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How to Open a Restaurant in India – Complete Guide for 2022

Last updated on: October 7, 2022 by Mani Karthik

So you want to open a restaurant, but not sure where to start. Worry not. Here’s your guide on how to open a restaurant in India, easily.

Before the pandemic, the restaurant business was one of the best go-to options for Indian entrepreneurs and business owners. From roadside stalls to Michelin star restaurants, Indian business owners served the food-loving population and made fortunes for themselves. As a result, the restaurant business became one of the biggest service sectors in India, dwarfing the film industry by 20 times.

Now things have changed for the worse. People stopped eating out. Experts predict the revenue will plunge by as much as 40-50% . Starting a restaurant business in the middle of a pandemic sounds like a bad idea.

But all hopes are not lost.

Business owners have already started to find new ways to stay profitable. Restaurants are now focusing on online sales and takeaways. According to yelp, in the last quarter(Q4) of 2020, the number of restaurants opened has surpassed 2019 Q4.

In other words, the pandemic shifted the basic rules of the restaurant business. Just adopt the change and you can stay profitable.

Wondering how to adopt these changes and start your restaurant business in India? Well, this guide is for you.

1. Decide on the type of the restaurant

2. evaluate the cost, 3. get funding, 4. licenses required to open a restaurant in india, 5. hire your staff, 6. work on your menu, 7. take care of your delivery process, 8. marketing, 2. customer service, 3. marketing, how to open a restaurant in india.

Before you secure funds, talk to advisors (or even lift your fingers), you should ask “ What would be the service style of my restaurant? “. The answer will affect all the subsequent steps as well as your business itself.

Depending on your vision and fundings you can go for any of the following types:

• Casual dining restaurants
• Fine Dining restaurants.
• Food carts/ tracks.

Next comes the concept. Local, heritage food, continental , chef’s special – successful restaurant businesses tend to take inspiration from local food pallets and preferences. Even popular culture, art and sports can be sources of inspiration.

Once you decide on your service style and concept, think about interior design and menu. Your service style, concept, menu and design- all four should be congruent. For example, there should not be any old movie posters on the wall in a very traditional South Indian dining restaurant. However, that poster can easily fit in if you have a Bollywood themed cafe.

Also to achieve growth during Covid-19, your interior design plans should take practises like social distancing into account. That means on-premise customer journey should involve a minimum number of face-to-face interactions. The sitting arrangement also must allow at least 2 meters of the distance between the tables.

However, you can almost totally skip this crucial stage if you start a dark kitchen. Dark kitchens are online-only restaurants with no establishment. This is basically a fancy term for some passionate cooks preparing meals in a kitchen and selling online.

Opening a dark kitchen is a nice option as the set up cost is way too low and people now prefer to order online.

Like any business, the restaurant business involves some cost. Before you jumpstart your business, having a good idea of both operational and set up costs is a good idea.

Irrespective of the type of your business you have to bear costs like:

Food cost: This is no brainer. You need ingredients to prepare food. Ideally, your food cost should be in a ballpark of 30% of your item price. Connect with some well-reputed suppliers to lower the cost and ensure a constant supply of food materials.

Labour cost: You need to pay your workforce to run a business, right? Well, labour cost makes up a huge chunk of your total expenses. The rule of the thumbs here, more skilled or specialized teams would cost you more. Consider your offerings before hiring. If you are running a fine dining restaurant, you need chefs with years of experience. If it’s a street-side restaurant, you still need competent staff but may not be the cream of the crop. More on hiring staff will be discussed later in this article.

Rent: When you are renting a place, calculate your operational cost including rent. The closer you are to a busy part of the city, the higher the rent will be.

Equipment: Purchasing the right equipment and regular maintenance swells up your total cost.

Licenses and legal permissions: To run a business in India you need Govt permission and licenses (trade license and FSSAI ). These are not free and renewals

Marketing: The restaurant business is quite competitive and customer loyalty isn’t easy to earn. You need a decent marketing budget to stay ahead of competitors.

Starting your restaurant business is a costly affair. According to some real owners, the setup cost of a decent size restaurant can go anywhere from 15 lakh to 1.6 crores depending on the location, menu and other factors.

To collect a hefty sum like that, use any of the following(or try multiple at once) methods:

Self-funding: If you can invest out of your pocket then you are in luck. You just skipped one of the biggest hurdles without much headache. For the most, this isn’t the case. There are other ways to collect the funds thankfully.

Loan: Many banks offer loans to future business owners and entrepreneurs. The process involves a lot of paperwork and they do look for collateral.

Funding from investors: Investors occasionally fund restaurant businesses. When you have a track record of running successful businesses, it’s easier to get their money. However, investors are really cautious about their investments. Expect a lot of questions and a certain extent of loss of freedom if you walk on this path.

