How to Start a restaurant In India

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Foodies are here and there and so are the food bars. Are you interested in spreading the love for food through your own restaurant? Then this article is a complete guide on how to start a Restaurant in India, check it out.

Owning a restaurant in this pandemic situation is not an easy task, but when you are confident enough to convert your dream into reality then it’ll be a lifetime experience. You will not regret it later as it will be a rewarding journey for you.

Before starting, you need to go through little homework. You should study the market, you need to work on clients’ food choices, regional food choices, price, taxes, and many more things.

So for your convenience, we are here with some helpful ideas which will lead you to a successful restaurant opening ceremony. Oh yeah! It’ll be a ceremony. It’s your dream. So you must celebrate. Right?

Without wasting any more time, dive deeper into the article to get a clear vision for your dream restaurant in India.

Get Familiar with the Restaurant Industry

The restaurant industry is the fastest-growing industry even in 2021. As per the National Restaurant Association of India (NRAI) report, India will reach nearly 6 lakh crore INR in the coming years. 

Though in this pandemic situation, running a restaurant is a little hard for the owner, it’s not impossible. Rather running your own restaurant can influence the future budding restaurant openers.

And if you are having a dream of a fine restaurant, the rapid urbanization, fastest-growing income, growing working percentage, advanced technology will help you to rise with a new restaurant.

So go through this article.

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How to Start a Restaurant in India

Before entering the F&B industry, you must go through a proper business strategy. A proper strategy and research work can help you to stay and run this lucrative domain.

Here are a few tips that can help you to run a proper restaurant successfully

  • Selection of theme of the restaurant
  • Investment in the restaurant business
  • Evaluation of restaurant costs
  • Picking up a prominent area to open the restaurant
  • Proper license to run an F&B business
  • Selection of trustworthy people with hotel management skills
  • Going for delicate and unique food items at budget-friendly prices when you are starting
  • Arranging a delivery service for your restaurant.
  • Arrangement of vendors and suppliers
  • Modern technology to be used in restaurant

Now we will discuss this in detail to help you out

Modern restaurant in india

Selection of Theme of the Restaurant

The first thing you can do is select a theme for your restaurant. There will be different price ranges for different things. You can keep the antique theme with antique pieces, you can go for some classic retro looks. You can choose your restaurant’s theme based on a specific movie also.

Whatever you will choose, keep in mind the materials which should be arranged in advance. Proper interior, an equal ratio of lighting, maintaining platters, cushion, sofa, curtains, and chairs in the same thing.

You can choose cuisine as per the theme also if you want. But you can always keep at least one theme-based soft drink or a spectacular platter.

There is one more thing to be considered when you are picking up a theme or concept- the capital that you can invest in your restaurant. 

This business needs investment first, then you can calculate the Average Price per Customer (APC). The average price per customer will decide the price that will be spent on your restaurant by each and every client. 

After picking up the final theme and concept, you must have a proper business plan so that you can cope with the future development of your own business. Also, this business plan can be presented to a potential investor who will be interested in your restaurant.

n of Theme of the Restaurant

Investment in the Restaurant Business

Investment is the most important thing when you are dreaming of your own restaurant. It is noticed that in some cases new business owners or restaurant owners can not see a lightning path due to a lack of proper monetary funds.

So it’s very important to prepare your investment chart. When you are fully done with your restaurant theme, then preparation of the cost chart will be the second thing you need to do. To finalize the capital that is needed to arrange everything properly for the restaurant.

When you get the ideology of capital then you can go for the below-mentioned points.

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Self-Funding

If you have enough bank balance that can handle a new business idea, then you have already crossed a bump on the pathway of your dream. If you have a partner who is also interested in opening a new restaurant then both of you can run the restaurant with both of your funds.

Loan

You can go for a loan to make your dream come true. But keep in mind that a loan can be a hassle later.

Also Read: All about Debit and Credit Notes you should know about

VC/Angel Funding

You can go for a potential investor. But in some cases, you can get a hurdle because most of the time, prominent investors look for an experienced and dedicated business owner.

But as a beginner, they will not accept it easily. So try to show some of your previous business work if possible to show off.

Evaluation of Restaurant Costs

Restaurant costs must be thought of after the above two points. It needs to be evaluated and planned with proper care. We are pointing out some of the most important costs that are included in the restaurant costs.

Food Cost

Food cost is the main cost which is included in restaurants costs. Food costs consist of the raw materials used in the preparation of dishes.

Most of the time, it will be 30% of your menu cost. You must have to finalize the proper vendors and suppliers who will arrange the raw materials in advance to prepare the dish.

food cost

Labor Cost

This is the second most important cost that you should think of. Labor costs will be a big amount when you are thinking of a new restaurant. You have to arrange a few waiters, cashiers, chefs, and many more as per your requirement.

labor cost

Overhead Cost

The overhead cost includes the cost excluding the food-related things. Here are some of them.

