How to Start a Restaurant in India

October 9, 2009 39 Comments

Food business is a business which will rarely let you down. If you have a good location in hand you can always start a thriving restaurant business. With lots of planning, perseverance, patience and hard work you can make your enterprise turn into a financial success.

Various factors go into making a new restaurant’s a success. These include capital invested, location, market research, menu, concept, operating systems and more. With a good plan and reasonable finance in hand, you can always go into the process of launching a restaurant and stay perfectly on track with your plan.

Restaurant StartUp
Your restaurant business plan must always calculate the start-up expenses. This must include the operating expenses for a few months and required finances to fund the start-up. Only the correct cash flow projection can help you grasp financial matters better.

How to Start a Restaurant Blog?
This is the moot question before you go into a business.

Money needed depends on the facility, the type of business, the kind of equipment you need, whether you buy new inventory or used hired ones, marketing, and necessary operating capital.

Legal Permit and License Requirement to Start a Restaurant Business
Restaurant start-up also requires you to get all permits and licenses from local governing bodies. You must also have adequate insurance coverage.

Be sure you get all required licenses and permits that are necessary such as food establishment permits from the department of health services, and get adequate insurance coverage, too.

How to Decide Menu and Interior of Restaurant?
Depending on the culinary tastes of the people in the area you must select the menu with care and set correct prices after comparing it with your nearest competitors.

Before kick starting operations you must pay attention to design the interior attractively. Your selection of furnishing materials and furniture must be tasteful. Invest only after you have compared prices.

How to Advertise your Restaurant?
For a good response it is very important to advertise your restaurant and drive home your point across a wide area. The best form of advertisement is to start a blog and highlight the salient features of your restaurant. Circulate the URL for people to know more about your efforts and the latest items introduced or even follow comments. For a good start up offer a discount or something gratis. Once the item you offer is relished by customers you can be assured of more visitors.

What Skills are Required if you Want To Start a Restaurant Business?
Before you set up a restaurant, you must develop a comprehensive human resource program. Begin with compiling a job description for all level of employee. This will clearly define their job duties and responsibilities. Give proper training to your employees. An employee acquainted with their job, can always perform well. You must also learn how to cope with absentees or sluggish employees. Losing your temper will never solve problem. You need to motivate them. Knowledge of employee retention program will stand you in good stead.

What Type of Restaurant you Want to Start?
There are various types of restaurants which you can start in your city. Take local preferences and your culinary skills into consideration. You can start Chinese restaurant or restaurants which specialize in south Indian delicacies. If your location is inside a mall, you can start pizza restaurant or even a fast food restaurant. The options are limitless.

Irrespective of the kind of restaurant you wish to start, the best way to know about the tricks of the trade is to work in the same field before branching out on your own. This will give you good insight into the realities of the business.

39 Comments »

  • Puneet Mithra said:

    Hi, I am also finding out details on how to start a restaurant business. I have done a lot of research, however still have a few questions to be answered. Let me know if you wish to team up to exchange the required details, thanks, puneet

    Reply This Comment

    Scott Wilson Reply:

    Mr. Punit,
    Your every single question will be answered here with personal attention. See, one thing is fixed that you want to start it. So your efforts are going in right way. If you have any difficulty please be free to ask questions. We are here to guide you. Thank you

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    D N Reply:

    Hi I am looking for consultant in Delhi to start restaurant? If anyone here have sound knowledge of starting and setting up restaurant, they are welcome to contact me. You can contact me by replying this comment.

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    G N Reply:

    Hello,
    I make the most excellent craw fish recipes in my area and all my friends would always ask for it. I stay in the MI and every day I see many postings in my area on facebook saying they desire for craw fish and this gave me the idea to try opening up a craw fish recipes restaurant.
    So if anybody is interested in helping me out, I really think this will be great down the future. Thanks for looking….

