20 sureshot ways to increase your restaurant sales

Table of contents
a. Introduction
b. 20 effective ways to boost your restaurant sales
c. How can Foaps help you increase your restaurant sales?
d. Conclusion

The restaurant business is competitive and one of the most popular businesses in India. You have to keep your sales elevated to stay alive in the race. There are some simple but effective tips to increase your restaurant sales. These easy tips will help you make a big difference.

20 effective ways to boost your restaurant sales

Check out these 20 ways if you’re looking to improve your restaurant sales. These methods will help you boost your trade with less money and effort. Your business will grow at a rapid rate if you adopt new strategies and techniques. Along with essential points, you will also learn how to attract customers with innovative approaches. 

1. Never compromise on the quality of the food

The quality of food has a direct impact on the success of your restaurant. Using high-quality ingredients will help you offer delicious food to the customer. In addition, word of mouth from your customers will make your brand popular and attract more customers. Therefore, raising the standard of your food will proportionally increase your sales. 

2. Give high priority to hygiene

People always prefer hygienic places to eat. So it’s very important to keep your restaurant neat and tidy. Hire dedicated employees to clean your restaurant and educate them about the importance of hygiene. Don’t forget to clean the tables, chairs, utensils, and floors regularly. A healthy environment offers an ideal place for people to eat along with their families. 

3. Create a website for your restaurant

Most of the restaurants don’t utilize their website well enough. Having an active website has many advantages. If someone recommends your restaurant to their friends or relatives, the first thing they do is search your restaurant online. So if you have a well-designed website, more customers can be attracted. You can also keep your customers aware of new offers, events, special menu, and so on using your website. Providing such ready information answers a lot of questions customers may have. 

4. Encourage upselling

Upselling is one of the easiest ways to improve your restaurant sales. Upselling is nothing but convincing customers to upgrade their current purchase or buy more items. Restaurant upselling is the most common strategy for restaurants to boost their profits. For that, you have to train your staff to convince customers to buy more items. You can also offer free samples to increase your sales. 

5. Have your restaurant on Google Business 

Always remember to have your restaurant on Google Business.  Getting featured on Google will increase your reach, merely because it will be easier for your customers to find you on the internet. Customers can also get your restaurant’s address and contact details from Google easily. Google Maps also helps customers to locate your restaurant quickly. 

 6. Run your restaurant online and offline

You must run your restaurant online and offline. That is, both online and offline marketing should be given due importance. Not everyone uses smartphones or the internet. You can attract some aged citizens by distributing flyers and pamphlets. Some people still follow hoardings and read newspapers and pamphlets to keep themselves aware of the new restaurants in town. So offline business is as important as an online business. You must keep a balance between them to boost your restaurant sales. 

7. Make use of restaurant management software

There are many restaurant management software available to ease your restaurant operations. Most of them help you in order management, inventory management, and marketing. You have to find the best restaurant management software that meets all your needs. Each software offers different solutions, and you have to be very careful before choosing the right one. A perfect restaurant software will simplify your operations while saving time and money. 

8. Organize events

Organizing events is one of the easiest ways to expand the reach of your restaurant. For example, you can organize comedy nights, karaoke nights, guest performances and host various exciting events that will compel your customers to visit your restaurant. Make sure you use the right techniques, and the event is reaching maximum people. Events like food festivals always bring an enormous crowd and can be made a part of your restaurant sales plan.

Your restaurant menu shouldn’t merely be a collection of dish names. The menu is the first thing a customer notices at the dining table. A well-designed, attractive menu will convince customers to try more food items. The best-selling items should come in first place on the menu. You can also rename popular dishes according to the regional accent to attract more people. 

10. Optimize pricing details

Optimizing pricing information is as important as optimizing the menu. The customer should not feel the food is too expensive or too cheap at first gaze. Instead, the menu should be designed in such a way that the customers should feel the pricing is decent. The menu should be a mix of expensive and cheap items so that the customer will try more dishes. 

11. Increase speed of service

Whether it’s online or offline, quick service always satisfies customers. Hire the best employees to provide fast and accurate service at the restaurant. You can also utilize restaurant management software to manage online orders and to offer quick service. Most of the restaurant software allows you to handle multiple orders easily. 

Importance of restaurant service

12. Utilize social media

Social media is a powerful tool to boost your restaurant. sales specially post-COVID. Ever since COVID, social media promotion has seen an all-time high. Most of the people are active on Facebook, Instagram, Linked In, and so on. Therefore, it will be a great help if you create social media pages for your restaurant. You must update these pages regularly by uploading pictures and posts about upcoming events at your restaurant. You can also use these pages for notifying your customers regarding special combos, seasonal offers, and discounts. 

