A well-planned marketing strategy separates your business from others. When you run creative ads, customers take a note and remember your business every time they want to order anything.

No one likes to pay for poor services. At the same time, if the price is too good to be true, skepticism lurks in the customer’s mind. Successful businesses walk the fine line by striking a balance. Their customers feel that they got what they paid for.

The ambience of your restaurant has a direct effect on your customer experience. More so, if you are running a themed restaurant or cafe. By just maintaining your establishment spotless and well organized you can win some major customer experience points.

key factors for restaurant business

There you have it, a complete guide on how to open a restaurant business in India. The restaurant business was always one of the most profitable ones. Due to the covid-19, things have changed a lot. But that doesn’t mean you can’t be profitable. Just mind the new changes, pace with new reality and you will be successful.

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How to Build a Business Plan for Restaurant in India : A Checklist

What is a business plan.

A business plan is a document that sets out the business goals of a company and how these will be achieved. It contains financial forecasts, information on the company's products, services, markets, and management team. A business plan is essential for any business, providing a roadmap for growth and development. It should be regularly updated as the business grows and evolves.

A business plan is not just for start-ups but also an important tool for established businesses looking to expand or change their operations. By setting out clearly-defined goals and objectives, a business plan can help business owners to stay focused and on track. A restaurant business plan can also be used to secure funding from investors or lenders, providing them with an overview of the business and its growth potential.

Looking to start a restaurant business? Make the process easier by registering with Amazon Business.

What is a Business Plan for Restaurant?

No matter what kind of restaurant you're opening, a business plan is essential. This document will lay out your goals, strategies, and financial projections and serve as a roadmap for the first few years of operation. Even if you have extensive experience in the industry, a business plan for restaurant is still a valuable exercise.

A business plan for restaurant forces you to think carefully about your concept, target market, competition, and financial needs. By taking the time to create a restaurant business plan from scratch, you'll be in a much better position to get your hotel business off the ground successfully.

Why is a Business Plan for Restaurant Important?

A business plan for restaurant is important for the following reasons:

  • It ensures the restaurant is well-organized and has a clear vision
  • It's beneficial to attract investors and secure funding
  • It can provide a roadmap for the restaurant's future, helping to keep it on track as it grows. By taking the time to create a business plan, restaurant owners can set their businesses up for success.

Without a business plan for restaurant, it's all too easy to make careless decisions that jeopardize your restaurant's future. So, if you're serious about making your restaurant a success, take the time to create a comprehensive business plan.

How to Write a Business Plan for Restaurant?

Writing a business plan for restaurant can seem daunting, but taking it one step at a time doesn't have to be overwhelming. Here's a basic workflow behind writing a business plan for restaurant:

  • Start by doing some market research and outlining your concept.
  • Then, flesh out your business model and put together a marketing plan.
  • Finally, create financial projections for your first few years in business. This is important in a business plan for restaurant as it conveys your forecasts for future growth.

If you put in the work upfront, you'll be well on your way to opening a successful restaurant. As a bonus, we have added a business plan for restaurant example in this article. Keep on reading to find out how.

Before that, let's get started with a few tips for writing a successful business plan for restaurant:

How to Write a Business Plan for Restaurant?

Do your research

Before you start writing, take the time to research the restaurant industry to help you better understand the challenges you'll face and the opportunities you can capitalize on. Good research can ensure that you get the best business plan for restaurant.

Know your audience

When writing your business plan for restaurant, be sure to tailor it to your reader. If you're seeking investment, focus on how your restaurant will generate revenue. For potential employees, highlight your management style and company culture in your business plan for restaurant.

Be realistic

A business plan for restaurant is not the place to inflate sales projections or overestimate market share. Instead, focus on achievable goals that will help your restaurant succeed in the long run.

Get organized

A well-organized business plan for restaurant is essential for making a good impression on potential investors or partners. Use clear headings and stylish graphics to keep your reader engaged from start to finish.

Keep it concise

A business plan for restaurant should be no more than 30 pages long, so make sure to include only the most important information about your restaurant's concept and operations.

By following these tips, you can write a successful business plan for restaurant that will help you launch a successful restaurant venture.

Components of a Business Plan for Restaurant

Components of a Business Plan for Restaurant

Let's look into the different components of a well-crafted business plan for restaurant.

Executive Summary

The executive summary is one of the most important parts of a business plan for restaurant. It provides a brief business overview, including its goals, products and services, target market, and financial projections.

The executive summary should be clear and concise, giving readers a good sense of what the business is all about. Given the importance of the executive summary, restaurant owners should craft a well-written and effective synopsis of their business to make the best impression of their business plan for restaurant stakeholders.

Company Description

A company description is an essential element of a business plan for restaurant. It overviews the business, including its history, philosophy, and goals. It also describes the company's ownership structure, management team, and business model.

The company description should be short and to the point, conveying the most important information about the business in a concise and engaging way. By providing readers with a clear understanding of the restaurant's mission and value proposition, the company description sets the stage for the rest of the business plan for restaurant.

For e.g., if you are creating a business plan for cafe, then chalk out a company description that goes out well with cafe goers.

Market Analysis

Market analysis involves researching the local market to understand the needs and wants of potential customers. This research can determine the most effective marketing strategies and target specific demographics.

Additionally, market analysis can help to identify potential competitors and understand their strengths and weaknesses. By understanding the local market and its potential customers, restaurateurs can create a business plan for restaurants that will maximize their chances of success.

If you are gearing up on a fast-food business plan, research well out on the competitor and understand the market trends. A well-researched fast food business plan can win out any potential investor.