    Reply This Comment

    NS Reply:

    Hello Sir,
    I am a hotel management graduate and have fair experience in setting u restaurants and hotels/motels on turn key basis(over 5 years industrial experience). I helped setup two restaurants and have given consulting to various other outlets. If u need my help, feel free to comment.
    Thank you.

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  • Scott Wilson said:

    Mr. Mohit,
    What are you talking about is covered by social and cultural factors. Even geographical factors affect the decision.
    To decide, what to start, you need to specify your location.
    If you are in Gujarat and some big town then the decision may defer and the sameway with the other states.
    So better think a bit and ask a question yourself only. If you want to do some thing, you need to take some efforts of thinking and you need to analyse the place.
    Thank you.

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  • Shehla said:

    Hello,

    I would like to open a coffee shop in Hyderabad or Kolkata and am trying to find out what are the licenses and permits required for such a venture and where I would have to apply for these?

    Please guide.

    Thanks.

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  • Anoop said:

    Hi Scott,

    I have been going through your valuable advices to many of the aspirants. Great!

    I am planning to start a chain of “Eateries” in South India which would serve quality snacks and soft drinks. I would first like to start with one and then expand into few numbers in the near future. I have planned the itmes/menu that would would be served and have also decided the price factor. Please advise me what are all the procedures to start this business in India like the license part, certificates etc required for this.

    Also please help me with a model business plan so that I can work out the cash flow. The investment what I will be looking at is 3-5 lakhs intially.

    Please let me know your opinon and advise me in this regard.

    Thanks in advance!

    Reply This Comment

    Scott Wilson Reply:

    Mr. Anoop,
    The plan which you have set is perfect and strategic. The only advise you need is the legal aspects.
    You have to register your firm or company as a food chain enterprise. Then you have to pass through the checking process and the inspection process.
    Once you are done with this, you can easily run the business. The advertising is the second part to take care of.

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    N T Reply:

    Dear Scott, My Business partner and I are very keen to set up a high end restaurant in Delhi and later expand into other states. After viewing this thread i saw you’re above comment.

    I need to determine all the legal requirements and procedures that are in place for this plus any restriction i.e. with service beef, getting an alcohol license etc, and in then down the line get a lawyer/ consultant to assist us with the same.

    Could you advise the legal requirements, or if there is an office or details document where i can find all these things out..

    Kindly get in touch ASAP, as my Partner and i are keen to move forward with this on a fairly immediate basis.

    Looking forward to hearing from you,
    NT

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  • Keerti said:

    Hi Scott!
    I am planning to open a coffee shop in Kolkata. none in my entire family has ever been in restaurant business. Can u please suggest me on the paper work I mean the permit and the license. And is it possible to hire even the furniture or we have to buy our own? It will be great if you could give me ur number or the contact number of a Restaurant consultant in Kolkata so that we can get all our queries solved.
    Looking forward to have ur prompt response.
    Thanks,
    Keerti

    Reply This Comment

  • prithi said:

    Hi, I am planning to start a restaurant in Chennai, India. I have a different recipe in my menu. Like the pure Veg., south Indian foods like Kolkata, Panniyaram and other items which is normally not available anywhere. So I would like to get advice on this idea from you.

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    P SURESH Reply:

    Hi, I have nearly 400 square ft commercial space (ground floor) in south Chennai located 8 km away from Chennai. This area is surrounded by nearly 2000 apartments (Arial township). Since I am new to this field, I require good partner. if you are interested, kindly revert back this mail.

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    Kumar Reply:

    Hi, I am management professional working overseas. I am in search of a partner for setting up a restaurant in Chennai or South India. Kindly revert, if you are looking for a professional partner with big dreams of setting up a professionally managed food chain in India, which can be built on with business ethics and sincerity. Looking forward for your reply. Regards, Kumar

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    PK Reply:

    Hi, I am an NRI planning to set up a food business in Chennai and looking for professional partner. Please revert if you have serious plans for setting up restaurant in Chennai. Regards

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    AB Reply:

    Hello Sir,

    I am a hospitality consultant, i saw your post, im assuming, you must have already started by now.Do let me know if you need any assistance.