13. Provide offers and rewards

Providing offers and rewards on special occasions will impress your customers for sure. This technique is quite popular among restaurants, but it never fails to bring that extra crowd to your restaurant. It will increase your restaurant sales on special occasions like Christmas, New Year, and other regional festivals. 

14. Use different marketing techniques

Marketing for your restaurant business is as important as anything. You must have tried several marketing strategies, and some of them would have worked while some haven’t. With the passing of time, you cannot expect old marketing strategies to work. You have to use different innovative marketing techniques. For example, instead of emailing customers about new offers and events, try texting them. 

15. Offer the best dining ambiance

People will become your regular customers if you offer the best dining ambiance. Therefore, your atmosphere plays a vital role in growing your restaurant sales. You must keep your dining area, tables, chairs, and plates clean and hygienic. After cleanliness, you can arrange good music or live music at your restaurant. Also, you have to see that your dine-in area is spacious and the seating area is comfortable. You can also work around the lights of your restaurant. 

16. Analyze reports

Reports and data help you in making crucial business decisions. You can utilize the daily reports to know your business growth. A well-designed restaurant software will provide detailed reports regularly. You can store these data and access them whenever necessary. Reports help you understand which dish is the best-seller, which delivery partner is getting maximum orders, the peak time, and so on.

17. Email and SMS marketing

Use email and SMS to stay connected with your customers. You can notify customers regarding new events and offers in your restaurant by sending emails and SMS. Most of the restaurant software is designed to send emails and SMS automatically to the respective customers. Most people check their mailbox and SMS inbox regularly. So there is less chance of missing your email and SMS.

The impact of online food delivery partners in the restaurant industry is increasing daily. It’s always advised to have a partnership with as many delivery partners as possible. Restaurant management software like Foaps allows you to integrate and handle multiple delivery partners effortlessly. You must merge with popular food delivery partners like Zomato and Swiggy. It will surely increase your restaurant sales as well as reputation. 

19. Utilize customer reviews

Ask customers to review your food and restaurant before they leave. Most people tend to check reviews and ratings before ordering something from a restaurant. If your restaurant can get a high rating, most people are likely to prefer your food. Also, you get a chance to improve the working of your restaurant as per the customer reviews and feedback. So, it’s a no-brainer that reviews and ratings have a huge impact on the success of any restaurant these days!

20. Partner with local businesses

It’s essential to stay in touch with the local food community or other government associations that endorse your business to boost restaurant sales. These partnerships can help grow and promote your business by drawing the customers of another business. For example, if you’re into healthy, low-calorie food like salads and smoothies, you can reach out to gyms and health clubs for partnerships. 

How can Foaps help you increase your restaurant sales?

Foaps is a specially designed application to ease your restaurant’s online food order and delivery. Its unique features will help you simplify your workload and improve productivity. In addition, it flaunts a user-friendly interface that anyone can access easily. 

How can Foaps help improve restaurant sales
  • Foaps can integrate with multiple delivery partners easily. It allows you to increase your sales and revenue. 
  • Foaps allows you to manage multiple online orders easily using a single window. It helps you save time to focus on major business aspects. 
  • You can use your existing billing software along with Foaps. It enables you to save time and money without getting a new billing system. 
  • The order management system helps you sort online orders and offer quick service. Eventually customers will be satisfied and sales will improve. 
  • Foaps includes unified menu distribution and management that helps you edit menu and pricing information easily. It saves you a lot of time and effort. 
  • The in-depth reports section gives you real-time analytical and category-wise reports. You can utilize them to make important business decisions in the future. The visual chart helps you to understand the business better and how to improve productivity. 
  • Foaps is a highly scalable and easy-to-use application. You can upgrade the app according to your business needs. 

Conclusion

The restaurant business is a highly competitive business in India. You have to use different strategies and techniques to keep your business healthy. You must carefully understand these 20 points and execute them perfectly to increase your restaurant sales. These effective ways will surely help you boost your revenue. Also remember to choose the right restaurant management software for your business, thanks to technological advancement. It will simplify your restaurant operations and help you save time and money. 

Top 10 restaurant management software in India

The demand for restaurant management software is increasing day by day with the increase of online orders and digitization. Your restaurant will run smoother and will reach new heights if you have the perfect restaurant management software to manage your business. We will introduce some of the best restaurant management software currently trending in India.

Table of Contents
1. Introduction
2. 10 best restaurant management software trending in India3. Conclusion     

Check out these leading restaurant management software in India, each having different features. Pros, cons, and pricing of each software are also included for easy analysis. Carefully analyze the specialties of each restaurant management software and choose the right one for your business. 