Crowdfunding : Crowdfunding platforms are great if you have a great story. Many restaurants with interesting themes or stories( example ) successfully collected lakhs of money from platforms like Kickstarter, Impactguru and Crowdfunder.

To run your business smoothly and legally you need to have licenses and pay taxes. Yes, it’s a lot of paperwork. But you can get your licenses easily if you know where and how to apply.

FSSAI License

For any kind of restaurant business in India, including dark kitchens, the FSSAI license should be the first license to obtain. Having a FSSAI license means your business meets Govt’s food safety standards.

There are three types of FSSAI licenses:

• FSSAI registration: For very small food businesses with less than 12 Lakh turnover annually.
• State registration: For small restaurants to midsize restaurants with annual turnover between 12 lakh to 20 crores.
• Central License: For large restaurants and food chains with more than 20 crores annual

You can apply for it on the Foscos portal with Form A or Form B along with other self attested documents.

Health/Trade License

You can get a health/trade license from local municipal authorities or the health department. It would cost you around INR 500- 50000 depending on your state rule and other factors. Usually, you have to wait for a maximum of 60 days after the form submission. Municipal corporations can shut down restaurants if you don’t have/renew your license. In other words, don’t forget to renew your license every year.

Eating House License

According to Indian law, any place that offers food and beverages for public consumption is an eating house. Since restaurant businesses of all sizes are eating houses by definition, they must have an eating house license.

How can you get it? – Start by registering yourself on the official website of the state police. Submit your documents next. At the last stage, you have to visit the Additional Commissioner of police for the verification of your application.

Fire Department NOC

A NOC ( no-objection certificate) from the fire department is a must for any food business. This ensures said food business doesn’t cut corners on the matters of fire safety.

This certificate costs nothing.

All you need to do is register on the state fire department website and submit documents. Once you set up your fire security measures, the dept will provide NOC after inspection.

Like all businesses (with a turnover of more than 20 lakhs) you need to obtain GST registration as per the rules of the Govt of India.

You can easily register your restaurant for GST online . Usually, it gets sanctioned within 5-7 days without much paperwork.

Apart from these licenses, depending on your business, you may want to apply for other licenses like a liquor license, lift clearance, music licence etc.

The restaurant business is a part of the service industry. Like any other service-based business, your success depends on your staff and customer service.

However, the grim reality is 41% of restaurant owners in India struggle to hire the right candidates. Fortunately, you can make it easier for yourself with proper planning:

Start your hiring by having a clear idea about which roles you want to hire for. Most businesses should hire for these roles:

Restaurant manager: Your restaurant manager will oversee daily operations, resolve conflicts and ensure your business operates smoothly. This person will be the most important individual. The ideal candidate should have at least some experience of managing restaurant staff.

Cooks/chefs: In your business, food is the star of the show, period. And your chefs/ cooks are the ones who make your customers fall in love with your menu. A good cook, like an artist, adds his/her own twist to the recipe and makes your items lip-smacking good. Be it a high-end restaurant or a food stall, your chefs/cooks should be passionate, competent and good team players.

Serving/delivery staff: Your customers will have the most interactions with your serving/ delivery staff. You need someone who can work under pressure, courteous and professional.

How to hire?

There are several ways you can attract the right candidates. For the starter, good old newspaper ads with detailed job descriptions work well.

You also have social media. Feel free to post your requirements on food lovers groups and job seekers communities. Be upfront about your expectations and job benefits. You can even run a social media campaign.

Another great way to spot great candidates is through referral. If you know someone who is working in this business, ask for referrals. There is always an ex-colleague or friend who can take up the mantle.

Sometimes hiring an agency works wonders. They can find well-matched talents from their wide network and send them for interviews.

Your main product is your food. It can make or break your business. That’s why you should carefully design your menu.

Start by considering your customer’s preferences. Are they in love with local cuisine? Then introduce popular dishes and add a local twist to popular foreign dishes.

Are your customers open to experimenting with exotic food? Give lesser-known international dishes a chance.

Also, there is a huge scope for unleashing your creative soul. Talk to your cooks and come up with fusion dishes. Experiment with food presentation.

In a nutshell, finalize your menu by combining both customer preference and creativity.

A great food delivery service was always a crucial component of a restaurant business success. However, after the covid-19 outbreak customer preference has swung towards online delivery even further. No wonder companies like Zomato and Swiggy experienced massive growth in 2020 even after almost a year-long lockdown.

If you want to succeed in this “new normal” you need to upgrade your whole delivery system.

Plan your delivery strategy: A robust delivery process starts from a well-thought plan. Which items you want to deliver is the first thing you want to figure out. Some food items may get spoiled or start smelling bad relatively faster. Those should be taken off from the delivery menu.