The menu section of a business plan for restaurant outlines the specific dishes and meals that your restaurant will serve. It includes a description of the dishes, ingredients, price, and target market. Additionally, you'll need to determine how often you change your menu and whether you'll offer seasonal or speciality items.

Creating a well-thought-out menu is essential for any business plan for restaurant. The menu is one of the first things customers will see when they visit your restaurant. By taking the time to create a mouth-watering menu, you'll be sure to attract new business and keep your existing customers coming back for more.

The employee section in the business plan for restaurant details the hiring process, training programs, and policies for your employees. This allows you to go into detail about how you will find the right staff for your business, what type of training they will receive and what your expectations are.

Having an employee section in your business plan for restaurant shows you have thought about the people who will be working for you and how they will contribute to your business's success, further depicting you have carefully considered all aspects of starting and running your business.

Restaurant Design

When deciding on the layout for your restaurant, it's important to consider how you want customers to flow through the space. Whether creating a fast food business plan or a contemporary dining space, the restaurant's layout plays a heavy role.

In a business plan for restaurant, the layout maps out these details so that you can make informed decisions about your restaurant's design. Here are a few elements to consider while designing your restaurant layout:

  • The flow of customer traffic. Design a space that allows a smooth flow of customers from the entrance to the seating area to the restrooms and back out again.
  • Consider how it will impact food preparation. Will servers need to walk through the kitchen to place orders? Will customers be able to see into the kitchen?
  • Visualize how you want customers to interact with staff . Do you want a more formal dining experience or a more casual atmosphere?

The location section of a business plan for restaurant is one of the most important parts of the document. After all, the location of a restaurant can be the difference between success and failure. When choosing a location, many factors exist, including foot traffic, competition, and demographics.

The location section of a business plan for restaurant should address these factors and more, giving potential investors an idea of where the restaurant will be located and why it is a good choice. Additionally, the section should include information on lease or purchase of the property or any necessary renovations.

With a well-crafted location section, a business plan for restaurant can give investors the confidence they need to invest in a new business. Such a business plan for opening a restaurant will get funding from the targeted customers.

Market Overview

The market overview section of a business plan for restaurant provides a detailed analysis of the current state of the restaurant industry with a projection of future trends. The market overview should include the following:

  • Details on the target market, competitors, and marketing strategies.
  • An analysis of the economic conditions that will impact the business.
  • The market overview in the business plan for restaurants for investors to understand the opportunities and risks associated with investing in a restaurant business.

Without a thorough understanding of the current and future state of the industry, it would be difficult to make informed investment decisions.

The marketing section of a business plan for restaurant outlines how you will promote and sell your services.

Your marketing strategy should be detailed, including the following:

  • Advertising, public relations, and social media plans.
  • Analysis of your target market and restaurant's unique selling proposition
  • A sales forecast outlining your expected sales for the first year of business is also desirable.

A comprehensive marketing plan ensures your restaurant business plan is well-positioned for success.

Financial Analysis

Any business owner knows that continual financial analysis is a key part of successful business management. You can show the stakeholders the projected revenue and expenditures by conducting a financial analysis during the early phases. We recommend hiring a top accounting professional to conduct the analysis and craft a well-thought-out analysis section of the restaurant business plan.

Things To Buy When Opening A Restaurant

Make use of this opening a restaurant checklist to ensure that you have all the essentials in place for smooth running. Buy all the essentials and get your restaurant business ready to go by registering with Amazon Business.

Ovens are essential equipment in any restaurant kitchen for many reasons. Perhaps most importantly, they provide a consistent and controlled cooking environment essential for cooking food evenly and safely.

Ovens also offer a wide range of cooking options, from baking, roasting to broiling and grilling, making them incredibly versatile. They can be used to cook large quantities of food at once, making them perfect for busy restaurants that need to churn out large meals quickly.

Whether cooking a roast chicken or a batch of cookies, an oven is an indispensable tool for any chef.

Oven

A mixer is one of the most important equipment in a restaurant kitchen. It allows chefs to quickly and easily prepare food, whether a simple dish like scrambled eggs or a more complex meal like a casserole.

Mixers also make it easy to create large batches of food, which is ideal for busy restaurants that need to serve many customers. In addition, mixers can reduce food waste by making it easy to portion out ingredients.

Mixers

While some restaurants may opt for a more minimalistic approach, tables are typically one of the first things guests notice when they enter an eatery. In addition to their aesthetic value, tables also play an important role in the overall dining experience.

Customers come to restaurants to sit and enjoy a meal, not to stand around. That's why chairs are important to any restaurant's dining room. Not only do chairs provide a place for customers to sit, but they also help to create a more inviting and comfortable atmosphere.

When choosing chairs for a restaurant, it's important to consider both style and function. A restaurant can create an inviting space with the right chairs that encourage customers to linger and enjoy their meals.

For your restaurant office setup, you can check out these cool office chairs here .

Serving ware         

A restaurant is only as good as its serving ware. The right plates, bowls, and utensils can make a meal more enjoyable and memorable. They convey the desired tone and atmosphere of the restaurant.

By carefully selecting the right serving ware, you can create an unforgettable dining experience for your guests. For instance, if you are working on a cafe business plan, you need to plan out the appropriate serving ware for cafes.

Serving ware

For many of us, utensils are nothing more than tools for eating. But in a professional kitchen, they are so much more. Utensils are one of the most important tools a chef has at their disposal. From prep to plating, utensils create delicious and visually appealing dishes.

Utensils play a vital role in every stage of the culinary process. So do your research and find the best ones that complement your kitchen functions well. Even focusing on a dhaba business plan, utensils are still essential.

