How To start Restaurant Business in India

how-to-start-restaurant-business-in-india

How to Start Your Own Restaurant Business

Friends, today we will tell you how to start Restaurant Business in India, and the necessary information for starting a restaurant business. So let's find out now about the restaurant business.

Nowadays people's lifestyle has changed a lot, and now people are very busy because as many people are going out and working, it is becoming a problem for them to cook at home. And that's why restaurants play a big role here. And all those people or investors who are thinking of investing in a business like restaurants will be able to increase the profit of their business in the future. 

And if you don't pay attention to any thoughts, then you will think that the restaurant business is a beneficial business. And if you are thinking of starting a restaurant business, or are in the process of starting your first restaurant, then this post is for you. And those of you who are not thinking of starting a business like this can also read this post to know what things you need if you want to start a restaurant business. And today we will let you know in this post how to open a restaurant? What else do you need to keep an eye on, and how do you make your restaurant popular? Then you can read our entire post to know all this information. So friends, let's get started and find out some important facts about the restaurant business.

What is the future of restaurants in India?

The Indian restaurant market is the fastest-growing market in the world. According to the NRAI (National Restaurant Association of India), Indian restaurants will achieve a growth of around Rs 6 lakh crore from 2022 to 2023. So friends, according to this report, you can understand the demand of restaurant business in India and how this restaurant business will give you profit. So let’s get started friends and let us know how you will start a restaurant business in India.

1. Clear the concept of your Restaurant

When you start a restaurant, you need to calculate how much profit you expect from this business. And there are some things to keep in mind when deciding. Such as -

  • How much capital do you have to invest in this business?
  • How much return will you get from a customer?
Once you think about it and decide that you need to open a restaurant, you need to start the process that is necessary to make your restaurant theme and other things a restaurant business.

2. You need to have a proper business plan for your restaurant business.

You need to create a proper plan for your restaurant business, and we'll practice this later in our post. Because that will help your restaurant business to make a profit in the future.

3. Raise funds to start a restaurant business.

Most people can't fulfill their dream of opening a restaurant because they have less money. And when you think about opening a restaurant business, this is one of the important things.

  • First of all, clear the concept of your restaurant
  • How much budget would it take to open your restaurant
Once you are clear about how much funds you need, you can follow these steps to raise funds so that you can open the restaurant of your dreams.

Self-funding

congratulations if you have enough funding, because if you have enough funding then you have crossed the first hurdle of opening a restaurant. And starting a restaurant business with your own capital is a good way because it reduces your risk of investing. And try to have more money to invest, so that you can borrow less, and have all the profits.

You can take a loan

if you have fewer funds, you can take a loan, and if you want, you can also raise funds from your relatives. But the biggest problem with both these methods is that you have to pay interest or return all the money with their profit at a fixed time.

Cost calculate

Calculate all the costs, calculating all the costs of the restaurant is necessary to run a restaurant well. Unless you calculate the total cost, you will not know how much the next cost will be. And if this happens, again and again, it may be difficult to run a restaurant later. And this cost is very common in every restaurant -

  • Food cost - food cost - The price of all the raw materials needed to make a food dish.
  • Labor cost - Labor cost is one of the highest costs, and it is needed for restaurants. One of the biggest expenses that come later when opening a restaurant and running a restaurant.
  • Overhead costs - Overhead costs are different from these, it is not like any food or labor. And there are many things involved in this cost such as -
  • License - License is required to open your restaurant. Licenses depend on many things, such as what area your restaurant is in.
  • Marketing - You need to spend 1% -2% of your entire profit on marketing your restaurant. Doing so will let a lot of people know about your restaurant and come to your restaurant.

Apart from these, there are many other costs such as -
  • Rent
  • Kitchen equipments etc.

4. Decide the location of the restaurant

To start a restaurant business you first need to know in which area or location you want to start your restaurant business. Because your location will decide how you can make a profit in your restaurant business.

