How To Start A Cafe In India

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A freshly brewed coffee is the best thing when one is confused or exhausted. So if you want to be the one who will help to get a hot freshly brewed coffee, then you can go to a cafe, run by yourself. This article is gonna be a learning article where you will get full-fledged minute details of how to start a cafe in India.

We Indians are very fond of freshly brewed coffee. May it is whole day business deals handling or being a confused college student, you will definitely go for a cup of steaming coffee. This love and passion for coffee have led to a blooming of the cafe business in India.

If you want to be a new-age entrepreneur, you can choose this lucrative business idea over everything. How? Go through the article.

As per a report, the coffee shop business will take a huge market in near future. Because people of India love to go to a charming cafe, where soft music, quality coffee, various coffee items, and much more will be available. So if you are an embryonic entrepreneur, this coffee shop business is just for you.

Also, the coffee shop business i.e. cafe is a lucrative business that refers to high-profit margins, expansion of cafe chain, and huge future growth. Also, there are so many cafes that include costly coffee items for coffee lovers. So in that case, you can be the one with low-budget freshly brewed coffee.

So “How, where, when you will start, run and profit from a cafe” is the main topic in this article. You will get to know about the details to get into a cafe business.

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Let’s start.

Overview of a Cafe Business

A cafe is a casual place where people go for casual meetings, enjoyment, and relaxation. This is basically a restaurant that serves coffee, tea, refreshments, cakes, pastries, and snacks for people.

Overview of a Cafe Business

 

For a few decades, coffee shops have been in high demand at every corner of the country. Coffee and tea both are in high demand with some innovative recipes. As per a report of 2020 coffee shops and industries hold 11% of the market in India. 

Reasons for the huge growth of coffee shops or cafes in India

There are several reasons behind the raising of the cafe business in India. Such as – 

  • Rising middle-class people who want to have a short relaxation period after their working load in the office or workplace.
  • Increasing brand awareness is another reason for growth.
  • One can have international variations of coffee, tea, and other snacks at his or her comfort zone.
  • People can get a feeling of luxury and elegance within budget.
  • Cafes arrange highly comfortable sitting arrangements so that people from every age group can enjoy a long-time sitting in the cafe.
  • Young age insta stars love to get an Instagram fit photo frame that can enhance their Instagram account. So they prefer a  cafe with cool interior decoration.
  • Also, young people love to spend time in a cafe in their comfort zone.
  • Various food items like international branded cakes, pastries, savories, and chocolate are available in a cafe. So people can get a huge range of food items.
  • The cafe can be a budget-friendly place for all kinds of people. 

Checklists that can Run a Café Shop in India with ease

There are some important factors that can be a master blaster for your coffee business. You should keep in mind the below-mentioned factors before you get into a coffee shop business.

  • You should draft an Effective Business Plan that can grow with a high margin profit as well as customers can get a quality product
  • Arrange an Eye-Catchy Location that will be easily accessible
  • Prepare a Mindful Budget so that everyone can afford your cafe items
  • Conducting Market Research is the most important to get to know about the people’s choices, and much more
  • Attractive and Cost-Effective Menu from international brands
  • Research Your Competitor on how they treat people, what their menu is, how much price they are setting, etc.
  • Mandatory Registrations and Licenses that can be collected from the municipality
    Buy Robust and Sturdy Equipment that will last longer 
  • Appoint Qualified Staffs who can handle the business with their pleasing personality and also they are trustworthy
  • Design and Characterise Your Café with a specific theme if you want
  • Market and Promote Your Café on social media sites and by advertising offline too
  • Create an Attention-Grabbing Website that will include your cafe menus, table booking options, price range, event bookings, contact us button, and some more if you want
  • Managing a Sales System is also an important part for any business including cafe shop
  • Ensure Maintenance and Cleanliness always in your cafe. A clean cafe with proper maintenance will be more eye-catching to the people
  • Customer Grievance and Recovery Mechanism will be a part of your business. You have to take feedback from the customers so that you can achieve more in future
  • Start and Run a Café Shop in India with these checklists.

