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How to Start a Restaurant Business in India?

Restaurant Business in India

A restaurant business needs a lot of capital investment. However, if you look into a variety of restaurant categories and eating joints, you can decide if it fits your budget to start your dream restaurant.

These are the categories of restaurants that you can think of investing in:

  • Fast food
  • Coffee pubs
  • Fine dining
  • Ethnic restaurants
  • Theme based restaurants
  • Buffets and cafeterias
  • Café and bistros
  • Pop up restaurants

There are more categories of restaurants that might fit your budget, such as, a food truck, like they have shown in the Hollywood Chef movie. The minimum capital investment to start any high end restaurant is at least one to two crores. If you start a franchise like McDonalds, you have to pay the set royalty annually to the franchisor.

Plan your finances

start a restaurant business in indiaYou will find bank loans, but schemes like the CGTMSE scheme is available to provide you loan without collateral, only if you have a strong experience and a business background to show. Many national banks too have made this scheme available to people who are looking to start small scale or micro enterprises. The range of getting this loan is up to hundred lakhs, but under the scheme, you can get a loan up to sixty five lakhs. You can repay this loan in a span of five years.

Many national and state banks make this loan available. A few of these banks are, ICICI, SBI, Federal Bank, Bank of Maharashtra etc. This is a set up established by Government of India to help small and micro enterprises to grow and add to the economy. You will get more information on the banks available on the following link.


Location is important

If you already have a business background or if your business plan is thorough with a relevant experience handling a business, you can use that experience to avail this loan. This works like an overdraft facility where you can pay a certain percentage of the amount that you use. Once you get the loan sanctioned, you have to scout for a location that is easily accessible to crowds, has ample parking space and commute facilities. Most of the restaurants are established close to the main road, or are in the vicinity of the main road.

Menu matters most

The next thing you can do is create a menu and decide what dishes, you will serve. Estimate the quantity of raw material and grocery items and cutlery you need. Also, an estimate on how much you will be spending on gas energy, power consumption etc. must be measured. You can start hiring employees and training them to work at your restaurant.

You may need the following employees for a restaurant:

  • Numerous experienced chefs and a masterchef
  • A receptionist
  • A restaurant manager
  • A marketing and promotions manager
  • Housekeeping staff
  • waiters

Offer what your customers  are expecting

You can start a restaurant with this staff and decide how you want to plan the menu and entertain your customers. You could have themed music or promotions and offers for the week, or anything creative you can think of. Your restaurant is entirely your idea if you are not franchising. You can brainstorm numerous ideas for creating an exotic menu, creating unique marketing and promotion strategies, and make waves in your business. Any business needs passion, dedication, and continuous work that show consistency.

Make sure decoration matches the taste

With all the licenses and registrations in place, once you have the capital, you can lease a place and choose the interiors, and other nuances you wish to have at your restaurant. Same goes for starting a coffee pub or a bistro. If you want to start an ethnic restaurant, you can decide what is the specific ethnicity you want to start this restaurant business. If it will be Thai, Japanese, Italian etc.

Branding is important

You can also decide on the uniforms of the waiters, and drinks and platters that you want to make available, etc.

If you want to make liquor available at your restaurants or pubs, you need permissions to stock and sell liquors at your restaurant.

Sadiq Iqbal

Sadiq Iqbal is the Lead Author, Editor and Head of Operations at Business Definer. Sadiq has a Masters in Business Management as well as years of experience, working in various business management roles at multiple organizations. Since joining Business Definer, Sadiq has helped numerous founders and business aspirants solve their most difficult problems and get their entrepreneurship dreams kickstarted.

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