Utensils

There are many reasons why napkins are essential in a restaurant. First, they provide a clean surface for diners to place their utensils and glasses. Second, they can be used to wipe up spills and crumbs.

Third, they add a touch of elegance to the table setting. Fourth, they can be used as a makeshift bib when eating messy foods. In sum, napkins play an important role in the dining experience. For business plan related to cafes, napkins are essential.

Salt & Pepper Shakers

One common staple in restaurants is the salt and pepper shaker. Many people might not think much about this humble table accessory, but salt and pepper shakers play an important role in the dining experience. For one thing, they allow guests to season their food to their own taste.

Additionally, salt and pepper shakers allow guests to add flavor without changing the dish itself. Finally, salt and pepper shakers simply add a touch of style to the table setting. Whether mismatched or coordinated, they help create a more inviting atmosphere.

However, every restaurant business plan does not require salt and pepper shakers. For example, if you are working out a cafe business plan, you don't need to plan for salt and pepper shakers.

PoS Systems          

As a budding restaurant owner, you know that efficiency is key to keeping your customers happy. A big part of efficiency has the right tools to streamline your processes. That's where point of sale (PoS) systems come in.

PoS systems take and track orders more effectively, process payments quickly and accurately, and easily manage your inventory levels. So, these days, PoS systems are very important in opening a restaurant business plan.

POS

If you're looking to run a restaurant, you should know that pens are necessary. They're needed to take orders, make menu changes, and do many other tasks. But did you know that pens can also help to improve the customer experience? That's right - by providing pens for your guests, you can make it easier for them to fill out surveys, write down meal suggestions, and more. So, don't miss out on this important tool.

Computers are essential for almost any organization in today's business world, and restaurants are no exception. Computers can help streamline operations, improve efficiency, and allow businesses to provide better service to their customers. Indeed, a few aspects of restaurant management cannot be made easier by using computers.

Well, don't doubt it. Computers are a must-have for efficient management, even if you have a small restaurant business plan.

You know that having papers in a restaurant is very important. Waiters need papers to take orders, and cooks need papers to make food. As you can see, papers are essential in a restaurant! Without them, doing things properly in a restaurant would be very difficult.

Slicers         

Slicers are essential equipment for any restaurant that wants to serve fresh, delicious food. You can quickly and easily slice meat, cheese, vegetables, and fruit with a slicer. This saves time and ensures that each slice is the same thickness, which is important for aesthetics and cooking.

Whether you want a simple countertop model or a heavy-duty industrial slicer, there is sure to be a slicer that will help you create mouth-watering dishes for your guests.

Any restaurant owner knows that speed and efficiency are key to success. And while there are many ways to speed up the cooking process, the microwave is one of the most important tools in a restaurant kitchen. Microwaves allow chefs to quickly cook or reheat food without compromising quality.

They also save energy and labor costs since food can be cooked in minutes instead of hours. Whether planning to run a busy cafe or a fine dining establishment, microwaves are an essential part of any restaurant kitchen.

Deep Fryers

Deep fryers allow you to cook food quickly and evenly, but they also help preserve its quality. In addition, deep fryers can be used to cook multiple items at once, making them ideal for busy restaurants.

Deep Fryers

Storage Containers

As any restaurant owner knows, storage space is always at a premium. Not only do you need to store all your supplies and equipment, but you also need to keep your dining area tidy and uncluttered.

One way to free up space is to use storage containers. Using storage containers efficiently maximizes your restaurant's storage space and keeps your dining area clean and organized.

Storage Containers

Storage Shelves & Racks

Organization is key to keeping the kitchen running smoothly for any restaurant owner. This is why storage shelves and racks are essential for any commercial kitchen. By keeping spices, pots, pans, and other equipment off the floor and organized, shelves and racks help to improve workflow and prevent accidents.

And with various styles and sizes available, you can find the perfect option for your restaurant's needs. So if you want to improve your kitchen's organization and efficiency, add these storage shelves and racks.

Cleaning Materials

You need to ensure that the place is perfectly tidy and spotless. Check out these cleaning materials to ensure your restaurant is clean and welcoming to guests. Whether working on a big or small restaurant business plan, cleaning materials are important.

CCTV Cameras    

Security is super important in the restaurant business. Therefore, you need to invest in a good CCTV camera system to ensure that the place is closely monitored 24*7. You can check out the guide for buying the best CCTV cameras .

Make sure to take the cost estimations of all these important items in your business plan for opening a restaurant. It is one of the most important steps in getting started.

Business Plan for Restaurant Example

We have covered all major aspects in this business plan for restaurant example. Here's a restaurant business plan sample to help you get started. Thank us later for this.

In this food business plan, we propose creating a new restaurant called The Gourmet Grill. The Gourmet Grill will serve various grilled dishes that will tantalize the taste buds of its customers. We have extensive experience in the food industry and are confident that we can make The Gourmet Grill a success.

The upcoming sections present a business plan for small restaurant, i.e., The Gourmet Grill.

The Gourmet Grill will be a full-service restaurant that specializes in grilled dishes. We will offer a wide variety of menu items that appeal to various tastes. We are confident that our experienced team can create a dining experience that will leave our customers wanting more.

The restaurant industry is booming, and there is no sign of slowing down anytime soon. This is good news for us, as The Gourmet Grill intends to specialize in grilled dishes. Grilling is becoming an increasingly popular cooking method, and there is a growing demand for restaurants specializing in it.

This business plan for small restaurants has considered the presence of small and big competitors offering similar menus to customers.

At The Gourmet Grill, we will focus on serving grilled dishes that are both delicious and healthy. Our menu will include grilled chicken, steak, fish, garden salads, and sides. We believe our menu will appeal to a wide range of customers, and we are confident that we can satisfy even the most discerning palate.

