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How to Start a Cafe in India [Cafe Business Plan India]

Updated: Aug 17

People think opening a cafe is an excellent way to make money now because it gives people who like to eat out often and socialize a great place to go. Also, most cafes try to keep their menu prices low. So, this choice is good for all kinds of people, especially young people who depend on their monthly pocket money. This makes it very profitable to open a cafe if you do it right. Hence, many aspirants are willing to figure out how to start a cafe in India.


When opening a cafe, the first thing a business owner should do is get help from professionals who have a good track record of starting cafes and restaurants. People who are passionate and honest about their business policies can tell entrepreneurs if their business will be successful or not.


But, if you don't have people like that or don't trust them enough, this is the right article for you. It's a handsome guide on how to start a cafe in India and run it successfully. We will also try to guide you about making the best out of the cost of opening a cafe in India.

cost of opening a cafe in India


How to Open a Cafe in India: Cafe Business Plan in India


Location

Choose a place that is good enough for what you want to do. Decide if you wish your cafe to be near colleges or parks or on the edge of town. If you want to stay within the low cost of opening a cafe in India, don't choose a place that is fancy or very popular. There, the rent will be expensive.


The most important thing to do when selecting a good place for the cafe is to talk to the regional planning board about the grade of the plans and find out if they can impair the business in any way. Finally, pick a place with enough room for parking.


Choosing what goes on the menu

Before you open the doors to your cafe or even learn how to start a cafe in India, you need to make a menu and decide what will be on it. On a cafe's menu, there should be different kinds of coffee, drinks, sandwiches, and snacks. For example, you can serve food that is already made, like sandwiches or baked goods, or fast food, like burgers, that only needs to be cooked or heated at the end.


Also, try adding different things to your menu. If you do this, you'll have the edge over your competitors, which will make customers more likely to choose you over them.


Also, read - What is Menu Engineering?


Experience

It's vital that the owners of a cafe have worked in the business for at least two to three years. Entrepreneurs need to know a lot about how things work, and having worked in different positions can help significantly in this regard. They also need to know very well how to segregate the cost of opening a cafe in India in various aspects of the business.


Costs

If you want to keep the costs low, you can start the cafe business with your own money. You can also ask family and friends to put money into your business. But to do that, you must devise a business plan describing your cafe's ideals, notions, mission, and purposes. You or your investors can also go to banks and ask for loans to help your business reach its goals.


Also, read - 12 Food Business Ideas in India [With Low Investment]


Deals and paperwork to rent

The price is the most important thing to consider when deciding on the terms of a lease. The agreement could also make it difficult for the business to grow. It would be better to talk to a lawyer about these issues.


Hiring

It's clear that a good cafe and good service come from having good employees, so it's essential to hire the best people. If you have the right people in the right places, your customer service will be better, which will make your customers more loyal. Don't worry about the budget when it comes to recruitment.


Instead, hire people who are well-trained, on time, and passionate about what they do. It's important to hire smart people to work in a cafe because everything depends on them, from the first impression to sales, quality, and cleanliness.


Tools, appliances, and furnishing

If you own a cafe, you'll need to buy appliances like stoves, refrigerators, freezers, and coffee makers. You will also have to pay for chairs, tables, etc., to sit on. But, even if you want to pay a little cost of opening a cafe in India, you cannot strike this one off. You can try some simple, authentic, and Indian themes for that. It will make your cafe look different and save you money.


Permits

If you want to work in the food industry, you must remember that you need to get a few permits before opening a cafe. On the list are things like an electrical license, a fire license, a health permit, a sanitation permit, a waste permit, and so on. In addition, if you want to serve wine and beer, you will also need an alcohol permit. So before you start your business, you should never ignore this kind of work.


Also, read - What licenses are needed to start a restaurant in India


Structure

The cafe should be opened in a small space first; if it does well, it can be made more expansive. However, if the cafe has ample space and the tables aren't always full, it will be hard to keep up the whole structure and would have already increased the cost of opening a cafe in India. It's also essential to make sure the tables can be moved around to fit bigger groups. The tables should be big enough to fit between four and six people.


Your staff needs continuous training

This will ensure excellent customer service and help your staff understand your goals. Teach the staff about the menu, the categories of customers, etc. You can give the staff a training handbook. This would be very helpful for them and help them even in your absence.


You can also teach your staff the basics about each department. This will make them work better, help each other and thereby improve the efficiency of the unit as a whole. Finally, always keep an eye on the staff and ensure they're doing what they've been taught.


Marketing and advertising

If you don't start marketing your business until after it's already open, you're already behind. You need to get the word out about your cafe and let people know about it before you even open it. Tell people what you're going to make and give to them. Take some great pictures and put them on your business page or social media. You can also send your ads to different media outlets so people can find out about you.


Establish cash and sales workflow

Customers often use cards to make payments these days, so cafe owners should have a card machine and be able to accept them. If they don't already have QR codes for online payments, they should get them right away. Also, it's better to use Cafe POS software to determine how much money your café makes and how much it sells. It can also show how well different things sell.


So, this is how to start a cafe in India even if you have a small budget. Moreover, having good interiors and places to take pictures is crucial since millennials love to take pictures. And when they tag you in their social media posts, you get more advertising. Also, don't forget to use surveys and customer feedback to improve your services.


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