The area you want to cover is also important. Too far away and you will run into the risk of making zero profit. Say yes only if the price covers all of your expenses and earn you at least some profit.

Hire your delivery team: Getting your own delivery team is a great option. You will have total control over who is delivering your food, how and when. Unlike other delivery services where you have to pay based on your sales, you pay your team a fixed salary.

Hiring a delivery team is pretty straightforward. Put advertisements on paper and post your requirements on social media. Don’t forget to do a background check before handing out appointment letters though.

Partner with delivery services: Most restaurant businesses can not afford a decent sized delivery team, at least at the beginning. Teaming up with a delivery service provider can work for them pretty well.

Swiggy and Zomato are the most well-known options out there. However, in our opinion, there is a big downside. Both of these companies charge up to 25% on every sale you make. Deductions of a large amount like that per sale do more harm than good , especially in these hard times. Even FRAHI had to appeal to both Swiggy and Zomato to cut their commission.

The barrier of entry in the restaurant business is low. Anyone can start his/her business anywhere. This makes the restaurant business very competitive.

It’s crucial to stay on your customers radars. And you need a solid online marketing strategy, more than ever, to accomplish that. No matter even if you are located in a metro city or tier 2 & 3 cities.

Because people are less likely to go out right now. And more importantly, India has 622M internet users and 77% of them are from tier 2 cities.

Your online marketing starts from having an online presence. You can hire developers and build a site for your business. However, it comes with a hefty price tag and you need to find competent developers first.

Alternatively, you can take an easier route- use the Dukaan app. With Dukaan, you can set up a website where your users can place orders, track orders and pay using secured payment gateways. And you can do it all by yourself. No prior technical knowledge is required.

Once you set up your website, start marketing your business.

Social Media Marketing: Social media is a great place to start your marketing. These platforms allow you to spot your potential customers and then target them through advertisement.

Creating a business page on your social media of choice is the first step. Just add your bio, fill up your business location and other details and start posting cool photos of food or maybe your restaurant. Be constant with your posts. Then you can move on to SMM advertisements for better reach and more sales.

Facebook and Instagram are the two best platforms for marketing restaurants. We have a solid guide on how to do a great job with your Facebook ads . Once you have a grip on the basics of social media marketing, you can plan creative campaigns with specific goals/ occasions in your mind.

Google Adwords: Google can be a great online traffic source for your business. First, you want to optimize your pages and product descriptions based on your targeted keywords. This is basic SEO 101.

Next comes Google Adwords.

In case you don’t know how Adwords results look, here is an example. All search results with the prefix “ad” are Adwords results.

To start your Adwords campaign, list several keywords that your customers may use to find and order food. Then start an adword campaign based on those keywords. Your business will be on the top of the search results.

Usually, you get a great ROI from Adwords. The reason is, if your customers find you by using a high purchase intent keyword ( ex: biryani centres in Kolkata) you will make some sales.

Influencer marketing: There are some influencers with large audiences. Their followers engage with the influencers regularly and trust their opinion. What if you could get some of them to promote your restaurant before their audience? Well, this type of marketing has a name: influencer marketing .

According to 71% of marketers the quality of traffic from influencer marketing is better than other sources.

The concept of influencers marketing is easy. Just find some influencers who are popular among your targeted customers. Then hire them to upload sponsored posts and videos.

Apart from these marketing channels, you can utilize giveaways, webinars and traditional methods like flyers.

Key Elements of a Successful Restaurant

The success of your restaurant depends on doing a few things well.

The biggest driver of restaurant business success is a menu that makes customers’ mouths water. Tasty foods with a unique touch, presentation and hygiene- these are things that keep your customers hooked.

Nothing converts one time visitors into regulars better than great customer service. After a positive experience, customers even spread the word sometimes.

Therefore, you want to focus on offering amazing customer service. Your staff play a vital role here. Courteous and professional service staffs are no less than assets.

A well-planned marketing strategy separates your business from others. When you run creative ads, customers take a note and remember your business every time they want to order anything.

No one likes to pay for poor services. At the same time, if the price is too good to be true, skepticism lurks in the customer’s mind. Successful businesses walk the fine line by striking a balance. Their customers feel that they got what they paid for.

The ambience of your restaurant has a direct effect on your customer experience. More so, if you are running a themed restaurant or cafe. By just maintaining your establishment spotless and well organized you can win some major customer experience points.

There you have it, a complete guide on how to open a restaurant business in India. The restaurant business was always one of the most profitable ones. Due to the covid-19, things have changed a lot. But that doesn’t mean you can’t be profitable. Just mind the new changes, pace with new reality and you will be successful.

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How to Open a restaurant in India : All you Need to Know

• March 29, 2022

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

Here are 13 effective tips that will help you 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 

• 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.