Our team comprises experienced chefs who have worked in some of the best restaurants in the country. They are passionate about food and know how to create amazing dishes that delight our customers. In addition to our culinary team, we also have an experienced waitstaff who will attend to our guests' needs and ensure their dining experience is amazing.

We have put a lot of thought into the design of our restaurant and believe it will be one of its biggest selling points. Our goal was to create a space that is both elegant and inviting, and we think we have achieved just that. The Gourmet Grill will be the perfect place for people to gather with friends or family and enjoy some truly amazing food.

We have chosen an excellent location for our restaurant – one that will surely be a hit with diners in the area. The Gourmet Grill will be situated in the heart of downtown, close to all the major attractions. This location offers plenty of foot traffic, which is essential for any busy restaurant .

How can Amazon Business help in Opening a Restaurant?

Opening a restaurant takes a lot of hard work, dedication, and money. One way to help offset some of the costs associated with opening a new restaurant is to take advantage of Amazon Business . Amazon Business offers restaurants bulk discounts, from food and drink products to kitchen supplies and small appliances.

Beyond just saving money, Amazon Business can also help you save time by streamlining the ordering process so you can focus on more important things, like perfecting your menu. So if you're looking for a little help opening your new restaurant, check out Amazon Business.

A business plan for restaurant in India is an essential document for any eatery, regardless of size or experience. This document will help you outline your goals, strategies, and financial projections. Whether starting from scratch or having years of industry experience, it's a valuable exercise.

We hope this blog has helped you clear all queries on a business plan for a restaurant in India. The restaurant business plan sample should have been helpful to help you get started with a similar plan for your business. Make use of our opening a restaurant checklist to help you get started with the essentials for a successful outing.

Opening a restaurant can be a daunting task, but with the help of Amazon Business, it doesn't have to be. This online marketplace offers everything you need to get your business off the ground, from start-up kits and business licenses to furniture and kitchen supplies.

So, what are you waiting for? Register with Amazon Business and start browsing today to make your dream of opening a restaurant a reality with an awesome food business plan. Use our pro tips to craft an Indian restaurant business plan that can help you get started with a booming.

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How does the restaurant menu impacts the customer?

The most important aspect of starting a business is the willingness to do so. Business ideas for women entrepreneurs need only a little bit of grit and power. Be willing to take up the challenge, decide what type of business you want to undertake, create a business plan, research the licenses and permit requirements, look for financing options and get started!

What is the procedure for opening a Restaurant Business in India?

There are various government loan schemes available to fund business ideas for women. Some of them are listed below:

  •   Annapurna Scheme
  • Mudra Yojana Scheme
  • Cent Kalyani Scheme
  •   Udyogini Scheme
  • Pradhan Mantri Rozgar Yojana
  • Stree Shakti Yojana
  • Bhartiya Mahila Bank Business Loan
  • Dena Shakti Scheme
  • Mahila Udyam Nidhi Yojana

What kind of staff should be employed in a restaurant?

Women entrepreneurs add to the economic development of the country. Business ideas for women will find their funding in these schemes. Here are some of the Micro, Small and Medium Business Loan Schemes for women entrepreneurs:

●      Trade Related Entrepreneurship Assistance and Development (TREAD) Scheme

●      Cent Kalyani Scheme

●      Udyogini Scheme

●      Pradhan Mantri Rozgar Yojana

●      Stree Shakti Yojana

●       Bhartiya Mahila Bank Business Loan

●      Dena Shakti Scheme

●      Mahila Udyam Nidhi Yojana

●      Mudra Yojana

What are the types of restaurant businesses in India?

Yes, you can start a business with low capital. Create a business plan and capital requirement plan before you start looking for funding. To start with low capital, make sure you create a business plan that requires less funding in the beginning. Some of the low capital ideas include:

·        Content creation

·        Event planning services

·        Social media consultant

·        Online tutoring

·        Affiliate marketing

·        Graphic design

What factors to consider while creating a business café plan?

Here are some of the startup ideas for women to try:

·       Online business ideas for women like tutoring, consulting, career counselling, content strategist, etc.

·       Home business ideas for women include bake shops, flower shops, food/ tiffin services, yoga instructors, etc.

·       Small business ideas for women include tailoring, saloon/ beauty parlour, skill classes, content writing, graphic designing, etc.

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Indian Restaurant Business Plan

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Welcome Restaurants USA Inc. a wholly owned subsidiary of Welcome Restaurants Private Limited (Indian Parent Company) is looking to expand its operations by buying a 50% stake in Indian Express Restaurant Inc., a New York corporation that currently owns and operates a full service Indian restaurant in New York City. After the investment of $1,000,000 is completed, Welcome Restaurants USA Inc. will look to expand the existing operations of Indian Express and also look to open up to 2 more restaurants offering a delectable Indian cuisine that blends foods from all parts of the Indian subcontinent. Given the excellent management team and experience of the principals these ventures are sure to be profitable and generate employment and revenues in the communities they serve.

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How to Write a Restaurant Business Plan in 2024 (Step by Step Guide with Templates)

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A comprehensive restaurant business plan is a framework that guides you to plan and forecast every element of restaurant management and operations.

This includes anything from your restaurant's menu design, location, financials, employee training, and a lot more.

Crafting a solid business plan is important, as it helps:

  • Transform your restaurant ideas into reality.
  • Boosts entrepreneurial success by 16% (Harvard Business Study) .
  • Equips you to navigate challenges before they arise.
  • Attracts potential investors.