  • Rent is a significant amount that should be kept in mind. Rent can differ as per your choice of location. Prior location rents will be higher than in colony-side places. Keep in mind that a maximum of 10% of the revenue will be kept for rent.
  • Interiors will take a revenue amount. If you are thinking of a theme-based restaurant, a little higher must be kept.
  • Kitchen Equipment is another huge amount for a restaurant. At first, you might have a huge cost for this one. But if you think long-term, then it will be recovered easily.
  • Restaurant Licenses will take an amount based on your establishment type. It cannot be ignored as without the proper license and permission, you can’t run a restaurant.
  • Marketing is a great thing nowadays. It can’t be ignored because marketing can help you in growing the business with ease. Both offline and online marketing is a necessity for the new restaurant.

Picking up a Prominent Area to Open the Restaurant

Location is an important factor when thinking of a new restaurant. Location can determine your success rate sometimes in the restaurant business. When you are looking for a location, identify the competitors of the same business.

Measure their progress and success rate and try to identify what you can improve in your planning. 

You can check their cuisine types, dining facilities, delivery service, appearance, and customer service. When you will assess this, you will get an idea of the customers who hover in that same region and their choices. 

Also Read: How to start a Real Estate Business in India

You must check the accessibility of the location you have picked up. The location must have a proper transport system. Also, you have to make sure that the location is visible to the foodie community.

Never forget to get a no-objection certificate from the neighbourhood of the restaurant location.

Picking up a Prominent Area to Open the Restaurant

Proper License to Run an F&B Business

You must have some professional government-approved licenses that will help you to run the restaurant business. These fees are dependent on your establishment size. Also, try to apply as soon as possible because this approval needs some time. 

Here is the license you need to get before starting a restaurant business:

  • Trade license from the municipal corporation
  • Food Safety and Standards Authority of India (FSSAI) to operate a food business
  • GST Registration to get the GSTIN number
  • Professional tax license for employing salaried staff
  • Liquor License Business Registration as a partnership firm or a Pvt Ltd company
  • Fire safety license Pollution control license

Selection of Trustworthy People with Hotel Management Skills

You have to hire some brilliant young energetic people who can handle the business under your guidance. You can hire people through referral because in this way you can have trustworthy people in no time.

If you don’t have any references, you can go for the advertisement that includes the details of the hiring process, qualifications, eligibility, and working shift to work in a restaurant.

You can choose three types of staff:

  • Kitchen staff including food preparing staff, food decoration staff, 
  • Service staff including waiters
  • Administration staff including cashier, manager, storekeeper.

Also Read: How to Start an e-Commerce Business in India

Going for Delicate and Unique Food Items at Budget-Friendly Prices when you are Starting

An innovative menu item can have a great impact on your restaurant. Items should be easy to understand and easy to cook. You can serve dishes with the same ingredients on them. This can help reduce the overall cost.

The menu should consist of a starter, main course, side items, and dessert and drinks. You can choose some theme-based food items also to attract your foodie customers.

Budget-Friendly Prices when you are Starting

Arrangement of Vendors and Suppliers

You have to contact a few vendors and suppliers of each food category.  You have to compare the prices among the vendors to save your cost.

You should have a long-term contract with your vendors so that you can maintain a raw material supply all time.

Arrangement of Vendors and Suppliers

Modern Technology to be Used in Restaurant

You must have modern technology that can maintain the proper record of the business data. Try to use some datasheet that can help you maintain all the strategies properly.

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Maintaining Proper Hygiene in Pandemic Situations

When you are planning to open a new restaurant in 2021, you have to maintain proper hygiene. You must acquire sanitiser at every table, at the entrance of the restaurant. Try using a face mask when you are trying to connect to a customer.

Also Read: How to Start a Garment Business in India

Frequently Asked Questions (FAQs)

How can I start Investing in my Restaurant?

You can go for your personal monetary fund to start your business. Also, you can enlist your business with loans and investors to get huge profits. You can also check for some investors.

How can my Business Restaurant Work?

You have to maintain proper research on this restaurant’s business. You must assess your competitors to understand the market of the business and customers’ choices.

How many Teammates do I need to Start my Business?

You have to hire huge manpower in this business such as kitchen staff, administrative staff, vendors and suppliers.

How Much Time do I need to Stand my Business Properly?

It’s fully dependent on your dedication and passion for the business. You should plan a proper business strategy to get a successful future in business.

Do I need any Skills to be Successful in Business?

It’s mandatory to have the business skills to maintain a business-like F&B with great success.

Conclusion

Hope you get the ideology to fulfil your dream from this article written by me. Running a restaurant is not a hilarious thing but you have to maintain a proper strategy. We wish you all the good luck to run your business successfully with no prior experience.

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About the author

Surabhi Guleria

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