• 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?

We covered the dos’ while you open a restaurant in India. Now, let’s talk about the don’ts’.

• 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. 

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How to Start a Small Restaurant Business in India

• October 14, 2022
• by Rupak Chakrabarty

It is without saying, the restaurant business is a profitable opportunity in India. Also, it is one of the most preferred businesses for young entrepreneurs. However, it’s not an easy business. Find in this article, a step-by-step guide to starting a new restaurant in India with valuable inputs like market demand, costs, location, interior, staffing, and more.

Depending on the menu style, preparation methods, and pricing there are different types of restaurants you can find. These are ethnic, fast food, fast casual, casual dining, fine dining, quick service, family style, barbeque, cafe, pub, tabletop cooking, etc.

The restaurant business comes under the food retail segment. Currently, it is a Rs 75000 crore industry according to industry experts. Also, it is growing at an annual rate of 7%. Some of the highest-growing segments are quick-service restaurants, casual dining, cafe, and fine dining. Apart from these the pub, bars, lounges, and clubs are getting popular these days.

Although the restaurant business is a highly lucrative opportunity for young entrepreneurs, it takes a lot of effort to make it successful. It needs a lot of dedication, long hard work, proper planning, and the willingness to face startup challenges.

13 Steps to Start a Restaurant Business in India

Step 1: check if the restaurant business is for you or not.

The brick-and-mortar restaurant business can be difficult to scale successfully. It requires upfront capital expenditure, operating expenses (especially rent), and the different other issues. Additionally, keeping a restaurant alive and relevant for four or five years is extremely challenging.

You need to constantly analyze the good habit, buying nature, and pricing strategy of your restaurant. Also, you need to be extremely good at accounting. So, check whether it is a business for you or not. And if you find the answer NO, then the rest of the article is purely a waste of time for you.

Read:   Best Food Business Ideas in India

Step 2: Decide the Restaurant Style

This is the first step you need to consider very carefully. Because the other following steps depend on this particular decision. Determining the specific restaurant style depends on your investment capacity and the eating habits or preference of the local demographics. After deciding on the concept, you can determine the menu, interior theme, sitting style, etc.

Step 3: Franchise or Own Brand

Currently, you can find a lot of national and international brands that are offering franchise opportunities on a pan-India basis. Certainly, initiating a franchise business is an easier option than starting your own. However, opening own brand ensures certain advantages.

If you start your own brand, you don’t need to share the profit. Additionally, you don’t need to spend money on the franchise fee. However, you will need to form the SOP of your own and you need to take care of the entire promotion responsibility.

Step 4: Craft the Business Plan including Startup Cost

In initiating a franchise outlet, the parent company will provide you with a cost structure. However, if you are opening your own brand, you will need to craft a project report. In this business, financial analysis plays the most pivotal role. Here we have listed some of the major costs.

a) Cost of the Venue

It is the highest expense in this business. You have to calculate the rent of the place with electricity, water bills, and maintenance cost (if any).

b) Interior Cost

You will need to decorate the interior according to the restaurant theme. Broadly, it includes flooring, wall decoration, ceiling, air conditioner, lighting, music, and finally furniture.

c) Kitchen Equipment Cost

You will need to arrange the kitchen equipment and tools. It may include different crockery sets, burners, storage, refrigerators, microwave, and other gadgets or utensils.

d) Licensing, Permission & other Pre-operative Expenses

You will need to calculate the pre-operative expense including the licensing and permissions. Also, it includes consultancy fees and Govt. fees.

e) Technology Cost

You won’t be able to run the restaurant successfully without the help of technology. You will need a customized POS software solution for keeping the daily accounting, stock inventory, etc. So, you need to calculate the cost of procuring the POS.

f) Manpower Cost

The restaurant needs different types of personnel including a chef, water, counter staff, etc. So, you need to calculate the manpower resource you need and the approximate cost of the salary overhead.

f) Marketing Expenses

You need to invest some money in marketing and promotion. So, you need to prepare a marketing plan and calculate the promotional activity cost.

Step 5: Arrange the Finance for the Restaurant Business

After calculating the startup budget, you will need to get finance ready for opening the restaurant. If you are a first-generation entrepreneur, then it’s better to start the restaurant with your own fund. However, you can also apply for a bank loan or venture capital investment. Usually, banks ask for collateral security.

So, you need to arrange that. On the other hand, angel investors look for profit potential, expansion plans, and business models. And after satisfying these factors, you can avail yourself of finance. Also, you can open the restaurant on a partnership basis to get financial help.

Step 6: Select a Restaurant Name & Logo

It is another important aspect you need to consider carefully. At the time of business registration and licensing, you will need to provide the restaurant name and logo. Actually, the name and logo give the first impression to the customers of your brand. So, keep your name simple, relevant, and catchy.