1. Foaps

Foaps

Foaps is a new restaurant management software specially developed to meet a variety of requirements. The hurdles of using different windows can be avoided using Foaps. With Foaps, restaurant managers can handle multiple online food orders with a single dashboard. It makes the process easier and quicker. Foaps also allows you to edit pricing and menu details across all delivery platforms easily. You can update the menu and pricing information with a single click. 

Features

  • Order management provides all the details you need about online orders. In addition, restaurant owners can track orders and other information under this dashboard.
  • The unified menu distribution and management allows you to update the menu and pricing across all delivery platforms easily. You can save a great amount of time and effort with this feature. 
  • In-depth reports have three subsections, namely real-time analytical reports, category-wise reports, and visual charts. Restaurant owners can utilize these reports to make important business decisions in the future. 

Pros

  • Easy to use.
  • Single-window interface 
  • Can integrate with your existing billing system 

Cons

New to the market and more features are loading.

Pricing

StaRs. 699/Month/Platform and Rs. 5988/Annum/Platform

2. Petpooja 

PetPooja

Petpooja is an all-round restaurant management software that is easy to use and highly efficient. It allows you to process orders quickly along with healthy customer interactions. In addition, the application is customizable and accepts all kinds of payments. 

Features

  • Inventory management features can be effectively used to manage your inventory and stock.
  • It can integrate with online food delivery partners and coordinate with them. 
  • The employee management system allows you to manage employees and staff easily.

Pros

  • Good customer service
  • Easy to integrate

Cons

User interface can be made better.

Pricing

Rs. 10000/Annum 

3. SlickPOS

Slick POS

SlickPOS is the software you need if you like to simplify your restaurant billing process. It allows you to manage your front end, back end, and vendors on a single platform to centralize your business. Also, you can improve customer interaction by processing bills and orders using SlickPOS. This software is adaptable and you can customize it according to your requirements. 

Features

  • Billing and financing can be managed easily using SlickPOS. 
  • The inventory and recipe management allows you to monitor and control stock.
  • Reports and analytics are available to analyze your business and make important decisions
  • The kitchen display allows you to stay connected with what’s happening at the kitchen. 

Pros

  • Easy and convenient to use.
  • Bills can be sent by SMS.

Cons

Not very responsive when it comes to mobiles

Pricing

Starting from $19/month to $189/Year with additional features.

4. GoFrugal

GoFrugal

GoFrugal is perfect not only for restaurants but fast food outlets too. It has a variety of features like cataloging, billing, accounting, and so on. GoFrugal also provides great customer service with its valuable features. 

Features

  • GoFrugal Retail POS allows you to take cash in different forms like cards, coupons, gift vouchers, part-cash, part-card payments, and more. 
  • You can customize, design, and print barcode labels according to your need. 
  • Billing will not stop even when the main computer is down, uninterrupted ‘Offline billing’ provides peace of mind.
  • You can save complete customer history with a click of a button with this retail POS.

Pros

  • Simple and easy to use
  • Fast and accurate billing, 
  • Keeps precise inventory data.

Cons

Need feature improvements.

Pricing

  • Starter subscription – $188/year
  • Standard subscription – $313/year
  • Professional subscription – $750/year

5. Limetray 

LimeTray

This restaurant management software is perfect for integrating seamlessly with your online food delivery partners. Excellent customer service is one thing that makes Limetray a unique and valuable application. Additionally, after you choose their services, they assign a designated account manager for your business. This restaurant management system will integrate third-party applications with ease to centralize the operations.  

Features

  • The billing system allows you to make error-free billing operations with ease.
  • Inventory management helps you keep track of stock and items. 
  • Limetray also comes with additional features like kitchen display and table reservations to reduce your workload. 

Pros

Feature-rich

Cons

Not really made for small locally-owned restaurants that don’t need all the added extras.

Pricing

Starting at $35.00/feature/month

6. Torqus 

Torqus

Torqus offers a cloud-based Saas platform for the restaurant business. It helps restaurants to manage all their backend activities, ranging from procurement to billing to taking feedback from end customers post their meal. It is a highly efficient and convenient software. 

Features

  • The Software takes extensive care of all the functionalities of a restaurant outlet, ranging from steward management to managing a dynamic menu
  • Head office accumulates customer data, manages and tracks delivery stages, aggressive SMS marketing, and manages data from a single access point.
  • Supply Chain Management enables efficient management of the restaurant chain inventory by strategically coordinating all business functions, ranging from procurement and manufacturing to sale estimation and invoicing.

Pros

Torqus is very easy to install and use. 

Cons

The design of the software is outdated.

Pricing 

Rs. 15000/year

7. Toast 

Toast

Toast is a new, all-in-one restaurant software designed to reduce your workload. Toast brings together many features from integrated online ordering, gift cards, loyalty programs, labor and sales reporting, and so on. Toast helps you enhance your actions, grow revenue, and get more business insight. Toast’s mission is to create the best possible restaurant guest experience by partnering with customers to tackle the unique challenges of the restaurant environment.

