A Perfect Guide – How To Start a Restaurant in India – 8 Steps

Visiting this article indicates that you are one of the future entrepreneurs of India because the business of opening a restaurant in India has a very bright future.

Yes, it was quite a critical time while the epic corona pandemic, but nothing is permanent, and it is applicable to the restaurant business as well.

If you are looking for the process for how to start a restaurant in India, let me congratulate you that you are roaming in a perfect area of the internet.

In this article, you will find the exact solution for step by step guide to open a restaurant business in India with proper arrangement of investment.

As an overview, I would inform you that you will need more investment to set up a restaurant business in India anywhere, and it will not give you a very quick return.

So, moving further, we will go through a complete process for starting a restaurants business in India.

Restaurant Business Growth And Market in India

Why India is the best scope for opening the restaurant because India has one of the fastest-growing restaurant industries in the world.

According to NRAI Report, the Indian restaurant industry is expected to touch INR 5.99 Lakh Crores by 2023 with annual compounding growth of 9%.

Yes, it’s quite true, and I agree that a corona pandemic affected much of the restaurant business industry, and it also affected many other business industries.

Pandemics will come and go, but they can damage any business industry permanently which has good potential, and a restaurant business industry is one of them.

By mentioning some business ideas, I tell that starting this business is not a big deal with some points, but I will tell that sentence for starting a restaurant business because it is really a big deal to start a successful restaurant business idea in India.

The reason is not an only investment for the toughness, but you need to take extra care of many sensitive aspects, like the taste of food, serving time, and behavior, different people have different taste choices and you have to manage them.

So, we, as a business mentor will guide you on how to start a restaurant business in India with handling customer satisfaction and make your restaurant business successful, profitable, and scalable with sustainability.

How to Start a Restaurant in India

As I mentioned just above that starting a restaurant business in India is really a big deal, but it will not be a big deal for you if you follow the steps suggested by us.

The very first thing is you have to make the strong mindset that the restaurant business will not give you a quick return, it will take some time.

And not only the restaurant business, any small business idea or a large business idea does not reflect the success overnight. It always takes time to grow and then start returning a good revenue.

Starting a restaurant business needs many important objects like the below listed.

  • Preferred Location
  • Market Research
  • Investment
  • Good Chefs
  • Well communicated waiters
  • Clean kitchen set up
  • Vegetable or meat vendors (depends upon your food niche)
  • Integration with online food delivery apps
  • Customer feedback
  • Enough space for customer
  • Enough required waiting area for customers

These are the basic requirements to open a restaurant, and apart from these, there are other requirements that will be explored in this article later on.

Select a Food Niche For Restaurant

Before starting a restaurant business, it is quite mandatory to select a food category that you want to start, and for that stuff, you need to do proper market research.

Whether you want to start a veg restaurant or a non-veg restaurant, and after selecting it, still there are many subcategories within it.

Chinese food, Indian Food, Punjabi Food, Fast Food, Limited Food system, or unlimited food system, and there are several options that you can pick one or multiple out of them.

It is not mandatory that you have to pick only one, if you have good chefs, you can serve multiple tastes to your customers.

You might have seen that many restaurants are serving multiple categories of food and they are earning well because they have specialized chefs for each type of category.

To select the food niche, you should conduct market research by online and offline strategies as well.

You can search on the internet about what the people are looking for and what they like most to eat in the restaurants.

While doing offline market research, you can visit many restaurants, and observe the interest of the people.

One very important tip I want to share with you is that never adopt a strategy to make more money by serving veg and nonveg food in a common restaurant.

What Location Should You Choose For Restaurant Business

If you ignore a proper location for starting a restaurant business, in spite of expert chefs, well-communicated waiters, and attractive infrastructure, you will not make enough and expected revenue from the restaurant.

When selecting a location for the restaurant start-up, you need to analyze the engagement of people over their area.

If there are some other restaurants around that location, it is quite beneficial for you, because customers will get more options for their choices.

Moreover, customers will be able to compare the price, service, taste, and quality of your nearby restaurants with yours.