Additionally, ensure that the restaurant name is marketable and has domain availability. Before finalizing the name, check whether the domain is available or not. Because you are surely going to launch a website for your restaurant.

Step 7: License & Permission for Restaurant Business

First of all, the specific license required depends on the specific location where you operate the restaurant. However, in India, you will find some of the requirements are common. Here we have listed the basic licensing and permit requirements.

a) Business Registration

If you are planning to run a legally-compliant restaurant business, registering your company is mandatory. Based on your scale of operation, select a business structure. The popular business formations in India are sole proprietorship, partnership, or Private Limited Companies.

b) Professional Tax Registration

Professional Tax registration is also a must. You can pay the tax either quarterly or yearly basis.

c) GST Registration

You will need to register with GST to get the GSTIN number. If you have more outlets in different states, then you need to apply state-wise.

d) Trade License

Obtain the Trade License from the local Municipal Authority. It is a must. And only the local corporation can issue this license.

e) FSSAI Registration

FSSAI stands for Food Safety and Standards Authority of India. For a restaurant or eatery operation, FSSAI registration is a must.

f) Liquor License

If you serve alcohol, then you will need to obtain a liquor license for your restaurant. Obtaining a liquor license requires a lot of time. Also, it is expensive.

g) Trademark Registration

Secure the logo with Trademark Registration. Initially, you can use the TM mark. And after getting the final registration, you can use the R sign.

Step 8: Select a Proper Location

The overall success of a restaurant depends immensely on the location. In India, the metro city areas are the best places to start this business. Some of the most potential cities are Mumbai, Bangalore, Delhi NCR, Pune, Kolkata, Chennai, Hyderabad, Goa, Ahmedabad, Indore, etc. However, at present, restaurant businesses are performing well in almost all cities and towns in the country.

Good visibility is a crucial factor in the restaurant business. Also, try to occupy a space on the ground floor. However, it is not applicable to the find dine or food court restaurants. Providing a parking facility is a must these days. Finally, you must acquire a commercial property and NOC from your immediate neighbors.

Step 9: Establish the Brick & Mortar Restaurant

Now it’s time to decorate the venue. Try to have a floor plan before you start working on it. Hire an experienced interior designer to get to job done rightfully. Depending on the concept, you will need to provide the ambiance. Color combination and lights play the most vital role in the interior. Procure the furniture and fixtures according to the theme of the restaurant. Decorate the outer wall also. A good quality sign is a must on the outer wall.

Step 10: Get the Resources

First of all, craft an HR plan. You need skilled and experienced employees to run the restaurant properly. Broadly, you need kitchen staff, service staff, and management staff. Also, you can think about keeping a manager.

Get the right POS (point of sale) software for your restaurant business. You need it even if you run a niche restaurant. Ask the company for a demo presentation. Before, procuring the software, check if it is effective and beneficial for your business.

Step 11. Buy Equipment

You will need to buy a range of tools and equipment to properly run a restaurant. Some of the basic types of equipment that need to be arranged are the following:

• Refrigerators/ Freezers
• Cutting Surfaces
• Racks & Shelves

In addition, you will also need to buy chairs and tables as per sitting arrangement, condiment dispensers, salt and paper shakers, utensils, etc.

Step 12: Create the Menu and Tariff

Depending on the restaurant concept, style, and taste of the local demographics, you have to craft a menu and fix a pricing chart. Try to keep some basic food items with designer items. Also, you can offer a combo or Thali-type menu which is very popular in India. Try to keep the foods that need similar ingredients to cook. It helps in reducing inventory costs. Also, provide the foods that need ingredients that are available in the local market easily.

Step 13: Choose Quality Suppliers

Getting fresh ingredients at your doorstep on the regular basis is crucial for smooth operation. Ensure, that the suppliers provide quality and up-to-the-mark materials for restaurant use. Also, check the price for the bulk purchase. Try to have at least more than one vendor in each segment.

The restaurant business is definitely a self-rewarding career for passionate individuals. However, it requires proper planning and dedicated implementation to get long-term success.

Hello, I’m Rupak Chakrabarty, a passionate advocate for small and medium enterprises (SMEs) and the driving force behind MUVSI Consulting, where I serve as a dedicated small business coach. With years of experience in the entrepreneurial world and a deep-rooted commitment to helping SMEs thrive, I bring a wealth of knowledge, expertise, and guidance to aspiring and established business owners alike.

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How to Start Restaurant Business in India

Updated on : May 13th, 2022

13 min read

The restaurant business is one of the best options for Indian entrepreneurs as it is one of the biggest service sectors in India. The restaurant business comes under the scope of the retail food segment. Different types of restaurants are available in India, depending on the preparation methods, menu style, and pricing. The word restaurant includes a cafe, fine dining, casual dining, ethnic, fast-casual, fast food, quick service, barbeque, family-style, tabletop cooking, pub, etc.