Features

  • Menu building allows you to create, edit and share food menus easily.
  • Inventory management keeps a track of inventory and ingredients and avoids the problems of items running short in emergency situations.
  • The accounting section manages all financial operations with precision.
  • Toast also features loyalty programs to attract customers and add balance to your restaurant business.

Pros

  • Toast has excellent customer service, 
  • POS interface is simple and convenient to use.

Cons

The software needs to be made more intuitive.

Pricing

  • Express – $79/month
  • Professional – $99/month
  • Enterprise – Customizable

8. POSist

POSist

POSist is a cloud-based restaurant management software. It offers scalable, reliable, and easy-to-use restaurant technology, enabling businesses to automate operations, delight guests, and grow revenue. 

Features

  • Restaurant owners can use the menu building feature to create menus within the platform for servers to input orders or for online ordering.
  • Inventory management helps to track inventory accurately to make purchasing decisions and avoid spoilage.
  • The employee scheduling system allows you to create work schedules for your employees. 
  • POSist includes marketing tools to aid in creating, executing, and measuring the success of a marketing strategy.

Pros

  • Good customer support
  • Easy to use interface
  • Data syncing is very fast to the cloud

Cons

Logo printing on bills is not customizable, the printing option needs improvements, integration is not good.

Pricing

Customizable 

9. Lightspeed restaurant

Lightspeed restaurant

Lightspeed Restaurant’s robust POS solution lets you run your entire restaurant from an iPad and access your business anywhere, even if you lose internet connection. Whether you run a full or quick-service restaurant, a bar or nightclub, a hotel or cafe, this POS system is tailored to reduce your workload. 

Features

  • The menu feature allows restaurant owners to display the menu with pictures and descriptions easily while you can update the floor plan with ease.
  • The ordering and payment system helps you offer quick and accurate service.
  • It also features an offline mode to work even without the internet.
  • The reports and data will help you prepare for peak periods and better understand your customers’ needs. 

Pros

  • Excellent customer service 
  • Easy to use

Cons

  • Needs to remove some bugs and glitches, 
  • Needs to include more features.

Pricing

Starting at $79/month

10. Peachworks 

Peachworks

Peachworks, the child company of Beyond is a leader in solutions for managing back-of-house restaurant operations. With many valuable features, this restaurant management software simplifies everything from reporting, inventory management, employee scheduling, and POS Intelligence to recipe management. 

Features

  • Inventory management helps you in making important business decisions and keeps you updated about stock and ingredients.
  • The menu management allows you to display and edit menu and pricing information easily.
  • It has an employee management system to manage employees, their schedules, and so on. 
  • The additional features such as recipe management and cost management reduce your workload and increase productivity.

Pros

  • Quick and easy to use, 
  • You can have full control over your metrics from anywhere

Cons

  • The reports are difficult to interpret
  • Integration is still under development

Pricing

$195/month/location

Conclusion

All restaurants need perfect management software to manage and simplify different restaurant operations. However, each software offers different features at different pricing levels. Therefore choosing the best restaurant management software for your business is very crucial. Carefully studying each software’s features, pros, cons, and pricing will definitely help you choose the right software for your restaurant. 

How to Open a restaurant in India : All you Need to Know

Introduction

The restaurant business is one of the most popular and profitable businesses in India. Starting a new restaurant is quite a lengthy process. However, if you have a clear idea about opening a new restaurant in India, the process becomes pretty quick and easy. 

Table of Contents
1. Introduction
2. 13 effective tips to start a restaurant business in India3. What NOT to do when you open a restaurant in India?       
4. What are the things to monitor after you start a restaurant in India    
5. Conclusion

13 effective tips to start a restaurant business in India

These effective tips will help you to get an idea to start a restaurant in India. 

1. Choose the model of your restaurant

The first thing you have to consider is the model or type of your restaurant. It depends on many factors like the location of the restaurant, investment and competitors. It’s easy to choose the model of the restaurant if you figure how much is the investment. 

The cost to start a restaurant in India would be anywhere from 5 lakhs to 2 crores. The most popular restaurant models are cafes, bakeries, quick service restaurants, casual dine-in and resto-bar. The capital investment varies for each model. It would be best if you did proper market research about what works best in your location. If your restaurant is based in a small town, a casual dining restaurant will be a good choice. Since different restaurant concepts require different capital investments, the budget is the main thing you should keep in mind while deciding your restaurant idea. 

A more casual takeaway concept might be the best option if you’ve got a small area. If you have a much larger space, you can go for a more crowd-pleasing model with bars. These points will surely help you choose the best restaurant model. 

