A Complete Guide on how to start a Restaurant in India?

how to start restaurant business In India

Every person being foodie must have decided to open his or her own cafe, restaurant to spread the magic of food & taste but is it that much easy?

Here I’m enlightening growth of the Restaurant industry

The market size of the F&B industry which was estimated at 3.7 trillion in 2018 is expected to reach 5.5 trillion in 2022 and the CAGR is expected to grow about 10.4% in the next five years.

The F&B industry is thriving, the industry is continuously growing and evolving so that the restaurant’s trends are changing day by day.
As per a report from NRAI, annual sales in the restaurant industry are USD 783 billion and annual food and beverage purchases are projected to be at USD 279 billion.

How to start a Restaurant in India

Here is a complete guide on Starting a Restaurant in India including the process, required documents, equipment and manpower. in this article, we will cover all.

The following step by step guide will clear your concept on how to open a restaurant in India.

  • Decide the concept of your restaurant/ Business planning
  • Arrangement of funds
  • Calculation of total cost
  • Obtain the required license for the restaurant
  • Get a location for the restaurant
  • Get Manpower
  • Menu designing
  • Go for the latest technology for the restaurant

1. Decide the concept of your restaurant

The first and foremost process of opening a restaurant business is to decide a business idea, which kind of restaurant you wanna open, depends on the budget/ capital you wanna invest in business. You should know how to write a profitable restaurant business based on the analysis of a different kind of restaurants type; fine dining, QSR, bar, cafe and food truck.

After deciding the concept the next part will be deciding the theme, your restaurant structure should match with your theme. Prepare a business plan for the restaurant including all the checklist, make a business plan with exact facts and numbers. A smart business plan is a primary pillar to become a successful restaurant owner.

2. Arrangements of Funds

As per the concept of your restaurant, you must decide the total cost of opening a restaurant in India. Raise funds for the expected expense in all the activities.

If you have enough money in your bank account then you don’t have any problem to start your dream restaurant but if not so then you can go for another way like load or funding for restaurants. Funding includes getting funds from angel investors, it’s quite difficult because they analyse your business potential, profitability and the ability to get business based on your previous venture.

3. Evaluation of total cost involved in the entire process

calculating the cost of opening & managing a restaurant is the primary part that should be done by the owner carefully. There are two types of cost involved food cost and overhead cost. Food cost includes the total amount to be spent on preparing food dishes, and overhead cost includes an amount which is going to spend on kitchen equipment, labour, rent, licence, pos, and other restaurant management software.

4. Obtain the required license for the restaurant

Collect all the legal license required to start a restaurant business, the cost of acquiring these license are vary depending on the size of the venture you’re going to start.

Following are the list of legal license required to start a restaurant business-

  • Trade license from the municipal corporation
  • GST registration
  • FSSAI
  • Professional Tax license
  • Liquor License
  • Business Registration

There are other kinds of license also has to be obtained such as fire, safety, food hygiene pollution in order ensure the smooth running of your restaurant business.

5. Get the location for the restaurant

Selection of the location is an important part of the discussion of starting a restaurant. Before finalising a location make sure to study about the competitors in the particular area and their process.

Location is the main factor in the success of your restaurant. Analyse your competitor in the terms of which kind of restaurant type they own, fast-casual dining, food truck etc and their business model. This will help you to evaluate about customer preferences in that particular area.

6. Get manpower for your business

Hiring the perfect staff is the biggest challenge for the restaurant owner. For this, you can go for the traditional way to an advertisement like we are hiring kind of posters in the newspaper. Facebook, LinkedIn social media platform can be useful sometimes.

Restaurant staff management is also an important part of the smooth operation. Make sure to hire an experienced chef, who has knowledge of the industry and can contribute to menu designing also.

7. Menu designing

What you are going to offer? Yes, deciding the menu is a crucial element that should be proceeded carefully. Include items in your menu that your chef can make with the same ingredient. This will help you with food cost control in your restaurant. 

The menu designing in the restaurant need to be done in a way that can make your customer spends more. Here you can learn about some productive menu designing ideas for your restaurant.

8. Select the right technology for your restaurant

Most of the restaurant owners ignore using the latest technology which is a significant part of running and managing a restaurant in this new age. There are several kinds of automation software for restaurant available which streamlined operational activities of a restaurant in a better way. Restaurant marketing solutions such as POS, Restaurant CRM Software are the game-changer for the new age restaurant owners which help with managing customer data for the highest ROI.

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