How to Start Your Own Restaurant Business
Nowadays people’s lifestyle has changed a lot, and now people are very busy because as many people are going out and working, it is becoming a problem for them to cook at home. And that’s why restaurants play a big role here. And all those people or investors who are thinking of investing in a business like restaurants will be able to increase the profit of their business in the future.
And if you don’t pay attention to any thoughts, then you will think that the restaurant business is a beneficial business. And if you are thinking of starting a restaurant business, or are in the process of starting your first restaurant, then this post is for you. And those of you who are not thinking of starting a business like this can also read this post to know what things you need if you want to start a restaurant business. And today we will let you know in this post how to open a restaurant? What else do you need to keep an eye on, and how do you make your restaurant popular? Then you can read our entire post to know all this information. So friends, let’s get started and find out some important facts about the restaurant business.
What is the future of restaurants in India?
The Indian restaurant market is the fastest-growing market in the world. According to the NRAI (National Restaurant Association of India), Indian restaurants will achieve a growth of around Rs 6 lakh crore from 2022 to 2023. So friends, according to this report, you can understand the demand of restaurant business in India and how this restaurant business will give you profit. So let’s get started friends and let us know how you will start a restaurant business in India.
1. Clear the concept of your Restaurant
When you start a restaurant, you need to calculate how much profit you expect from this business. And there are some things to keep in mind when deciding. Such as –
- How much capital do you have to invest in this business?
- How much return will you get from a customer?
2. You need to have a proper business plan for your restaurant business.
3. Raise funds to start a restaurant business.
- First of all, clear the concept of your restaurant
- How much budget would it take to open your restaurant
You can take a loan
- Food cost – food cost – The price of all the raw materials needed to make a food dish.
- Labor cost – Labor cost is one of the highest costs, and it is needed for restaurants. One of the biggest expenses that come later when opening a restaurant and running a restaurant.
- Overhead costs – Overhead costs are different from these, it is not like any food or labor. And there are many things involved in this cost such as –
- License – License is required to open your restaurant. Licenses depend on many things, such as what area your restaurant is in.
- Marketing – You need to spend 1% -2% of your entire profit on marketing your restaurant. Doing so will let a lot of people know about your restaurant and come to your restaurant.
- Kitchen equipments etc.
4. Decide the location of the restaurant
- How many other restaurants are there in that location?
- How many people are there in that restaurant every day?
- What is the profit of the restaurant?
- competitor’s profit.
- What strategies do your competitors use to reduce profits?
- The demand for any food in that area is high.
5. License required for restaurant
- Trade license – Depending on the size of the restaurant, it costs around Rs 10,000 to Rs 1 lakh. Although for small restaurants the amount is around 5000 to 10000. The license is issued for a financial year. This license has to be renewed in March every year.
- Fssai – To open a food business in India, you need to get this Indian Food Security License. This is the size, turnover, capacity, location, etc. of your business for the Fssai license. You may have to pay around Rs 5,000 to Rs 10,000 for all the costs.
- GST registration – You need to register for business and get a GST number. You will need to register GST separately for each state.
- Professional Tax License – You need to get this license to keep any staff in your restaurant. All your staff salaries above Rs 10,000 will be included in this tax.
- Liquor license – The most difficult thing to get a liquor license. You should apply for a liquor license as soon as possible, as there is a lot of time to approve this license.
- Business registration – You need to register your business with a partnership firm or other registration process from your business.
- Pollution control license
- Fire safety certificate
6. Collect manpower for your business
How many types of staff are there in the restaurant?
- Kitchen staff – The kitchen staff consists of cook’s, support staff, etc.
- Service staff – This staff is waiters. The waiter deals with the customer so Waiter’s language needs to be good.
- Management staff – This staff is the restaurant manager, restaurant cashier, store manager, etc. All of this will be good for you if you are educated and have a fresh mind.
7. Design Menu for your restaurant
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