2. Select the right location of your restaurant

The location of the restaurant is crucial to its benefit. Many factors need to be considered before choosing the right location for your restaurant. The first thing you must do is market research and industry analysis on where you wish to open your restaurant. 

The restaurant should be visible, or the name board should be visible for the trespassers. The size of the location is also an essential factor to be considered during the restaurant site selection process. The size of the restaurant does not just imply the dining space but also should be big enough to accommodate all the kitchen equipment and food supplies. Finally, it is always good to have a parking slot. Customers always choose restaurants that have easy access and an ambient parking slot. 

gordon-rmasay-quote

3. Evaluate the cost of your restaurant

The total cost to start a new restaurant in India depends on various factors. Therefore, after choosing the model and location of your restaurant, the next step is to evaluate the cost. The rent and building charge of your restaurant depends on the location and size of the building. Renovation and decor also need a considerable amount of investment. It is your duty to offer the best dining environment for the customers. 

It is always recommended to have the best quality kitchen equipment and appliances. Modern restaurants need technology to operate efficiently. Innovative gadgets and devices help restaurants run more efficiently by automating processes and operations. For example, if you have an iPad for managing online orders, the process will be smooth and quick. 

The licenses and permits also need to be considered. Though the cost of each license varies from place to place, it’s always recommended to settle everything before starting the restaurant. Marketing your restaurant is also important. You can give advertisements in newspapers and create wall posters across the town. These are the main expenses you need to consider before starting a new restaurant. 

4. Get financing and funding

After the estimation of cost, the next step is to find the source. If you have enough money in the bank, you know the process is pretty simple. Even if you don’t have, there is no need to worry. Either you can take a loan or find an investor. You can request a loan from a bank to fulfil your dream of starting a restaurant in India. For that, you need to produce some kind of security such as land or house. The third option is to find an investor. There are a large number of investors who are constantly on the lookout for good businesses to invest their money in. 

5. Know the competitors and restaurant market

Restaurants are everywhere around, and you have to thoroughly analyze the market before stepping into it. The restaurant business in India is a highly competitive one. The best way to give tough competition is to know them well. You have to compare your restaurant’s food quality and the environment with your competitors. You also have to find ways to raise the standards to beat your opponents. It’s essential to check the food quality regularly and train your employees to deliver the best service. You should also market your restaurant well to attract more customers. 

6. Get all the licenses to start a restaurant in India

To run a restaurant in India legally, you must have all the necessary licenses and permits. The cost, documents required, and procedure to obtain each license can vary. Some licenses may also depend on the services you provide in your restaurant. Now you might be thinking what licenses are are needed to start a restaurant in india

 Well, there are 12 mandatory licenses you need to obtain before starting a restaurant in India. They are: 

Get all the licenses to start a restaurant in India

In case you want to know more about the procedures and documents needed to obtain these licenses , you can click here.

7. Connect with kitchen equipment and ingredient vendors

Good quality food and service always attracts more customers. The cooking accessories, heating and cooling equipment you get should be of decent quality. You may also need to find a good vendor. The food supplies should be cost-effective and fresh. If the ingredients are of high-quality, the dishes will be delicious and attract more customers. It also helps the chefs to prepare good dishes easily and quickly. Thus, you can generate more profit and save a great amount of time. Maintaining a healthy relationship with employees and vendors is also important. It would be better if you stock some supplies in your inventory for emergencies. You also need to check the Trade Identification Number (TIN) of the vendor before you give him your restaurant’s supply contract.

Your restaurant menu is most important because it’s the first thing a customer looks at after entering your restaurant. A smartly designed menu can make a significant impact on your business. The menu should be created with the help of experienced chefs and consultants. The menu should include items that can be made easily and quickly. It   should be as appealing as your dishes. Always use proper readable fonts and language. It is better to mix up expensive and inexpensive food items in the menu card. So that customers will not feel the food items are too costly or too cheap. If the food is too cheap, sometimes the customer may doubt the quality of food. 

9. Hire talented employees and keep them encouraged

Hiring the right talent and retaining them are the best ways to keep your business healthy. You can hire the employees by advertising in newspapers and wall posters. You can also use LinkedIn, Facebook etc., to search for talented employees. There are mainly three types of workers you need to run a restaurant, they are 

1. Kitchen staff

Your kitchen staff comprises the cooks, food preparation staff, support staff, etc. They need to make good quality food and make the customers happy.

2. Service staff

The restaurant’s waiters, housekeeping staff, busboys etc., come under service staff. They need to be good at communication and must be trained appropriately to deliver the best service.

3. Management

Your restaurant’s manager, chef, cashier, store manager etc., comprise the management staff, and they need to be educated and experienced.