“You have to show any potential investor that you have an actual plan, you know what you’re talking about, it looks professional, and you’re not just screwing around.” - Charles Bililies, owner of Souvla

Planning is key to restaurant success. Without a plan, you're more likely to join the 26% of restaurants that fail within a year.

Create a business plan to set yourself up for success.

Here's how to get started. 

restaurant business plan pdf india

A step-by-step guide to writing a restaurant business plan

Embarking on a restaurant venture is an exciting prospect filled with endless possibilities.

However, the key to transforming your culinary dreams into reality lies in the foundation of a well-crafted restaurant business plan.

This guide will walk you through creating a winning restaurant business plan , from defining your niche to seeking expert advice.

So, are you ready to cook up some success?  Let's get started. 

Essential components of a restaurant business plan

A well-structured restaurant business plan typically consists of the following key components:

  • Executive Summary

Company Description

  • Market Analysis
  • Restaurant Design
  • Market Overview
  • External help
  • Financial Analysis

Delving into each section

Now, let's take a closer look at each section of your restaurant business plan and explore the key elements to consider:

1. Executive summary

A restaurant business plan should always begin with an executive summary. Why?

  • 80% of venture capitalists say they read the executive summary first.
  • 62% of investors say they would not continue reading a business plan if the executive summary did not capture their interest.
  • A strong executive summary can increase the likelihood of securing funding by up to 40%.

An executive summary not only acts as the introduction to your restaurant business plan samples but also as a summary of the entire idea.

The main aim of an executive summary is to draw the reader (oftentimes an investor) into the rest of your business plan.

The executive summary also helps you envision the identity of your restaurant which essentially shapes the customer experience and sets you apart from competitors.

To establish a distinct identity, you need to focus on c ommon elements of an executive summary, including:

  • A mission statement  
  • Proposed concept development
  • Cuisine selection
  • The overall execution
  • The potential costs
  • Expected return on investments (ROI)

Let's take a more in-depth look at the concept development, cuisine selection, and mission statement.

Further reading

  • How to write a restaurant executive summary

Concept Development

Selecting the type of restaurant, service style, and atmosphere is the first step towards creating a unique dining experience. Whether you envision a sample menu for a:

  • cozy, intimate bistro
  • bustling quick-service deli
  • fast-casual restaurant
  • fine dining establishment

Your concept should reflect your passion and expertise in the industry.

With a broad range of options, it’s critical to scrutinize your target market and pinpoint the most suitable choice considering their preferences and your capabilities.

When planning your restaurant design, keep in mind that it should effectively complement your chosen theme and cuisine.

Additionally, consider the potential for patio seating and the involvement of your management team in making these critical decisions.

A well-thought-out concept will not only set the stage for an unforgettable dining experience but also pique the interest of potential investors.

Cuisine Selection

The cuisine you select for your restaurant can significantly influence its success.

Choosing the appropriate cuisine is vital for distinguishing your establishment from competitors and attracting your target market.

To make an informed decision, consider factors such as:

  • Market demand
  • Expertise and passion
  • Ingredient availability
  • Competition
  • Profitability
  • Cultural fit
  • Seasonality

Dietary restrictions and trends

In the highly competitive restaurant industry, keeping track of current and emerging cuisine trends can be a significant advantage.

From regional delicacies to innovative fusion dishes, understanding what’s popular and in demand can help you tailor your offerings to the desires of your target audience.

By thoroughly analyzing the market and adapting to evolving tastes, your restaurant can remain relevant and successful in the long run.

Crafting a mission statement

A well-constructed mission statement communicates the purpose, values, and goals of your restaurant to potential investors and customers alike.

A mission statement serves as a guiding light for decision-makers and employees, fueling their efforts to achieve your restaurant’s objectives.

To create an impactful mission statement, consider the following steps:

  • Identify the purpose of the restaurant.
  • Contemplate the brand’s image.
  • Account for the target audience.
  • Incorporate company values.
  • Ensure brevity and comprehensiveness.

Related content:  How to Write a Restaurant Mission Statement  

Remember, your mission statement should not only differentiate your restaurant from competitors but also resonate with your target market.

By articulating your restaurant’s unique values and vision, you’ll create a strong foundation upon which to build a thriving and successful business.

2. Company description

This is the part of the restaurant business plan where you fully introduce the company.

Start this section with the name of the restaurant you are opening along with the location, contacts, and other relevant information. 

Also, include the owner’s details and a brief overview or description of their experience.

The second part of the company description should highlight the legal standing of the restaurant and outline the restaurant’s short and long-term goals.

Provide a brief market study showing that you understand the trends in the regional food industry and why the most independent restaurant investors will succeed in this market.

Here's an example of the page layout:  

Restaurant Name: [Restaurant Name]

Location: [Restaurant Address]

Contact: [Restaurant Phone Number] | [Restaurant Email Address]

Owner: [Owner Name]

Experience: [Owner Name] has over [Number] years of experience in the restaurant industry. They have worked in various roles, including [List of Roles]. They are passionate about food and creating a memorable dining experience for their guests.

Legal Standing: [Restaurant Name] is a [Type of Legal Entity] registered in [State/Province].

Short-term Goals:

  • Generate [Amount] in revenue within the first year of operation.
  • Achieve a [Percentage] customer satisfaction rating within the first six months of operation.

Long-term Goals:

  • Expand to a second location within five years.
  • Become a recognized leader in the regional food industry.

Market Study:

The regional food industry is experiencing a number of trends, including:

  • An increasing demand for fresh,  local ingredients.
  • A growing interest in ethnic cuisine.
  • A preference for casual dining experiences.

3. Market analysis

The market analysis portion of the restaurant business plan is typically divided into three parts.

