How To Start A Best Restaurant Business In India- Complete Information..

Restaurant Business. Nowadays people are starting different types of businesses and are moving forward. But is it right to start the same business as everyone else? So let us tell you about a different business today and that is the restaurant business. The restaurant business is considered to be a world-famous business not only in India. So if you are also thinking of starting a restaurant business, then we are going to give you complete information about this business and also tell you how to start a restaurant business.

Restaurant Business

Restaurant Business In Indian Market

According to the report of the National Restaurant Association of India (NRAI), It is expected to reach Rs 5.99 lakh crore by 2022-23, growing at a compound annual growth rate of 9 percent. The Indian restaurant market is one of the fastest-growing markets in the world. Opening restaurants shortly will bring many new opportunities for budding restaurant owners.

Let us know the main topic which is how to start a restaurant business in India.

Restaurant Business

How To Start A Restaurant Business In India

Now let us know step-by-step full guidance about starting a restaurant business startup.

1. Prepare The Idea Of  Your Restaurant

The first of all thing to keep remembering about preparing a complete idea before starting. Like the amount of capital for investment, The Average Price per Customer (APC) {is the average amount of money a customer would spend in your restaurant}, interiors and restaurant theme, etc. Planning the concept will help you plan for the future growth of your restaurant business and present it to potential investors.

2. Fund Your Restaurant Business

The first thing you must finalize is how much capital is required to start a restaurant in India. This is one of the most important things to consider when you think about opening a restaurant business. But there are another three methods reserved through which you can raise money for your restaurant business:

Self-funding: Having enough money available in your bank will solve the first thing about the hurdle of opening a restaurant. Opening a restaurant in partnership can reduce the risks of investment.

VC/Angel funding: Investors typically look for the growth potential of your restaurant venture, the quality, and the scalability of your business model. The performance of your first few outlets is considered before they agree to invest in your business. Getting investors on board can be difficult, especially if your venture is a first.

Loan: If you have a shortage of money then you can have a loan for you to invest in your restaurant. Getting a loan from a bank can involve hassle as they look for collateral or someone who can underwrite the loan.

3. Restaurant Costs

Restaurant costs are a significant part of running a restaurant and need to be assessed and planned carefully. Some significant costs in starting a restaurant business involved, Food costs, labor cost,s and Overhead costs (including Rent, interiors, kitchen equipment, Licenc,e and also marketing).

4. Decide The Location For Implantation

You must decide the perfect location for your restaurant business, it can determine the success of your restaurant. Competition should be assessed not only in terms of cuisine but alsbased onof the type of food they offer to their customers – casual food, fine dining, QSR, etcTwo factors canan help you decide the best location for the restaurant business.

Visibility and accessibility: The location of the restaurant should be easily visible and accessible. Upper-floor locations are generally not considered suitable as they have less visibility, and are also difficult for customers to locate. A restaurant right across the street and on the ground floor tends to be more crowded.

NOC: You will also need a No Objection Certificate (NOC) from at least three of your neighbors before you open your restaurant.

5. Get All Necessary Licenses

You need to have all the necessary licenses for opening your restaurant. The cost of obtaining these licenses varies on the size of your venture. It is advised to apply for permits early, as they can take a long time to get approved. Some significant licenses you’ll require are given below:

Trade license from the municipal corporation: Varies on the size of the restaurant, the cost ranges from Rs 10,000 to Rs 1 lakh. The actual license fee for a small restaurant ranges from Rs 5,000 to Rs 10,000. Licenses are issued for one financial year and require renewal every year in March.

GST Registration: The restaurant has to register under GST and obtain its GSTIN number. GST registration is state-specific, so if your restaurant has outlets in different states, you will need a separate registration for each state.

FSSAI: To operate a food business one needs to obtain a license from the Food Safety and Standards Authority of India (FSSAI). The size of your enterprise, turnover, installed capacity, location, etc are the factors to get an FSSAI license and the cost is around Rs 5000 to 10000.