    Regards.

    Reply This Comment

  • J S said:

    Hi, I want to open a restaurant in New Delhi. Nobody have in my family & friends circle in restaurant business. Can u please suggest me how to start it? What kind of permit and license required. Is there any good consultant in New Delhi, so that I can get all the answer of our queries? Please advise me in this regards.

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    Mrs. Usha Reply:

    Hello, We are planning to start a fast food restaurant in East Delhi. If you are interested we can meet and discuss possible partnership. Please get in touch if interested to offer your services.
    Thank you…

    Reply This Comment

  • S D said:

    Hi’

    I am starting a restaurant in Boston, I would like to know what is the government procedure to start up restaurant business in US, also tell me what are the licenses (with details) required for setting up a restaurant?

    Thank you

    Reply This Comment

  • S C said:

    Hi, I am starting a snacks bar in Kamla Nagar, Delhi. I require a strategic partner or consultant in deciding upon the menu and to train the chefs. If you know someone then kindly contact me by replying here.

    Reply This Comment

    A S Reply:

    We are a Delhi based firm and are into designing and setting up of restaurants and food outlets. We can get you in touch with restaurant consultants who can give you proper guidance to set up and operate a snack bar. You can get back to us on by replying here.

    Reply This Comment

    Chayan Acharyya Reply:

    I would like to inform you that if you really want to get the franchisee of different brands in several category like food and beverage, hotels, clothing, schools, Jewellery, retail, play school, beauty saloons e.t.c. then do contact me. I can guide you to get the franchisee as soon as possible.

    Thanks & Regards
    Chayan Acharayya
    M: +91 8447601058

    Reply This Comment

  • R D said:

    Hello There, I am working as a chef in a Mexican restaurant. I am looking forward to start a restaurant in MD. Does anyone have any ideas knowledge of this type of business? I really need to know everything about opening a restaurant..

    Reply This Comment

  • F B said:

    Hi, there, I am planning start a small restaurant Business. Can anyone give me some ideas for this type of business as I don’t have experience of this business. Also I request you to give some alternatives to buy industrial kitchen utensils for my Restaurant…

    Reply This Comment

  • S K said:

    Hello,
    Me and my partner want to start a healthy food restaurant business in PA to start with based on franchise model. Can you suggest how to go about it and we are ready for joint ventures or partnerships. I am planning to open this restaurant next month.

    Reply This Comment

  • VK said:

    Hi,
    I am willing to open a restaurant in a small city. The location is quite good and I own the space, so no real estate expenses required. Could you please provide me some ideas as to how to approach the same?

    Regards

    Reply This Comment

  • RJ said:

    Hi ,

    I am looking forward to opening a restaurant. Although from service industry, this is completely new for me . I will appreciate if you could provide me contact number of a consultant who can guide on the same . Some early reading materials on the same would also be very helpful .

    Thanks in advance

    RR

    Reply This Comment

  • Scott Wilson said:

    SM,
    There are management consultancies available to help you. But I would suggest you to spend more time in details and research about this business. If possible, get a job is some restaurant to get the exact details.
    Thank you.

    Reply This Comment

  • PR said:

    Hello Sir,
    I want to start my new restaurant in nashik but I don’t have any experience how to start it but I konw very well if my foods are very testy any like to customer they will come regular & I want to give them new food items, I have unique ideas about my restaurants its help to me a gaining in small time. But a don’t actually understand basic things please provide the necessary guidence its really help to me.
    Thank you

    Reply This Comment

  • AB said:

    Hello Sir,
    would like to know
    1. Legalities of running a restaurant
    2. Staff and Chefs Specialized in cooking North Indian or South Indian with Continental and Chinese.
    3. Profit margins
    4. Total investment and running expense without including rent
    I know There are management consultancies available but if you can help me out a little bit before I go to any of them it will be appreciated awaiting the pleasure of a early reply thanking you from the bottom of my heart.