3.1 Industry analysis

What is your target market? What demographics will your restaurant cater to?

This section aims to explain your target market to investors and why you believe guests will choose your restaurant over others.

Comprehending your target market is key to customizing your restaurant offerings to their preferences and needs.

By diving into demographics, preferences, dining habits, and trends, you can fine-tune your concept and marketing strategy to reach and appeal to your target audience effectively.

An example of analyzing your target market

  Comprehending your target market is key to customizing your restaurant offerings to their preferences and needs.

Demographics and preferences

Identifying your primary target market involves considering factors such as:

For example, a neighborhood with a high concentration of families might prefer a family-friendly restaurant with a diverse menu catering to various age groups and dietary preferences.

Conversely, a trendy urban area with a predominantly young and affluent population may gravitate towards upscale dining experiences and innovative cuisine.

Cultural and ethnic backgrounds also have a significant impact on restaurant preferences, with people from different backgrounds having distinctive tastes and customs that influence their dining choices.

By thoroughly understanding the demographics and preferences of your target market, you’ll be better equipped to create a restaurant concept that resonates with them and ultimately drives success.

Dining habits and trends

As the restaurant industry continues to evolve, staying informed about dining habits and trends is crucial for adapting your offerings and attracting customers.

For example, the rise of online ordering and delivery services has significantly influenced dining habits, with many consumers seeking the convenience of having their meals delivered to their doorstep.

Health trends have also had an impact on dining habits, with an increasing number of individuals seeking healthier options when dining out.

By staying abreast of current habits and trends, you can anticipate the needs and desires of your target market and tailor your restaurant’s offerings accordingly.

This forward-thinking approach will not only help you stay competitive but also foster long-term success in the ever-changing restaurant landscape.

  • How to find your restaurant's target market

3.2 Competition analysis

It's easy to assume that everyone will visit your new restaurant first, so it is important to research your competition to make this a reality.

What restaurants have already established a customer base in the area?

Take note of everything from their prices, hours, and service style to menu design to the restaurant interior.

Then explain to your investors how your restaurant will be different.

3.3 Marketing analysis

Your investors are going to want to know how you plan to market your restaurant. How will your marketing campaigns differ from what is already being done by others in the restaurant industry?

How do you plan on securing your target market? What kind of offers will you provide your guests? Make sure to list everything.

The most important element to launching a successful restaurant is the menu . Without it, your restaurant has nothing to serve.

At this point, you probably don’t have a final version, but for a restaurant business plan, you should at least try to have a mock-up.

Add your logo to the mock-up and choose a design that you can see yourself actually using. If you are having trouble coming up with a menu design or don’t want to pay a designer, there are plenty of resources online to help.

The key element of your sample menu though should be pricing. Your prices should reflect the cost analysis you’ve done for investors. This will give them a better understanding of your restaurant’s target price point. You'll quickly see how important menu engineering can be, even early on.

5. Employees

The company description section of the restaurant business plan briefly introduces the owners of the restaurant with some information about each. This section should fully flesh out the restaurant's business plan and management team.

The investors don’t expect you to have your entire team selected at this point, but you should at least have a couple of people on board. Use the talent you have chosen thus far to highlight the combined work experience everyone is bringing to the table.

Download our free restaurant business plan  It's the only one you'll ever need. Get template now

6. Restaurant design

The design portion of your restaurant business plan is where you can really show off your thoughts and ideas to the investors. If you don’t have professional mock-ups of your restaurant rendered, that’s fine.

Instead, put together a mood board to get your vision across. Find pictures of a similar aesthetic to what you are looking for in your restaurant.

The restaurant design extends beyond aesthetics alone and should include everything from restaurant software to kitchen equipment. 

7. Location

The location you settle on for your restaurant should be well aligned with your target market (making it easier to cater to your ideal customer) and with your business plans.

At this stage in the process, its not uncommon to not have a specific location in mind - but you should at the very least have a few options to narrow down.

Tip: When you approach your investors about potential locations, make sure to include as much information as possible about each venue and why it would be ideal for your brand. Go into as much detail as possible - including everything from square footage to the demographics of the area.

Example for choosing an ideal location

Choosing the ideal location for your restaurant is a pivotal decision that can greatly influence your success. 

To make the best choice, consider factors such as foot traffic, accessibility, and neighborhood demographics.

By carefully evaluating these factors, you’ll be better equipped to maximize visibility and attract your target market.

Foot traffic and accessibility

Foot traffic and accessibility are essential factors in selecting a location that will attract customers and ensure convenience.

A high-traffic area with ample parking and public transportation options can greatly increase the likelihood of drawing in potential customers.

Additionally, making your restaurant accessible to individuals with disabilities can further broaden your customer base and promote inclusivity.

It’s also important to consider the competition in the area and assess whether your restaurant can stand out among existing establishments.

By choosing a location with strong foot traffic and accessibility, you’ll be well on your way to creating a thriving restaurant that appeals to your target market.

Neighborhood demographics

Analyzing neighborhood demographics can help you determine if your restaurant’s concept and cuisine will appeal to the local population.

Factors such as income levels, family structures, and cultural diversity can all influence dining preferences and habits.

By understanding the unique characteristics of the neighborhood, you can tailor your offerings and marketing efforts to resonate with the local community.

Conducting a market analysis can be a valuable step in this process.

To gather demographic data for a particular neighborhood, you can utilize resources such as the U.S. Census Bureau’s American Community Survey and reference maps.

Armed with this information, you can make informed decisions about your restaurant’s concept, menu, and pricing, ensuring that your establishment is well-positioned for success within the community.

Conducting market research will further strengthen your understanding of the local demographic.

