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.
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.
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:
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.
8. Choose the best menu with the help of chefs and consultants
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.
Your restaurant’s manager, chef, cashier, store manager etc., comprise the management staff, and they need to be educated and experienced.
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
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.