Helen M and P schubert quote

10. Partner with food delivery partners

Nowadays, smartphone usage has significantly helped the growth of online delivery platforms to a great extent in India. Now, anyone can order whatever they want with an internet connection and a few taps on their smartphone. Partnering with food delivery partners allows you to reach a more extensive customer base without much expense. Having your restaurant registered on a food delivery app makes it easier for customers to look through your menu and order what they want. It also makes your restaurant name look more professional. This innovative process also allows customers to rate your foods. If they like your food, your restaurant will get a high rating and become more popular. 

11. Choose the best technology 

You can utilize the new-age modern technology to make the operations quick, easy and accurate. Choosing the right technology speeds up and simplifies the ordering and paying processes. You will need a restaurant management system to run a restaurant smoothly. There are many competing softwares on the market, some with a robust feature set and others more basic. Whatever restaurant management system you choose, it should be reliable, efficient and cost effective. FOAPS is an innovative software that helps you to manage online orders effectively. It has valuable features and a reasonable pricing plan. It will surely help you run the business smoothly. 

12. Mission and vision

You should have a proper vision and mission for your restaurant. A restaurant mission statement explains why your restaurant exists. Your mission statement should explain what purpose your restaurant serves. Mission statements are often paired with your business values and vision.  Together, a mission and vision represent what your restaurant stands for. It also reflects goals that you hope to achieve through your restaurant. Though mission and vision sound similar, they do have a difference. Your vision is something that describes the future of your restaurant when you accomplish your mission. So it’s important to craft a mission and vision statement to make your restaurant unique and productive!

13. Market your restaurant

If you wish to succeed in your restaurant business quickly, marketing is the best way. You can advertise your new restaurant in newspapers and wall posters. Freebies, discounts and offers also attract customers. In addition, creating a website and application for your restaurant and promoting it is an easy way to market your brand. Online advertisements also attract a lot of customers these days. Social media also offers an ideal platform to market your restaurant. Be active on all social media platforms like LinkedIn, Facebook, Instagram etc. and keep posting about your restaurant regularly. 

What NOT to do when you open a restaurant in India?

Try not to manage part-time

Many inexperienced restaurateurs try to manage their business part-time but later realize how operationally intensive it is. So, try to focus entirely on your restaurant business upon starting it.

Compromising on food quality and hygiene

Remember that food quality and hygiene are the main factors that define a restaurant. Customers prefer your restaurant only if they like your food and eating ambience is hygienic . 

Not understanding your customers

It’s always advised to know the taste of your customers. It would be great if your restaurant can deliver what customers demand. But, for that, you have to understand their interests and preferences. 

Inefficient accounting operations

Quick and precise operations are required to run the business in a healthy manner. Avoid accounting errors by utilizing technology and loyal employees. Tracking the accounting operations regularly also reduces errors and helps you develop your business in future.

What are the things to monitor after you start a restaurant in India

What are the things to monitor after you start a restaurant in India

Conclusion

Having these important points in mind will surely help to achieve your dream of starting a new restaurant. Of course, starting a new restaurant and running it successfully is a hectic task. But if you know all the basics and procedures to start the business, the process is more manageable. So, read through these pointers, structure your ideas better, keep yourself motivated and open a restaurant in India very soon!t. It also makes your restaurant name look more professional. This innovative process also allows customers to rate your foods. If they like your food, your restaurant will get a high rating and become more popular. 

12 Mandatory Restaurant Licenses required to Open a restaurant in India

Introduction

Restaurants are one of the most popular ways to invest money in India. Great ambience and good food can surely attract a good number of customers and thus a great profit. However, you need to procure certain licenses if you’re planning to start a restaurant in India. But no worries. You are at the right place. We have provided all the guidance and procedures to get the licenses required to open a restaurant in India.

Table of contents
1. Introduction
2. 12 Most important licenses required to open a restaurant in India
3. Bonus Facts About Restaurant Business in India
4. Conclusion

12 Most Important Licenses Required to open a restaurant in India

Check out how and where to obtain the 12 mandatory licenses required to open a new restaurant in India. 

12 Most Important Licenses Required to open a restaurant in India

1. FSSAI License

This is the first and most important license you’ll need to start a restaurant in India. The Food Safety and Standards Authority of India not only authorizes you to run a restaurant but also gives confidence to your customers. A FSSAI certified restaurant always attracts more people. It is also a legal document representing the approval of the authority.

How to apply

FSSAI license can be applied through their official portal. The inspection will take between one week to one month depending on the paperworks. 

Where to apply 

The food license application can be done online through the official portal. You have to fill up the online form and make payment here. 