8. Market overview

The market overview section is heavily related to the market research and analysis portion of the restaurant business plan. In this section, go into detail about both the micro and macro conditions in the area you want to set up your restaurant.

Discuss the current economic conditions that could make opening a restaurant difficult, and how you aim to counteract that. Mention all the other restaurants that could prove to be competition and what your strategy is to set yourself apart.

9. Marketing

With restaurants opening left and ride nowadays, investors are going to want to know how you will get word of your restaurant to the world.

The next marketing strategy and publicity section should go into detail on how you plan to market your restaurant before and after opening. As well as any plans you may have to bring a PR company on board to help spread the word.

Read more: How to write a restaurant marketing plan from scratch

10. External help

To make your restaurant a reality, you are going to need a lot of help. List any external companies or software you plan on hiring to get your restaurant up and running.

This includes everything from accountants and designers to suppliers that help your restaurant perform better, like POS systems and restaurant reservation systems .

Explain to your other potential investors about the importance of each and what they will be doing for your restaurant.

11. Financial analysis

The most important part of your restaurant business plan is the financial section . We would recommend hiring professional help for this given its importance.

Hiring a trained accountant will not only help you get your own financial projections and estimates in order but also give you a realistic insight into owning a restaurant.

You should have some information prepared to make this step easier for the accountant.

He/she will want to know how many seats your restaurant has, what the check average per table will be, and how many guests you plan on seating per day.

In addition to this, doing rough food cost calculations for various menu items can help estimate your profit margin per dish. This can be achieved easily with a free food cost calculator. 

  • Important restaurant metrics to track

A well-crafted restaurant business plan serves as a roadmap to success, guiding every aspect of the venture from menu design to employee training.

By carefully considering each component of the plan, aspiring restaurateurs can increase their chances of securing funding, attracting customers, and achieving their long-term goals.

Remember, a restaurant business plan is not just a document to satisfy investors; it is a living tool that should be revisited and updated regularly as the business grows and evolves.

By staying committed to the plan and adapting it as needed, restaurateurs can ensure that their culinary dreams have a solid foundation for success.

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Saif Alnasur

Saif Alnasur used to work in his family restaurant, but now he is a food influencer and writes about the restaurant industry for Eat App.

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How to Start a Small Restaurant Business in India

It is without saying, the restaurant business is a profitable opportunity in India. Also, it is one of the most preferred businesses for young entrepreneurs. However, it’s not an easy business. Find in this article, a step-by-step guide to starting a new restaurant in India with valuable inputs like market demand, costs, location, interior, staffing, and more.

Depending on the menu style, preparation methods, and pricing there are different types of restaurants you can find. These are ethnic, fast food, fast casual, casual dining, fine dining, quick service, family style, barbeque, cafe, pub, tabletop cooking, etc.

The restaurant business comes under the food retail segment. Currently, it is a Rs 75000 crore industry according to industry experts. Also, it is growing at an annual rate of 7%. Some of the highest-growing segments are quick-service restaurants, casual dining, cafe, and fine dining. Apart from these the pub, bars, lounges, and clubs are getting popular these days.

Although the restaurant business is a highly lucrative opportunity for young entrepreneurs, it takes a lot of effort to make it successful. It needs a lot of dedication, long hard work, proper planning, and the willingness to face startup challenges.

13 Steps to Start a Restaurant Business in India

Step 1: check if the restaurant business is for you or not.

The brick-and-mortar restaurant business can be difficult to scale successfully. It requires upfront capital expenditure, operating expenses (especially rent), and the different other issues. Additionally, keeping a restaurant alive and relevant for four or five years is extremely challenging.

You need to constantly analyze the good habit, buying nature, and pricing strategy of your restaurant. Also, you need to be extremely good at accounting. So, check whether it is a business for you or not. And if you find the answer NO, then the rest of the article is purely a waste of time for you.

Read:   Best Food Business Ideas in India

Step 2: Decide the Restaurant Style

This is the first step you need to consider very carefully. Because the other following steps depend on this particular decision. Determining the specific restaurant style depends on your investment capacity and the eating habits or preference of the local demographics. After deciding on the concept, you can determine the menu, interior theme, sitting style, etc.

Step 3: Franchise or Own Brand

Currently, you can find a lot of national and international brands that are offering franchise opportunities on a pan-India basis. Certainly, initiating a franchise business is an easier option than starting your own. However, opening own brand ensures certain advantages.

If you start your own brand, you don’t need to share the profit. Additionally, you don’t need to spend money on the franchise fee. However, you will need to form the SOP of your own and you need to take care of the entire promotion responsibility.

Step 4: Craft the Business Plan including Startup Cost

In initiating a franchise outlet, the parent company will provide you with a cost structure. However, if you are opening your own brand, you will need to craft a project report. In this business, financial analysis plays the most pivotal role. Here we have listed some of the major costs.

a) Cost of the Venue

It is the highest expense in this business. You have to calculate the rent of the place with electricity, water bills, and maintenance cost (if any).

b) Interior Cost

You will need to decorate the interior according to the restaurant theme. Broadly, it includes flooring, wall decoration, ceiling, air conditioner, lighting, music, and finally furniture.

c) Kitchen Equipment Cost

You will need to arrange the kitchen equipment and tools. It may include different crockery sets, burners, storage, refrigerators, microwave, and other gadgets or utensils.

d) Licensing, Permission & other Pre-operative Expenses

You will need to calculate the pre-operative expense including the licensing and permissions. Also, it includes consultancy fees and Govt. fees.

e) Technology Cost

You won’t be able to run the restaurant successfully without the help of technology. You will need a customized POS software solution for keeping the daily accounting, stock inventory, etc. So, you need to calculate the cost of procuring the POS.

f) Manpower Cost

The restaurant needs different types of personnel including a chef, water, counter staff, etc. So, you need to calculate the manpower resource you need and the approximate cost of the salary overhead.

f) Marketing Expenses

You need to invest some money in marketing and promotion. So, you need to prepare a marketing plan and calculate the promotional activity cost.