The highest growing restaurant segments in India are casual dining, quick service restaurant, fine dining, and cafe. Apart from these the bar, pub, sports bar, lounges and clubs are also getting popular these days.

Restaurant Industry In India

The Indian restaurant industry sector is one of the fastest-growing markets in the world. As per the National Restaurant Association of India (NRAI) report, the restaurant market is expected to reach Rs.5.99 lakh crore by 2022-23, growing at a compounded annual growth rate of 9%. Despite the challenges and hardships that the restaurant owners faced due to the Covid-19 pandemic, opening a restaurant would bring new opportunities for budding restaurant owners.

Process Involved in Starting Restaurant Business

The following process is involved in starting a restaurant business in India:

Decide the Restaurant Concept

Before starting a restaurant, the first thing to do is to determine its concept. Determining the restaurant concept depends on the investment capacity and local demographics’ eating habits. A restaurant owner can choose any of the following types of restaurant concept depending on the vision and funding:

• Fine dining restaurants
• Casual dining restaurants

Once the business owner decides on the restaurant concept, he/she must decide on the restaurant theme, interior design, cuisine and menu. The restaurant interior design, service style, menu and theme must be in sync.

However, deciding on the theme and interiors is not required when a business owner starts a dark kitchen. Dark kitchens are online restaurants only with no establishment. In dark kitchens set up, an individual prepares meals in a kitchen and sells them online. Opening a dark kitchen is a good option as the set-up cost is less, and people prefer to order food online.

Create a Business Plan

After deciding on the concept, business owners should prepare business plans for their restaurants. A business plan will help the restaurant owner to plan the future development of the restaurant business and present it to any potential investor.

The business owner must also consider whether to initiate a franchise business or start his/her own restaurant. Beginning a franchise business is easy compared to establishing a restaurant. However, when an individual has his/her own restaurant, he/she need not share profit and spend on franchise fees. The financial analysis and business plan play a significant role in helping to decide whether to start an own restaurant or take up franchising of a restaurant. 

Evaluate Restaurant Costs

A business owner must have a good idea of the operational and set-up costs involved in starting a restaurant. Irrespective of the type of business, a business owner will have to bear the following costs: 

• Food cost – It is the cost of the raw materials used to prepare a dish. Ideally, the food cost should be about 30% of the menu price. 
• Labour costs – Labour cost is a critical restaurant cost that increases the expenditures while opening a restaurant. 
• Rent – The rent of the restaurant premises is affected by its location. However, it should not exceed 10% of the total revenues.
• Interiors – The restaurant owner can decide on the interiors based on the budget and concept. 
• Kitchen equipment – Initially, the restaurant owners must bear the costs of purchasing quality equipment, but they always recover these costs in the long run. 
• License – Obtaining the various licenses and registrations required for a restaurant business is essential for the restaurant. The fee to be paid to obtain licenses depends on the establishment type.
• POS system – The modern technology POS (Point Of Sale) system is required to smoothen restaurant operations and payments. 
• Marketing – Restaurant owners should ideally spend 1-2% of their revenues on marketing the restaurants. They can use offline and online marketing modes. 

Get Investments and Funds for the Restaurant 

One of the most important things to consider before opening a restaurant business is getting the required investments and funds. A restaurant owner must decide on the capital needed to start a restaurant. The set-up cost of a decent-sized restaurant may take Rs.15 lakh to Rs.1.6 crore, depending on the menu, location, and other factors. 

A restaurant owner can obtain funds to start a restaurant through the following ways:

• Self-funding – When a business owner has accumulated the required funds to open a restaurant, he/she can start the restaurant with those funds instead of taking loans. It is also a good option to open a restaurant in partnership with others since it reduces investment risk.
• Loan – A business owner can take a loan from a bank or financial institution to start a restaurant. However, obtaining a loan from a bank includes hassles as they need someone who can underwrite the loan and provide a guarantee or collateral.
• Venture capitalists and angel funding – A business owner can approach venture capitalists or angel investors in the restaurant business to invest in his/her restaurant. However, getting investors on board is difficult, especially when it is a first-time venture. Investors generally look at the restaurant’s growth potential and scalability of the business model. This option is good when the restaurant is already established and is earning revenue.

Decide the Name and Location of the Restaurant

Another important aspect that a restaurant owner needs to consider is the name and location of the restaurant. A restaurant owner should give the name, logo and premises address when applying for business registrations and licensing. The name and logo of a restaurant provide the first impression to the customers. Thus, it is essential to decide on a catchy and simple name. Also, the owners need to ensure that the restaurant name is marketable and has domain availability.