Types of licenses 

  • FSSAI Registration – For food business < ₹12 lakhs revenue/year
  • State License – For food business > ₹12 lakhs and less than <20 crore revenue/year.
  • Central License – For food business > ₹20 crore revenue/year.

Documents required

  • Valid Email ID and Contact Number
  • FSSAI form duly filled and signed by the Restaurant Owner
  • Identity and Address Proof issued by a Government Authority
  • List of main stakeholders along with their identity proof
  • Declaration of Food Safety Management plan
  • Proof of possession of the location/premise
  • No objection certificate from the local Municipal Corporations or local bodies
  • Kitchen Layout Plan
  • Water Testing Report provided by ISI certified organization
  • List of Food Category
  • Partnership Deed/ Affidavit of Proprietorship (in case of business operated in other premises or case of partnership firm)
  • Medical certificates of employees
  • Types of equipment to be used

Food License Cost :

Food License costs ₹2000/year for State License and ₹7500/year for Central License

2.  Eating house license

Eating house license is mandatory if you’re planning to open a public restaurant where food and beverages are supplied for consumption. 

How to apply 

You can apply for this restaurant license online. You just need to fill the application along with submitting the required documents. After that the applicant must meet the Additional Commissioner of Police of the state for the verification of application and the examination of documents. If the application and documents are approved, the applicant will be issued the eating house license within two months. 

Where to apply 

The eating house license can be brought from the respective websites of the city or state licensing policing commissioner. 

Documents required

  • Fire NOC if the seating capacity is greater than 50
  • Site plans and photographs
  • Documents of the restaurant building and NOC from property owner
  • Trade license
  • FSSAI license
  • Photocopy of valid NDMC/MCD/DCB/ Airport Authority of Indian trade license and valid fee receipt
  • Undertaking regarding the installation of a CCTV camera recording facility with a minimum of 30 day’s recording stored

Eating house License Cost

The cost of getting an Eating house license is around Rs 300.

3. Health/Trade license

Public health is a crucial factor to be considered before opening a new restaurant. Health Trade License is a license issued by a municipal corporation permitting the operation of a business engaging in goods and services that directly affect the health of the general public. 

How to apply

Initially, you have to fill up all the details of the application form for Health Trade License like applicant status, address of premises, type of business activity, residential address of the owner. After the verification of the application and documents, the license will be issued. 

Where to apply

The forms for the application of Health Trade License are available at the State’s Municipal Corporation website or Zonal Citizen’s Service Bureaus. 

Documents required

  • Three copies of the site plan
  • Electricity and Water bills
  • Rent Agreement or NOC from landlord
  • Sewer Connection Proof
  • Proof of property tax
  • Letter from local police
  • Plan and Layout of the restaurant
  • Indemnity bond for Rs.100
  • Structural Stability Certificate signed by the concerned Structural Engineer
  • Water Testing Reports
  • Medical Certificates of Employees
  • Lal Dora Certificate, if applicable( only in Delhi)

Health/Trade License Cost 

The cost of the trade license is based on the location of the restaurant. 

4. Liquor license

Selling liquor is one of the most profitable businesses for the Hotel Sector in India.

It always has high demand irrespective of the season. You need the Liquor License to serve liquor at your restaurant. The Liquor License is permission granted by the State Excise Department to those who want to sell or distribute alcoholic beverages or drinks at a particular place.

How to apply

Each state has its own rules to be followed for serving liquor. The application has to be submitted to concerned state authorities. 

Where to apply

As already mentioned, each state has different rules and regulations to be followed. The application has to be submitted to the respective state authorities. 

Types of Liquor Licenses

  • L-1 – Granted to company society or partnership running with manufactured units
  • L-3 – Granted to working distilleries or bottling plans that are issued by the state or central government
  • L-6 – Granted for retail vendors for liquor and beer by the state government
  • L-10 – Granted for sale of foreign liquor and select Indian brands
  • P-13 – Temporary license provided to hotels, pubs, and restaurants which are licensed to sell liquor inside or outside the premises for one specific day
  • P-10 – Granted to serve liquor at a function on a specific day for anywhere in the city other than public parks

Documents required 

  • Address proof of the restaurant
  • Original application and a copy with business details
  • NOC from the fire department and municipal corporation
  • List of all directors of the company
  • MOA and AOA if the applicant is a company
  • Copy of the latest IT returns
  • Concern applicant photographs
  • Affidavit of the applicant stating there are no criminal records under their name

Liquor License Cost

The cost of the liquor license is based on the location of the restaurant. 

5. GST Registration

GST number is mandatory to start any company in India. If your restaurants have outlets in different states, then you need to have a separate GST registration for each state.

How to apply

Firstly, you need to apply for GST registration in Form GST REG – 01. After that, you’ll be asked to upload documents and attest the same with your signature. After the verification of your application and documents, the department will grant your registration certificate. 