Also Read: How to Start a restaurant In India

Drafting an Effective Business Plan

You can get a successful business outcome if you plan better in advance. Not only a business plan, but an effective business plan is also a must-have. An effective business plan will consist of “Thoughtful Research”, “Planning”, and “Execution”.

Drafting an Effective Business Plan

Also, you should have a Vision, Mission, Objective, and Profit Goals from the business. You must have a huge investment to get into a cafe shop business. You have to spend time on business planning so that your investment will not go into vain.

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Arrange an Eye-Catchy, accessible Location

A huge populated area with office portions nearby will lead to high earnings. So you have to arrange a location that is easy to access, eye-catching. Try to rent a place on the ground floor for your cafe. Cafes that are placed on the ground floor are more visible and easily accessible to the people. So those cafes can earn more.

Prepare a Mindful Budget that suits you and the area of the cafe

A mindful budget will be a perfect fit for the cafe business. You have to keep in mind that a huge investment is needed in opening a cafe.

Budget

You can go for a business-related loan that helps to open a new business

Also, you should keep in mind the below-mentioned factors:

  • Business Concept
  • Legal and Administrative Cost
  • Location Cost
  • Equipment Cost
  • Labour Cost
  • Construction and Designing Cost
  • Furniture Cost
  • Raw Material Cost
  • Branding Cost
  • Marketing Cost
  • Fixed Cost
  • Any other Additional Cost

Conduct Market Research

Before getting into the business, you have to go through detailed market analysis.

Market analysis will consist of understanding the pros and cons of setting up a business, finding out the competitors of the same industry, ways to increase profit margins, consumer taste and demand, and associating with the best raw material suppliers.

You can try visiting other cafes and restaurants as a consumer to visit different menus, cuisines, and pricing of food items.

Registrations and Licenses are mandatory to start a Cafe Business

There are several Licenses that you have to register with. Those are –

  • Business Registrations
  • The cafe is under the act of Food Business Operator. So the cafe the owner has to obtain FSSAI License
  • Eating House License from the Licensing Police Commissioner of the particular state
  • Trade license of health and trade
  • Fire Security Certificate or Fire NOC from the Fire Department of the state you are going to start the business of the coffee shop
  • Shop and Establishment License
  • Trademark registration to protect your brand from duplication
  • Music License from the Indian Performing Rights Society (IPRS) to play music in the cafe
  • Certificate of Environmental Clearance (CEC) from the Ministry of Environment and Forest is a must-have
  • GST Registration

Robust and Sturdy Equipment that to be bought

Before getting into the cafe business, you need to buy a piece of huge equipment. You should buy new sturdy pieces of equipment that will last long.

Robust and Sturdy Equipment

Equipment list that you have to arrange in prior –

  • Espresso Machines
  • Coffee Grinders
  • Two Mixers
  • Refrigerator
  • Deep Freezer
  • Mop Sink and Installation
  • Mugs/Glasses
  • Commercial Drip Coffee Maker
  • Computer, Printer, and POS system
  • Chairs and Tables
  • Outdoor furniture for waiting list customers
  • Small wares
  • Music System
  • Microwave
  • Dishwasher
  • Display Showcase
  • Internal Displays
  • Outside flex
  • Coffee Beans Inventory;

Appoint Qualified Staffs

To run a cafe you need some trustworthy staffs who will take care of preparing foods, maintaining customer service properly and will be with pleasant mindset.

Qualified Staffs

The types of staff you need –

  • Baristas
  • Servers
  • Chefs
  • Cleaning Staffs
  • Manager
  • Cashier

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Marketing and Promoting Your Café

Social media sites are a boon for new entrepreneurs especially those who are cafe owners. You can promote your cafe through Facebook, Instagram, and any other social sites so that social media influencers and food vloggers can easily check out your cafe.

They can give feedback and reviews so that other people can easily trust and come to your cafe.

Ensuring Maintenance and Cleanliness

A cafe should be cleaned and well maintained so that it can grab the attention of the consumers.

Ensuring Maintenance and Cleanliness

Cleaning should be scheduled on a daily basis even you can go on an hourly basis cleaning work. All the utensils, cutlery, towels must be cleaned regularly after every use. 