Step 5: Arrange the Finance for the Restaurant Business

After calculating the startup budget, you will need to get finance ready for opening the restaurant. If you are a first-generation entrepreneur, then it’s better to start the restaurant with your own fund. However, you can also apply for a bank loan or venture capital investment. Usually, banks ask for collateral security.

So, you need to arrange that. On the other hand, angel investors look for profit potential, expansion plans, and business models. And after satisfying these factors, you can avail yourself of finance. Also, you can open the restaurant on a partnership basis to get financial help.

Step 6: Select a Restaurant Name & Logo

It is another important aspect you need to consider carefully. At the time of business registration and licensing, you will need to provide the restaurant name and logo. Actually, the name and logo give the first impression to the customers of your brand. So, keep your name simple, relevant, and catchy.

Additionally, ensure that the restaurant name is marketable and has domain availability. Before finalizing the name, check whether the domain is available or not. Because you are surely going to launch a website for your restaurant.

Step 7: License & Permission for Restaurant Business

First of all, the specific license required depends on the specific location where you operate the restaurant. However, in India, you will find some of the requirements are common. Here we have listed the basic licensing and permit requirements.

a) Business Registration

If you are planning to run a legally-compliant restaurant business, registering your company is mandatory. Based on your scale of operation, select a business structure. The popular business formations in India are sole proprietorship, partnership, or Private Limited Companies.

b) Professional Tax Registration

Professional Tax registration is also a must. You can pay the tax either quarterly or yearly basis.

c) GST Registration

You will need to register with GST to get the GSTIN number. If you have more outlets in different states, then you need to apply state-wise.

d) Trade License

Obtain the Trade License from the local Municipal Authority. It is a must. And only the local corporation can issue this license.

e) FSSAI Registration

FSSAI stands for Food Safety and Standards Authority of India. For a restaurant or eatery operation, FSSAI registration is a must.

f) Liquor License

If you serve alcohol, then you will need to obtain a liquor license for your restaurant. Obtaining a liquor license requires a lot of time. Also, it is expensive.

g) Trademark Registration

Secure the logo with Trademark Registration. Initially, you can use the TM mark. And after getting the final registration, you can use the R sign.

Step 8: Select a Proper Location

The overall success of a restaurant depends immensely on the location. In India, the metro city areas are the best places to start this business. Some of the most potential cities are Mumbai, Bangalore, Delhi NCR, Pune, Kolkata, Chennai, Hyderabad, Goa, Ahmedabad, Indore, etc. However, at present, restaurant businesses are performing well in almost all cities and towns in the country.

Good visibility is a crucial factor in the restaurant business. Also, try to occupy a space on the ground floor. However, it is not applicable to the find dine or food court restaurants. Providing a parking facility is a must these days. Finally, you must acquire a commercial property and NOC from your immediate neighbors.

Step 9: Establish the Brick & Mortar Restaurant

Now it’s time to decorate the venue. Try to have a floor plan before you start working on it. Hire an experienced interior designer to get to job done rightfully. Depending on the concept, you will need to provide the ambiance. Color combination and lights play the most vital role in the interior. Procure the furniture and fixtures according to the theme of the restaurant. Decorate the outer wall also. A good quality sign is a must on the outer wall.

Step 10: Get the Resources

First of all, craft an HR plan. You need skilled and experienced employees to run the restaurant properly. Broadly, you need kitchen staff, service staff, and management staff. Also, you can think about keeping a manager.

Get the right POS (point of sale) software for your restaurant business. You need it even if you run a niche restaurant. Ask the company for a demo presentation. Before, procuring the software, check if it is effective and beneficial for your business.

Step 11. Buy Equipment

You will need to buy a range of tools and equipment to properly run a restaurant. Some of the basic types of equipment that need to be arranged are the following:

  • Refrigerators/ Freezers
  • Cutting Surfaces
  • Racks & Shelves

In addition, you will also need to buy chairs and tables as per sitting arrangement, condiment dispensers, salt and paper shakers, utensils, etc.

Step 12: Create the Menu and Tariff

Depending on the restaurant concept, style, and taste of the local demographics, you have to craft a menu and fix a pricing chart. Try to keep some basic food items with designer items. Also, you can offer a combo or Thali-type menu which is very popular in India. Try to keep the foods that need similar ingredients to cook. It helps in reducing inventory costs. Also, provide the foods that need ingredients that are available in the local market easily.

Step 13: Choose Quality Suppliers

Getting fresh ingredients at your doorstep on the regular basis is crucial for smooth operation. Ensure, that the suppliers provide quality and up-to-the-mark materials for restaurant use. Also, check the price for the bulk purchase. Try to have at least more than one vendor in each segment.

The restaurant business is definitely a self-rewarding career for passionate individuals. However, it requires proper planning and dedicated implementation to get long-term success.

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Rupak Chakrabarty

Rupak is the founder of MUVSI. He is a small business consultant by profession. His mission is to make people know how to make money and understand personal finance for a better living.

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COMMENTS

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    Find in this article, a step-by-step guide to starting a new restaurant in India with valuable inputs like market demand, costs, location, interior, staffing, and more. Depending on the menu style, preparation methods, and pricing there are different types of restaurants you can find.