Professional Tax license: You need a professional tax license to employ salaried employees. It is payable every month to all restaurant employees with an income above Rs 10,000.

Liquor License: Getting a liquor license is one of the trickiest and also quite expensive.

Business Registration: You need to register your business as a partnership firm or a private limited company. You will need to file annual returns, account for your finances, etc. Hire a CA to help you with the economics of your business.

6. Manpower For Restaurant

While running a restaurant business in India, hiring and retaining the right talent is one of the biggest challenges. As a first-time restaurateur, you can hire the traditional way: set an ad in the newspaper, put up a ‘we’re hiring’ poster, or hire through agencies. There are also so many groups available on social media like Facebook and Linkedin, from where you can source talent.

Three main types of staff you may require Include, Kitchen staff, Services Staff, and Management Staff (restaurant manager, chef, cashier, store manager, etc). Hiring the right chef is extremely important for your restaurant as your food is what’s going to attract your customers. An experienced chef is a must for your restaurant. Before starting a restaurant business, you must remember to train your employees not only about their jobs but also about how they should serve their customers to provide excellent customer service.

7. Design A Stellar Menu

Designing a stellar menu is the next right step. A cleverly designed menu can make a significant impact on your restaurant’s food costs. The menu should include items that can be prepared quickly and made using local or readily available ingredients. The menu also needs to be designed in a way that would attract customers to spend more. You should decide the cuisine you want to serve and choose menu items based on the demands of the audience.

8. Arrange Suppliers & Vendors

You must have at least two-three vendors for the smooth functioning of your restaurant. This would help compare prices, and will also serve as a backup in case some problem comes up with one. For emergencies, you must always have two days’ worth of stock in your inventory. All items should be checked properly in with both qualities and quantities every day in the morning and at the closing time of the restaurant. You should have long-duration contracts with the vendor for maintaining the consistency of your raw materials, and check the Trade Identification Number (TIN) of the vendor before you give him your restaurant’s supply contract.

9. Marketing And Promotions

You should mainly focus on marketing and promotions to be aware of the transformational power of hospitality. Building solid customer relationships and providing a remarkable dining experience will set you apart from the competition. Developing your restaurant’s marketing strategies is the right place to start.

Some ways are given below for the perfect Marketing Strategy for Your Restaurant:

Create A Brand Identity: the character of your company, its voice, and the feelings you wish to arouse in your audience are all identified due to your Brand Identity. You can then continually incorporate your brand identity into your marketing communications to keep your message consistent.

Build A Website: According to a study, 22% of customers want a menu on a website rather than going restaurant. Customers can review the menu including food and drinks provided by you on your website. Also include images of your restaurant, preferably during a busy night when both your staff and your guests are having a good time, so potential customers can get a sense of the vibe.

10. Install Right Technology At Your Restaurant

Some businessmen used to ignore the best technologies to provide in their restaurants and that is the almost last and main thing that should be on focus. Installing good features and technologies also attracts customers to feel comfortable while eating. You should properly maintain your restaurant to increase your customer count.

Final Words

Having your own restaurant business will make it easy for you to reach great heights. You just need to pay attention to all the things that you have mentioned above in your restaurant. And we hope that our given information will help you in starting your own restaurant business. Thanks!

Must Read: 




How much growth recorded in Restaurant Business in Indian Market?

India is the fastest-growing business in India. According to the report of the National Restaurant Association of India (NRAI), It is expected to reach Rs 5.99 lakh crore by 2022-23, growing at a compound annual growth rate of 9 percent.

How to start a restaurant business in India?

There are some steps that should be followed for opening your restaurant business.
1. Prepare the idea for a restaurant
2. Funding
3. Restaurant costs
4. Decide the location for implantation

What are the most simple ways to fund your restaurant business?

Self Funding, VLC/Angel Funding, and loans are the ways to fund your restaurant business.

How many types of licenses are there important for a restaurant business?

Trade license from the municipal corporation, GST Registration, FSSAI, Professional Tax license, Liquor License, and Business Registration License.

शेयर करें:

Leave a Comment