Where to apply

You need to go to the official website of GST to register. 

Documents required

  • Applicant details
  • Mobile number
  • Email Id
  • Pan card number
  • Proof place of business
  • Copy of valid rental agreement/lease agreement
  • Valid bank account from India
  • Provisional ID and password received from the state’s VAT department

GST Registration License Cost

There is no fee for GST registration in India.

GST Registration License Cost

6. Environmental clearance license

Environmental clearance is a procedure to get clearance from the government for certain industries which cause environmental pollution. Your restaurant is expected to cause no pollution to the environment. 

How to apply

You need to submit the questionnaire for environmental appraisal. The expert appraisal committee will review your application and approve the same if eligible. 

Where to apply 

You can apply for the certificate of environmental clearance from the ministry of environments and forests website

Documents required

  • Letter of intent from the Ministry of Industry
  • NOCs from the State Pollution Control Board and the State Forest Department if the project talks about forestland

Environmental clearance License Cost

It depends on the type of restaurant.

7. Fire safety license 

The safety of the workers and customers is one of the most important factors in any industry. The restaurant must protect its customers and workers from fire hazards. A No-Objection-Certificate (NOC) from the fire department is thus required to run a restaurant.

How to apply

The restaurant must submit the application for NOC from the state fire department. The restaurant should also have all the safety equipment in place. After that Chief Officer will inspect the equipment and approve your license if eligible. 

Where to apply

The NOC should be submitted to the state fire department. Applications can be found online on the state government website.

Documents required

  • Arrangements of Building intends to comprise of building format, examination report, the type of oversight.
  • The structure plan should be as per the data recommended by the bye-laws of the state.
  • Checklist survey questionnaire with answers
  • Building Model certified agenda by Architect.
  • Building Stability declaration.
  • Applicant’s id card- a copy of Aadhar Card.
  • Photographs of the setup building clicked from outside.
  • Quantity and finishing endorsement of Electric wiring should be given from a perceived position.

Fire safety license License Cost

There is no fee required

8. Lift license 

You’ll need a lift clearance if you’re planning to install a lift in your restaurant. You have to ensure that the lift operation is designed by meeting the safety standards. 

How to apply

You have to register for the Lift Clearance License which ensures that the lift operations comply with safety norms.

Where to apply

The lift clearance license can be obtained from the electrical inspector in the office of the Labour Commissioner. The electrical inspector issues this license from the office of the Labour Commissioner after verifying the installation of your restaurant’s lift. 

Lift License Cost

The cost for a lift license depends on the technical parameters of the lift. 

9. Signage license

You’ll need a Signage License for advertising your restaurant. This legal permit allows you to market your restaurant by using photos, graphics, and painting in your area. 

How and where to apply

You can obtain this license from your respective Municipal Committee or City Corporation. 

10. Music license

Music is cool and it will attract more customers. But for playing music in your restaurant, you have to obtain a music license. 

How and where to apply

Restaurants can obtain a music license from the Phonographic Performance Limited website. 

11. Shop and establishment license

This license is mandatory and permits you to run a business in your respective state. It comes under the Shop and Establishment Act which regulates the working hours, payments of staff, and work conditions. 

How to apply

The Chief Inspector of Shops and Establishment Act, or the inspectors assigned to the area where you operate the restaurant, are the persons approved to provide the certificate of registration. You can either apply for the license online or offline. 

Where to apply

The application can be submitted directly to the respective area inspector or you can submit it through the labor commission website of your state. 

Documents required

  • Details of Employer/Manager
  • Memorandum and Articles of Association/Trust deed/Partnership Deed
  • Lease Rent Agreement /Premises purchase Agreement
  • List of Directors/Managers/ Partners
  • Bank Account Number details
  • First Income Tax Assessment order/PAN
  • BMC declaration
  • Date of commencement of business

Shop and establishment License Cost

The cost of this license depends on the number of employees in your restaurant. 

12. Insurance

It’s always recommended to insure your restaurant for the following parameters.

  • Public Liability
  • Product Liability
  • Fire Policy
  • Building & Asset

How and where to apply

Insurance can be obtained from any legally registered entity. 

Bonus Facts About Restaurant Business in India

Stats don’t lie! Here are some impressive numbers that indicate the growth of the food and restaurant industry in India and judging by it there is a sea of opportunities in this sector!

Bonus Facts About Restaurant Business in India

Conclusion 

You don’t have to be confused and tensed by looking at the number of licenses you need to start a restaurant. We have clearly explained how to obtain these licenses easily. These licenses are mandatory to keep your business healthy. Once you have got all these licenses, you can plan the opening ceremony of your restaurant at any time. So, best wishes for your new restaurant!