Take Customer Grievance and Recovery Mechanism seriously

To get the cafe in a high-level interesting place for your customers, you have to greet your customer well. You should train your Staff to behave properly and handle all the situations.

A cafe should have an aim of customer satisfaction. Hygiene should be maintained in washbasins, toilets. You have to arrange sanitizers, handwashing, hand dryers in a proper manner.

In case, if you are made some mistakes while serving the customer, then try the below-mentioned tips:

  • Provide the customer an Extra offer with food
  • Give High Priority to the Annoyed Customers who are not interested in the service still waiting to be served
  • Give Refunds to the Dissatisfied Customers for the Orders that can be a good gesture to run your business with satisfaction

That’s all you need to know when you want to run your own cafe.

Also Read: How to Start a Tiffin Service in India?

How can Lio help to track the business

Lio is a well-known business-related app that includes features like tracking of sales, orders, business-related information, and much more. You can use this software to maintain a daily basis business information. Lio is full of safety features so that you can easily store your personal business data.

Also, this software is easy to use. You can maintain your daily coffee selling numbers, coffee orders, how much profit you gain in one day or in a monthly basis.

If you want to hire some people who will run your business, you can give them access to your business data through Lio.

So, if you are wondering how to track your business data in a secure way, then we would love to suggest that you should go for Lio.

Lio is definitely for the win and using it for your business is only going to make your journey smooth and easy to track.

Step 1: Select the Language you want to work on. Lio on Android

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Step 2: Create your account using your Phone Number or Email Id.

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Verify the OTP and you are good to go.

Step 3: Select a template in which you want to add your data.

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Add your Data with our Free Cloud Storage.

Step 4: All Done? Share and Collaborate with your contacts.

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Frequently Asked Questions (FAQs)

How much money do we need to Start a Cafe in India?

A minimum of 5 lakhs to 10 lakhs is required while starting a new cafe. If you want to invest more, you can earn more. But as a first-time entrepreneur, you can start with a lower budget like 5 lakhs.

Is Cafe Business Profitable in India?

Nowadays, the cafe business in India is very much profitable because demand is growing.

How do I Start my own Cafe Business?

– Decide The Concept and theme Of Your Restaurant 
– Get Investment To Fund Your Restaurant Business
– Evaluate All Restaurant Costs Involved in business
– Decide The eye-catching Location For Your Restaurant
– Get All mandatory Licenses Required To Start A Restaurant Business
– Get Manpower that you need to run your Restaurant Business
– Design A Stellar Menu with international brand

What do Cafe Owners Earn?

Though it’s variable per person, you can have nearly 5-6 lakhs.

Why do Cafe Businesses Fail?

Poor maintenance, no management, poor financial management can be causes for cafes running in the loss.

Conclusion

So when you are interested to own your cafe with fully satisfying profits, this article will give you the wholesome idea of running a cafe business in India.

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About the author

Surabhi Guleria

10 comments

    • Hello Globin,

      Although it is usually a plus, experience is not required. A coffee shop’s profitability can also be influenced by experience. However, experience is not the only factor that matters.
      To operate a coffee shop, you don’t need any specific qualifications, but it’s a good idea to take training in important areas like catering and food safety as well as fundamental business skills like bookkeeping and marketing.

    • Hello Rishi,

      What an interesting question!
      Approximately 200–300 cups of coffee can be sold daily by an independent coffee shop, while 700 cups can be sold daily by a large chain, according to the National Coffee Association.

  • This article has so much useful information that it is truly wonderful. Thank you so much for your efforts.

  • I’m very interested in this industry and hope to start my own. Your post was incredibly in-depth and included all the information I required. Please give me some suggestions for a decent cafe name.

    • Hello Athulya,

      Thank you so much for your kind words.
      Choose titles that are short and distinctive, such as Sunrise Roast or Coffee Bloom, or something unique and memorable.

      As you think of potential names, make sure to generate four to five ideas. Ask your close friends and family what they think about each of these possibilities so you can choose the most appealing one in the end.

  • Thank you so much for sharing all of this useful information. This has always been my ideal business, I’ve admired the aesthetics it provides since I was a child. You have thoroughly described everything, including how to develop a business strategy. I greatly appreciate it.