So, if you are good in all aspects than others, you will get more customers from other restaurants as well.

The road touch location is one of the best locations for opening a restaurant business and talking about the other best locations, the crossroad, entrance of a high reputed street are some best location for starting a restaurant business.

Investment For Opening a Restaurant in India

Investment is a crucial aspect for opening any physical business anywhere, and that’s why many people give up before starting.

Opening a restaurant business will require a huge investment even if you want to start a small restaurant.

It includes a clean kitchen setup, chef’s salary, attractive infrastructure along with dining tables and chairs, kitchen appliances, serving appliances, space rent, marketing cost, and other misc. recurring expenses.

You have multiple options to arrange the investment for opening a restaurant in India, but you might have a quick question is that how much does it cost to open a restaurant in India, right?

See, it depends on which kind of restaurant you want to open, hence, according to a general observation, you might need Rs. 5 lakhs to 1 crore to open a restaurant.

This amount can be more or less depending on many other factors, like location, area, chef salary, selection of infrastructure quality and design, and all that.

So, if you want to open a small restaurant with enough kitchen and service appliances, a good expert chef, and attractive infrastructure, you need at least 5 lakh rupees in your hand.

If you have your own saving, then you can use them, or else you can make the partnership with someone who is willing to start a restaurant business.

And if you don’t want to adopt the option either of both, you can go for the business loans or funding agencies.

Selection of Proper Name For Your Restaurant

I remember a very famous said: “what is in the name”, but in the business world, a name impacts a lot.

You should choose a name that leads your business, and its nature with an attractive tagline.

Flipkart is the best example for the taglines, it changes its tagline according to situations in India.

While selecting a proper name for your restaurant business, you should take care that it’s not covering the outer aspects.

It means you can choose the name Pizzini pizza, Kabir’s kitchen, so, that are representing the restaurant nature, and someone could judge that it could be a restaurant or food truck or a small street stall.

You can take the help of online free business name generators which will suggest you the best name according to your business niche.

Required License

The restaurant business is directly attached to people’s health and safety, your restaurant contains fire, and gas as well, that’s why you need some important licenses from the government and related authorities.

You will need approval from FSSAI which is the Food Safety and Standards Authority of India, that authenticate your foods are eatable and harmless for the health.

Nowadays, you can apply online for an FSSAI license with required documents and formalities.

There are many mediators who are rapidly active to get the FSSAI license for their customers, you can also contact them to get the FSSAI license in a few time by paying them some amount as their fees.

The next one is the Eating House License which you can get from the website of your city or state licensing policing commissioner.

While applying for an application online for the eating house license, you will need to upload some documents mentioned on the site and it will cost Rs. 300.

If you are serving the liquor along with the meal to your customers, you can not do so without obtaining the Liquor License.

The serving of Liquor without having a Liquor License is strictly prohibited, and you may be penalized for it.

You will have to research more for getting an appropriate Liquor License, because there are many kinds of licenses regarding this, and it depends on your nature of business.

It depends on whether you are serving an international brand of liquor, or Indian-made liquor, or and imported liquor.

In order to get this license, you will have to submit an application to the State Excise Department along with the required documents.

The next one is the Fire Department NOC for your restaurant business because your restaurant includes the gas cylinder, ovens, and other fire-sensitive appliances.

You can get the Fire NOC by submitting an application to the Chief Fire Officer before you start a restaurant business.

Arrangement For Waiting Customers

Many times it will happen that your restaurant will get more customers, and they will have to wait for their turn.

So, you must schedule a proper arrangement for those waiting customers in your restaurant, hence, this is not mandatory, but it creates a good impression of your restaurant on the customers’ mind and increase your restaurant’s reputation.

You should reserve some area for the awaiting customers who can spend the waiting time there, and if possible, you can put a hanging television there also, so customers can get entertained.

Well Communicated Watiers

Sometimes it happens that we do quality compromise to save some cost, and lose the center pointed potential of our business.

Customers like a good taste and quality of food, good service, and good behavior also.

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