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A Complete Guide to How to Start a Restaurant Business in India

By Bdtask Last Updated -- Tuesday, 2020-11-03
restaurant business in india

Nowadays, the restaurant business is one of the trending businesses of any country. In India, the annual growth rate of the restaurant business is 7%. Also, around Rs. 75,000 or USD. 992 crores worth is earned from this sector. Moreover, the restaurant business is increasing day by day in India. So, it will be a great opportunity for you to choose this business. But it is not an easy task to start a restaurant business in India. Because there already exist various competitors. Statistics show that around 1.5 million eating outlets are available there. So, you have to be very well-prepared before starting a restaurant business in India. Now, in this article, I want to describe a complete guide on how you will start a restaurant business in India.

Before starting a restaurant business, you have to be clear about some questions and their answers. These following questions can help you to start a restaurant business.

  •  1. What type of business is your restaurant?
  •  2. Where will you choose the location of your restaurant?
  •  3. How much attractable the name of your restaurant?  
  •  4. What types of foods will be available in your restaurant?
  •  5. What types of customers do you want to target? 

If you have a clear understanding of those questions, then you will get a better outcome from your business. Now, I would like to describe some detailed explanations about the guideline for starting a restaurant business. 

“ Nothing goes perfectly, especially when you're opening a restaurant. ” - Bobby Flay


Proper Planning

Before starting a business, you have to design a proper business model. Without perfect planning, any business can not survive. It is the most important factor in all business. For this reason, before starting a restaurant business, you have to decide the idea about your business. Also, you have to decide the concept of the restaurant. Then you will think about the theme and cuisine of your restaurant. The most important thing is that you have to decide which type of restaurant you want to start. Because there are various types of restaurants available in India. For example, Fine Dining, Casual Dining, Pubs and Bars, Cafe or Bistro, Quick Service Restaurants (QSR), Food Truck Or Food Cart, Bakery, Sweet Shop, etc. So, first, you have to make proper planning, and an appropriate plan will help to develop your business future.  

Proper Investment

This is the most important part of all businesses. Because if you do not invest enough money, then your entire plan and dream will ruin. So, before starting your business, you must have to collect enough funds. Firstly, you have to design your business plan, and according to this plan, you have to decide how much money you will spend. Moreover, you can manage your fund in various ways. For instance, you may provide the money from your self-funding. If you have not enough money for starting your business, then you will start your business in partnerships. Also, you may take some loans from a bank, and that is a secure platform for collecting your funds. You may collect your fund from VC or angel funding too.  

Estimate Costing

After creating your business plan and collecting funds, then you will have to calculate expenses and make a budget. It is the most significant part of all restaurant business. Because there are various types of costs involved in the restaurant business. So, you have to be clear about your budget and costing. In a restaurant business, food costing is the major factor, so you have to control the food costing issues. Also, there is included in various kinds of costs like you will have to pay the rent cost, and it should not be over 10% of your total income. As well as, you must have to bear the interior cost. Besides, you have to purchase a kitchen apparatus for maintaining your restaurant activities. You also have to carry some marketing expenses for maintaining your restaurant business properly.  

Visible Location

For starting a restaurant business, you have to choose a visible location. A perfect location is a crucial thing for any restaurant business. Also, your restaurant business’s success depends on an ideal location. Moreover, you have to choose a visible and accessible location for your restaurant. As well as, you have to be concerned about your targeted customers. Besides, your restaurant should be that place where customers can easily find it. If your targeted customer is young generations, then you will choose a place near the university's area. On the other hand, if your target is office going persons, then you will choose the location in the corporate area. So, based on those things, you have to choose your location carefully for your business success.

Business License

After choosing a business location, you need to collect some license from the government. It is a very essential factor for running a business in India. For starting a new restaurant business, you have to require many licenses. First, you have to take a trade license depending on the size of your restaurant. Then you need to get a license from the Food Safety and Standards Authority of India (FSSAI) because they control all food businesses. After that, you need GST Registration, and you must have a GSTIN number for running your restaurant business in India. Also, you have to need a professional tax license, liquor license, fire safety license, eating house license, shop and establishment license, lift clearance, music license, certificate of environmental clearance, signage license, etc.   

Marketing Strategy

To promote your business, you have to apply effective marketing strategies. You have to use various social media like Facebook, Instagram for advertising your business. At the beginning of your business, if you offer a discount on several items, then it will create a positive impression for the customers. Also, you have to provide various offers sometimes for running your business smoothly. Because when you provide some offers or discounts in the price range, then customers will feel very excited to go here. As a result, your sales must be increased. So, a proper marketing approach is an important part of starting a new restaurant business or running any restaurant business duly.         

Menu Design

For running a successful restaurant business, the menu is an important factor. So, before starting a new restaurant business, you have to create a complete menu. For creating the menu, you have to consider the customer's demand. Also, you have to choose those items that can be prepared quickly. Because, if you serve the customers fast, then it will create a positive impression for your restaurant. Moreover, you have to stock all ingredients that are needed for preparing any foods. As well as, you have to choose those ingredients that you can get easily in your near marketplace. So, the major point is, you have to design an attractive menu that helps to increase your sales and customer spend more. 

Suppliers & Vendors Selection

It is an essential feature for operating your restaurant business smoothly. You have to select the suppliers and vendors carefully. Before choosing a vendor, you have to check the Trade Identification Number (TIN) of the vendor. Also, you have to agree to a long duration contract with the vendors that helps to provide the raw materials of your business. Moreover, you have to choose various vendors, and that helps to serve as a backup for reducing your cost. You must have to monitor your inventory every day. Also, you have to monitor the quality and quantity of items that have been served by the supplier. So, if you maintain these things properly, then you will get good service from them, and your business will run easily.  

Ensuring Enough Manpower

In your business, you have to hire experienced and efficient manpower. Otherwise, you can not hold on to your restaurant’s reputation. It is one of the biggest peculiarities for all restaurant business. The behavior of all staff must be well and polite to the customers, and you have to ensure this. So, for hiring staff, you have to be careful. For maintaining a restaurant properly, there are three types of staff needed. 

Firstly, for maintaining your kitchen and preparing delicious food, you need some experienced chefs. Also, for maintaining other things in your kitchen, you have to hire some kitchen staff. 

Secondly, you need some service staff. They will serve food for the customers, and they will communicate with the customers. Thus, they have to well manner and train properly.

Thirdly, for maintaining all those things, you need some management staff for your restaurant. They will help you to manage your restaurant appropriately. Also, they will manage your cash and account information. So, they must be experienced and educated. 

Interior Decoration & Other Things

Attractive interior design is the most important segment of any restaurant business. So, you have to hire an experienced designer for decorating your restaurant interior. Also, you have to maintain proper hygiene in your restaurant. As well as, you may use some modern technology for attracting customers.

Restaurant Management System

A good restaurant management system can increase your work activity. At present, you can get this type of restaurant management software at a very low cost which you do not need to take skill training before handling. Restaurant management systems will digitize your business. You will get all your management accounts in one system.


So, if you follow this guideline, then you will succeed in starting a new restaurant business. Moreover, statistics show that Indian people are eating out 2 times in a month. There is huge scope to earn better profit from this business. Your hardware and beautiful plans will make your business bigger.