Before choosing the restaurant’s location, the owner should identify competitors in that area, study their progress and understand their business model. Evaluating the competition will help owners understand the customer base in that area, preferences and pocket size. It is always better to locate a restaurant in an easily accessible and visible place. Usually, the metro city areas are the best locations to start a restaurant business. 

Get Required Registrations and Licenses 

A business owner must obtain the required registrations and licenses to run a business. The cost of obtaining these registrations and licenses varies depending on the size of the restaurant. It is better to apply for the permits early as they take a lot of time to get approved. Without obtaining the licenses, an owner cannot start a restaurant business. All the licenses and registrations applicable to a restaurant business in India are explained below in detail.

Hire the Required Workforce

Skilled and experienced employees need to be hired to run the restaurant properly. There are different types of staff required in a restaurant, which are as follows:

• Kitchen staff – The kitchen staff comprises the cooks, support staff, food preparation staff, etc. 
• Service staff – The delivery staff, waiters, housekeeping staff, etc., are the service staff. They need to have good communication skills since they interact with customers and must be trained appropriately.
• Management staff – The restaurant’s chef, manager, cashier, store manager, etc., are the management staff, and they need to be experienced with adequate education for the role.

Design the Menu

The restaurant’s main product is its food. The food of a restaurant can make or break the business. Thus, the menu should be carefully designed. A smartly designed menu can significantly impact the restaurant’s food costs. The menu should comprise items that use local or readily available items and food that can be prepared quickly. 

Restaurant owners must decide on the cuisine they want to serve and choose the menu items based on the audience’s demands. The menu should be designed in a way that lures customers to spend. Offering a combo or thali meals menu is very popular in India. 

Arrange for Delivery Service

A food delivery service is a crucial restaurant business component, especially after the Covid-19 outbreak. Customers now prefer to order food online rather than go out and eat in restaurants. Zomato and Swiggy, two popular online food delivery platforms in India, experienced massive growth in 2020, even during the lockdown.

Thus, a business owner must arrange and plan an online delivery strategy. A business owner can hire a delivery team or partner with an online food delivery platform. When the restaurant has its own delivery staff, the owner will have control over who is delivering the food and how and when it is delivered. 

However, partnering with online food delivery platforms helps a restaurant access a wide range of customers and visibility. It also helps restaurant businesses that cannot afford a decent-sized delivery team.

Technology and Marketing of the Restaurant

A restaurant’s digital infrastructure is a significant aspect of maintaining and operating a restaurant. A versatile POS system with a range of modern digital technologies has simplified restaurant operations. Technology also plays a vital role in marketing the restaurant. A restaurant owner can use the following marketing strategies to gain customers:

• Print media – Print media is promoting the restaurant through newspapers, pamphlets, brochures, etc. Giving advertisements in local newspapers can help to attract a crowd.
• Social media – Social media makes it easy to reach a large crowd in a short period. A restaurant owner can advertise or create restaurant accounts and post content related to the restaurant on social media handles like Facebook, Instagram, Google Adwords, etc.
• Bloggers meet – Restaurant owners can reach a large number of audiences with the help of food bloggers. It is a popular trend to arrange for bloggers’ meetups and invite food bloggers to rate dishes and write a review on their personal blogs.
• Influencer marketing – Influencer marketing is asking influencers to promote the restaurant to their audiences. There are many influencers with large audiences. Their followers engage with them regularly and trust their opinion. 

Registrations Required for Restaurant Business in India

A restaurant owner needs to obtain different licences and registrations to run a restaurant business in India. The required registrations and licences are as follows:

Registering Business Entity

To start a restaurant, the owner must first choose the business entity. Business owners must decide whether to start the restaurant alone as a proprietorship firm or in partnership with others as a partnership firm. They may also establish a private limited company. 

Instead of choosing a proprietorship or partnership firm, it is beneficial for restaurant owners to choose the One Person Company (OPC) or Limited Liability Partnership (LLP) business structure. A sole proprietorship or partnership firm does not have a separate legal entity status and thus is difficult to obtain funds compared to OPC and LLP. When the owner plans to establish a chain of restaurants or create a franchising model, a private limited company structure is recommended.

FSSAI License

The Food Safety and Standards (FSS) Act, 2006, mandates a Food Business Operator (FBO) to obtain an FSSAI license. It is required for anyone involved in the processing, production, distribution, import and sale of food products within India. The FSSAI license means that the restaurant’s food items meet the government’s food safety standards.

Thus, all restaurants, including dark and cloud kitchens, must compulsorily obtain an FSSAI registration or license from the Food Safety and Standards Authority of India (FSSAI). The turnover and manufacturing capacity of the restaurant business determines whether the restaurant needs to obtain an FSSAI registration or FSSAI licence. 