When choosing a location for your restaurant business, you need to gather some more detailed information, such as -
  • How many other restaurants are there in that location? 
  • How many people are there in that restaurant every day?
  • What is the profit of the restaurant?
  • competitor's profit.
  • What strategies do your competitors use to reduce profits?
  • The demand for any food in that area is high.
If you look at your competitor's menu, you will know which items are sold more in that area and which items are in high demand.

And knowing these, the location of your restaurant needs to be such that your restaurant can be easily seen by people. It would be best if you open your restaurant right in front of the main road, and it will catch the eye of many.

You have to take NOC from the people around the location you choose to open the restaurant. NOC is not taken in small towns, but in many places, there are rules for taking NOC.

5. License required for restaurant

You need to get a license from the government to open any restaurant in India. What kind of license you need to take will depend on the size of your business. If you have selected the location and completed all the other processes you have, then you should apply for the permit as soon as possible as this application takes a long time to be approved. The licenses required to start a restaurant business in India are -

  • Trade license - Depending on the size of the restaurant, it costs around Rs 10,000 to Rs 1 lakh. Although for small restaurants the amount is around 5000 to 10000. The license is issued for a financial year. This license has to be renewed in March every year.
  • Fssai - To open a food business in India, you need to get this Indian Food Security License. This is the size, turnover, capacity, location, etc. of your business for the Fssai license. You may have to pay around Rs 5,000 to Rs 10,000 for all the costs.
  • GST registration - You need to register for business and get a GST number. You will need to register GST separately for each state.
  • Professional Tax License - You need to get this license to keep any staff in your restaurant. All your staff salaries above Rs 10,000 will be included in this tax.
  • Liquor license - The most difficult thing to get a liquor license. You should apply for a liquor license as soon as possible, as there is a lot of time to approve this license.
  • Business registration - You need to register your business with a partnership firm or other registration process from your business.

There are many other licenses that are required to open a restaurant such as -
Having the right manpower to do restaurant business in India is a positive aspect of growing your business. Many times we hire the wrong people and that's why our company's name has gone bad in the eyes of others. And this is when we are talking about opening a restaurant, if we do not hire the right staff here, you will have to face a lot of losses.

Most people hire staff from their own source or at the suggestion of family or friends. But if you are opening a new business or improving your old business, you can advertise in the newspaper, or hire people through an agency. Or if you say you want to do these for free then it is very easy, because you will get social media options here. You can also hire people with the help of social media.

Now everyone is active on social media. You can look for it on social media like Facebook or LinkedIn and you can use Instagram.

How many types of staff are there in the restaurant?

A restaurant usually requires three types of staff -
  1. Kitchen staff - The kitchen staff consists of cook's, support staff, etc.
  2. Service staff - This staff is waiters. The waiter deals with the customer so Waiter's language needs to be good.
  3. Management staff - This staff is the restaurant manager, restaurant cashier, store manager, etc. All of this will be good for you if you are educated and have a fresh mind.
You just have to be more discriminating with the help you render toward other people. As soon as your chef prepares the food, someone designs the menu for your restaurant. And it attracts your customers to your food. For this, you should have a good chef in the restaurant.

Before you start your restaurant business you need to train your employees about their work, and also tell them how they will serve your customers.

7. Design Menu for your restaurant

The real identity of any restaurant is in the food and menu of that restaurant. So before you start your restaurant business you need to design a menu. Smartly designed menus affect the price of food in your restaurant. And the menu needs to have items that can be made quickly, and the raw material of that food is easily available in the local market. And the menu needs to be designed in a way that will attract customers and motivate them to spend more. And you need to include in your menu the foods that are in high demand in the local area where your restaurant is located. You will make a special item in your restaurant that will help to promote your restaurant.


So friends we hope that the information we have given you about this How To start Restaurant Business in India will be useful for you. And the only purpose of telling this story to us is so that you can be in Inspire. And subscribe to our website to get such post time to time updates. And comment and share to increase our enthusiasm. Thanks for reading our full post.