    Reply This Comment

    Scott Wilson Reply:

    AB,
    Legalities, you need to comply with the food and heath department of government’s terms and conditions. That you can search from the official website of government. As far as staff is concerned, you need to contact some recruitment agency for this. Total investment will depend on what scale you are going to do your business.
    Thank you.

    Reply This Comment

  • BD said:

    Hi,
    We at Veloxian Learning and Consulting, offer all Technical Knowhow and Consulting Services required to Start, Own and Operate and Maximize profits from your Hotel/Restaurant Business. We can provide Trained Manpower and Conduct on the Location Training of your Existing staff to effect Rebranding. The Global Partners of American Hospitality Academy, we are based at Bhubaneswar, India and currently have our operations in Egypt, Malasia and West Africa.
    Thank you.

    Reply This Comment

  • TS said:

    Hi scott

    Hope you are doing well

    I want to ask some questions related to restaurant business:

    1 – what is the profit margins after removing the food cost

    2 – what are the potential problems that a properitor will face while running a restauarant

    3 – what we should avoid that our restaurant should not fail

    4 – what are the legal formalities in mumbai for a restaurant.

    I am planning to open a 100 seater Indian cuisine restaurant in a densely populated area and have a gut feeling it should do great business in future Insha Allah.

    This is my first restaurant and I am investing around 30 lakhs so your valuable advice will help me a lot

    Thanks in advance.

    Reply This Comment

  • DP said:

    Hi,
    I am under the process of constructing a hotel, some of my friends suggest me to run the business as a CLUB and some suggest me to run it as a HOTEL. Which one would be preferable and would also like to know the difference between these two?
    Thank you.

    Reply This Comment

  • SB said:

    Hi,
    I am starting up a fast food joint looking for for an expert who can really help me out in setting up the joint. I am done with all the legal licences required for the joint. I need a restaurant/fast food consultant who can help me to start the restaurant and guide me about the taxes and other financial aspects.
    Thank you.

    Reply This Comment

  • SB said:

    Hello people,

    Just completed conceptualizing, designing and implementing my first boutique resort in Nainital. The place has been nominated by outlook traveller as one of the best places to visit this summer just few months into operations and has already been covered extensively by all the hospitality newspapers, India today and other Reliable agencies.

    I am currently working on my business plan to start a top end restaurant in Delhi and would be looking for investment options very soon. The concept is very unique and utilizes my experience and imagination.

    Thank you.

    Reply This Comment

  • SU said:

    Hi
    I am planning to start a chain of restaurant , which would serve quality pure Veg., south Indian food, snacks and soft drinks. I would first like to start with one and then expand into few numbers in the near future. I have planned the items/menu that would would be served and have also decided the price factor. Please advise me what are all the procedures to start this business in India like the license part, certificates etc required for this.

    Also please help me with a model business plan so that I can work out the cash flow there, can you tell me what is the government procedure to startup restaurant business in India, also tell me what are the licenses (with details) required for setting up a restaurant at nh-2 near agra,up ?
    Thank you.

    Reply This Comment

  • SURESH MEHTA said:

    Chineese restaurant recently opened in our locality in south kolkata without any conscent of House owner,basically permission was granted to run beauty parlour but now they switched over to Restaurant.
    pl. guide me how to take action with leagal boundries to stop such restaurant.

    Reply This Comment

  • rahul janawlekar said:

    Hi ,
    I am a hotel management graduate with around 4 years of work experience, I am excellent in handling operations , I am having a capital investment of around 30 lakhs plus 10 lakhs for running the restaurant at no profit situation for some time. I want to start a family restaurant with bar can u help me suggest some franchise options from whom I can take the brand name and expertise and run the restaurant serving multi cuisine but specially tandoor .

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