In India, starting a restaurant business is a lucrative prospect. It is also one of the most popular enterprises among young entrepreneurs. However, it is not an easy task. The goal of writing this post is to provide a step-by-step guide to starting a restaurant in India with useful information. In general, this article addresses an example business plan or project profile format with startup cost.It also covers the most important components of launching a restaurant business, such as market, location, interior design, and staffing.
The restaurant industry is essentially a subset of the food retail sector. According to industry experts, it is currently worth Rs 75000 crore. It is also increasing at a 7 percent annual rate. Quick service restaurants, casual dining, cafes, and fine dining are among the fastest growing segments. Apart from them, pubs, bars, lounges, sports bars, and clubs are becoming increasingly popular.
Starting a restaurant business is a highly profitable possibility for entrepreneurs in this scenario. However, it is a tough profession. It takes a lot of commitment, long hours of hard labor, solid preparation, and a willingness to face start-up problems. Also, you can check restaurants business listings India to get more info about restaurants.
8 CRUCIAL ASPECTS IN STARTING RESTAURANT BUSINESS IN INDIA
1. DECIDE THE RESTAURANT STYLE
This is the first step you must carefully evaluate. Because the subsequent actions are dependent on this precise decision. The precise restaurant type you choose is determined on your financial capacity as well as the eating habits or preferences of the local demography. After agreeing on the concept, you can decide on the menu, interior motif, seating style, and so on.
2. FRANCHISE OR OWN BRAND
There are many national and international brands that are currently giving franchise opportunities across India. Starting a franchise business is unquestionably easier than starting your own. However, establishing one’s own brand confers significant advantages.
You do not have to split profits if you start your own brand. Furthermore, there is no need to pay a franchise fee. However, you will need to create your own SOP and be responsible for all aspects of promotion.
3. CRAFT THE BUSINESS PLAN INCLUDING STARTUP COST
The parent firm will supply you with a cost structure when you start a franchise shop. However, in order to launch your own brand, you must create a project report. The most important aspect of this firm is financial analysis. Some of the primary costs are given here.
a. COST OF THE VENUE
It is the most expensive item in this business. You must factor in the cost of power, water, and maintenance when calculating the rent (if any).
b. INTERIOR COST
The interior must be decorated in accordance with the restaurant’s theme. Flooring, wall décor, ceiling, air conditioner, lighting, music, and eventually furnishings are all included.
c. KITCHEN EQUIPMENT
You will need to organize the kitchen gear and equipment. It could include several crockery sets, stoves, storage, refrigerators, microwaves, and other appliances or utensils.
d. LICENSING, PERMISSION & OTHER PRE-OPERATIVE EXPENSES
You must compute the pre-operative costs, which include licenses and permissions. It also covers consultancy and government expenses.
Without the assistance of technology, you will be unable to run the business successfully. You will require a bespoke POS software system to keep track of daily bookkeeping, stock inventories, and so on. As a result, you must assess the cost of acquiring the POS.
4. ARRANGE THE FINANCE FOR THE RESTAURANT BUSINESS
After estimating the start-up budget, you will need to secure financing for the restaurant’s opening. If you are a first-generation entrepreneur, you should start the restaurant with your own money. You can, however, ask for a bank loan or venture capital investment. Typically, banks request collateral security. As a result, you must make that arrangement.
Angel investors, on the other hand, are interested in profit possibilities, expansion plans, and business models. And once you’ve satisfied these criteria, you’ll be able to get the money. You can also open the business as a partnership to seek financial assistance.
5. LICENSE & PERMISSION FOR RESTAURANT BUSINESS
To begin with, the specific license need is determined by the location of the business. However, some of the standards are universal in India. We’ve compiled a list of the most important license and permission needs.
a. BUSINESS REGISTRATION
Registration of a business is required. In addition to operate the restaurant as a sole proprietorship, you must register the company as an LLP, Pvt. Ltd, or Ltd Company.
b. PROFESSIONAL TAX REGISTRATION
A professional tax registration is also required. You can pay the tax on a quarterly or annual basis.
c. GST REGISTRATION
To obtain a GSTIN number, you must first register with GST. Then you must apply for each site.
d. TRADE LICENSE
Obtain a Trade License from the Municipal Authority in your area. It is unavoidable. This license can only be issued by the local corporation.
e. FSSAI REGISTRATION
Food Safety and Standards Authority of India (FSSAI) registration is required for every restaurant or bistro operation.
f. LIQUOR LICENSE
If your restaurant serves alcohol, you will need to obtain a liquor license. It takes a long time to obtain a liquor license. It is also costly.
g. TRADEMARK REGISTRATION
Registering the logo as a trademark protects it. To begin, you may use the TM mark. You can also use the R symbol once you have received your final registration.
6. SELECT A LOCATION
The total success of a restaurant is heavily reliant on its location. The metro cities of India are the greatest places to start this business. Mumbai, Bangalore, Delhi NCR, Pune, Kolkata, Chennai, Hyderabad, Goa, Ahmedabad, Indore, and other cities are among the most promising.
The importance of broad visibility in the restaurant industry cannot be overstated. Attempt to occupy a place on the ground floor as well. It does not, however, apply to find dining or food court restaurants. These days, having a parking facility is a necessary. Finally, you will need to obtain a commercial property and a NOC from your immediate neighbors.
7. CRAFT THE MENU AND TARIFF
You must create a menu and price based on the restaurant concept, style, and taste of the local demography. Keep some basic food products beside fancy items. You can also provide a combo or Thali-style meal, which is highly popular in India. Try to keep meals that require comparable ingredients to cook together. It aids in the reduction of inventory costs. Also, create foods that require ingredients that are easily available in the local market.
8. ARRANGE QUALITY SUPPLIERS
Having fresh ingredients delivered to your door on a regular basis is critical for a seamless business. Ascertain that the vendors give high-quality, up-to-date supplies for restaurant use. Check the price for the bulk buy as well. In each segment, try to have at least one vendor.
Why you should consider Restaurants Business Listings?
Now another important aspect which you should consider before opening a restaurant is checking on the restaurant business listings. Here you can find thousands of other restaurants who have listed their business and therefore you can contact them to learn more about their business.
Best Restaurant Business Listings India Websites
Now we will give you a bunch of Restaurant Business Listings Websites for India where you can list your website to attain more reach.
- Google My Business
- Womply Storefront
Conclusion: For those who are passionate about the restaurant industry, it is unquestionably a self-rewarding vocation. To achieve long-term success, however, proper planning and devoted implementation are required.