How to Open a Restaurant in India - The Complete Guide
Updated: Aug 4
Opening a restaurant in India can be a daunting task, but it is certainly possible with the right planning and execution. There are a few things to keep in mind when opening a restaurant in India, such as:
Type of cuisine you want to serve
Location of your restaurant
The target audience you want to reach.
One of the most important factors in opening a successful restaurant is choosing a good location. Consider the foot traffic in the area, the competition, and the demographics of the surrounding area. Once you have found a location, you will need to build or renovate the space to meet your specific needs. Finally, you will need to hire staff and get all required licensing done.
You have to decide on your cuisine as there are many different types of cuisine popular in India, so it's important to decide on the type of food you want to serve. This needs some deep research. Also, they include a range of purchase supplies, a restaurant equipment list, and also vendor list for providing timely groceries.
Fret not, we have got you covered on the basics and everything you need to know how to start a restaurant business in India.
If you're planning on opening a restaurant in India, here are a few tips to get you started:
Opening a Restaurant in India (Step by Step Guide)
1. Decide on the type of restaurant you want to open
Before we discuss the details of opening a restaurant in India, you should have clarity on the type of food you want to serve and the service style of your restaurant.
As you determine your purpose and vision for dining, you can choose from the following options:
Casual dining restaurants
Fine Dining restaurants.
Food carts/ tracks.
2. Cost of Opening a Restaurant in India [Evaluation]
After planning on the type of cuisine, next, you need to evaluate the cost involved to start a restaurant in India.
Make sure you categorize your business costs such as:
Food cost: Major part of costs monthly goes into getting your food supplies from your vendors. Engage some well-known food suppliers to lower the cost and guarantee a constant supply.
Labor cost: Depending on the number of employees you hire and the amount of experience they hold, labor cost also takes a huge chunk of your total expenses.
Rent: The cost of rent depends on the kind of location you choose for your restaurant. Of course, running a restaurant in a prime location has an added advantage of the increase in customer visits which also comes with a huge rent cost.
Restaurant Kitchen Setup Cost India: Although the cost of buying quality equipment may seem high, it always pays off in the long run.
Licenses and legal permissions: Proper paperwork are essential to running a smooth restaurant business. The Licenses vary according to the type of restaurant you want to set up.
Marketing: Nowadays every business needs an online presence to flourish. Restaurant businesses are quite competitive and keeping your base online with positive reviews and good customer acquisition is always a win-win for your business.
3. Get the funding required for your business -
Undoubtedly, starting a restaurant is a costly affair. Setting up a decent size restaurant costs anywhere between 15 lakhs to 1.6 crores depending on the location, type of restaurant, menu, and other factors.
3 ways you can try getting funds for your restaurant:
Self-funding: When you have the amount of money to invest in a restaurant business, then you have crossed the biggest hurdle. The most important factor of the business is taken care of.
Loan: You can do the necessary paperwork and get a loan for your restaurant business.
Funding from investors: Getting investors can be a difficult task, as investors usually check the track record of your business revenue over the past few months. As mentioned, it is a bit difficult for first-time ventures to get funding from investors.
4. Licenses required to open a restaurant in India
Having proper licenses and paying your taxes on a timely basis will ensure your restaurant business runs smoothly. The cost and type of licenses vary according to the size of your venture. To ensure timely approval of the permits, it is advisable to submit your application early.
5. Get Manpower for Your Restaurant Business
Choosing well-experienced staffs are necessary as the success of your business depends on the quality of service your staffs provide to the customers. Hospitable managers and extra caring staff, and experienced chefs will add value to your business.
You can hire the employees by checking online portals or putting advertorials in newspapers and wall posters. Social Media like LinkedIn and Facebook is widely used for finding such employees.
6. Design A Stellar Menu
Having a well-designed menu can significantly impact your business's success. The menu should be created with the best designers and experienced chefs, keeping in mind your customers’ requirements. Appetizers, side dishes, and everything extra other than the main menu should also be considered as you do not want to disappoint your loyal customer base.
The menu should also include a wide range of easily cooked dishes so that you can keep them engaged while their main menu arrives. Speaking with your chefs and coming up with fusion dishes is a great way. Introduce exciting ways of food presentation.
7. Arrange Suppliers & Vendors for Your Restaurant
Having 2-3 vendors in each category of your supplies ensures the smooth running of your business. This will help you to compare the prices, and also serve as a backup if any problem arises. Make sure you have all your kitchen equipment of top quality. It may cost you much higher but will sustain you in the long run.
Providing fresh food at a reasonable price should be a priority. Using quality ingredients will result in delicious dishes that will attract more customers.
8. Take care of your delivery process
Your customers should remember your food even when they are not able to visit your restaurant. And for that, you must provide home delivery services.
Having a good food delivery service has always been essential to the success of a restaurant.
You need to decide the items you want to deliver as a service. Since some foods get spoiled relatively faster. It would be a good idea to remove those from the delivery menu.
You should also consider the area you cover for your delivery services. Too long distances will not get you any returns. You can either hire your delivery team or partner with delivery services such as Swiggy and Zomato. Hiring your delivery team gives you an added advantage of having control over your team, unlike delivery services where you are bound to pay a pretty high percentage for each sale you make.
9. Marketing and Promotions
Running a restaurant business is a very competitive field and you can make your mark only by having a good online presence. Customers need to be aware of your presence on social media. For that, a great marketing strategy is required. Every successful business is run by a solid online presence.
This concludes the steps involved in opening a restaurant in India. Starting a new business and running it successfully is a big task. But when you have a clear plan and the proper manpower, the process becomes manageable.
10. POS system
We can’t think of a restaurant business without a Point of Sale system nowadays. This computerized system allows restaurant owners to track everything related to their business. POS software can be used for billing, payment, printing KOTs, inventory, and managing the customer database.
By considering the above points while starting a restaurant, you will be able to structure your ideas and ensure nothing is missed.