Shop and Establishment Act Registration

The Shop and Establishment Act Registration is regulated by the Department of Labour of the state. The Shop and Establishment Act regulates any premises where a trade, business or profession is carried out. Thus, all restaurants must apply for and obtain a Shop and Establishment Act Registration. It is issued by the State Chief Inspector of the Department of Labour.

Business License

The restaurant must mandatorily obtain a trade license from the municipal corporation. The municipal corporation can shut down restaurants when they do not have a trade license. Thus, restaurant owners need to apply for and renew their trade licenses every year. A business owner also needs to obtain a No Objection Certificate (NOC) from at least three neighbours. When a restaurant provides liquor to its customer, it must also obtain a liquor license from the Local Excise Commissioner. A NOC from the fire department is also a must for any food business.

Eating House License

Any place that offers beverages and food for public consumption is an eating house. Since a restaurant business is an eating house, it must compulsorily obtain an eating house license. An eating house license can be obtained from the Licensing Police Commissioner of the respective city where the restaurant is located.

GST Registration

Restaurants in India are required to register under GST mandatorily. GST registration is state-specific. Thus, if a restaurant has outlets in different states, it needs to have a separate GST registration for each state. 

Trademark Registration

When a business owner plans to open a chain of restaurants or invests a significant amount of money and time into branding, it is recommended to obtain trademark registration for the restaurant name or brand. Though trademark registration is not mandatory, it is recommended as it will protect the restaurant name or brand from third parties. Third parties cannot open a restaurant with the same name or brand that has a trademark registration. It deters the use of branding by competitors.

Disclaimer: The materials provided herein are solely for information purposes. No attorney-client relationship is created when you access or use the site or the materials. The information presented on this site does not constitute legal or professional advice and should not be relied upon for such purposes or used as a substitute for legal advice from an attorney licensed in your state.

About the Author

Mayashree Acharya

I am an advocate by profession and have a keen interest in writing. I write articles in various categories, from legal, business, personal finance, and investments to government schemes. I put words in a simplified manner and write easy-to-understand articles. Read more

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How to Build a Business Plan for Restaurant in India : A Checklist

What is a business plan.

A business plan is a document that sets out the business goals of a company and how these will be achieved. It contains financial forecasts, information on the company's products, services, markets, and management team. A business plan is essential for any business, providing a roadmap for growth and development. It should be regularly updated as the business grows and evolves.

A business plan is not just for start-ups but also an important tool for established businesses looking to expand or change their operations. By setting out clearly-defined goals and objectives, a business plan can help business owners to stay focused and on track. A restaurant business plan can also be used to secure funding from investors or lenders, providing them with an overview of the business and its growth potential.

Looking to start a restaurant business? Make the process easier by registering with Amazon Business.

What is a Business Plan for Restaurant?

No matter what kind of restaurant you're opening, a business plan is essential. This document will lay out your goals, strategies, and financial projections and serve as a roadmap for the first few years of operation. Even if you have extensive experience in the industry, a business plan for restaurant is still a valuable exercise.

A business plan for restaurant forces you to think carefully about your concept, target market, competition, and financial needs. By taking the time to create a restaurant business plan from scratch, you'll be in a much better position to get your hotel business off the ground successfully.

Why is a Business Plan for Restaurant Important?

A business plan for restaurant is important for the following reasons:

• It ensures the restaurant is well-organized and has a clear vision
• It's beneficial to attract investors and secure funding
• It can provide a roadmap for the restaurant's future, helping to keep it on track as it grows. By taking the time to create a business plan, restaurant owners can set their businesses up for success.

Without a business plan for restaurant, it's all too easy to make careless decisions that jeopardize your restaurant's future. So, if you're serious about making your restaurant a success, take the time to create a comprehensive business plan.

How to Write a Business Plan for Restaurant?

Writing a business plan for restaurant can seem daunting, but taking it one step at a time doesn't have to be overwhelming. Here's a basic workflow behind writing a business plan for restaurant:

• Start by doing some market research and outlining your concept.
• Then, flesh out your business model and put together a marketing plan.
• Finally, create financial projections for your first few years in business. This is important in a business plan for restaurant as it conveys your forecasts for future growth.

If you put in the work upfront, you'll be well on your way to opening a successful restaurant. As a bonus, we have added a business plan for restaurant example in this article. Keep on reading to find out how.

Before that, let's get started with a few tips for writing a successful business plan for restaurant:

Do your research

Before you start writing, take the time to research the restaurant industry to help you better understand the challenges you'll face and the opportunities you can capitalize on. Good research can ensure that you get the best business plan for restaurant.

Know your audience

When writing your business plan for restaurant, be sure to tailor it to your reader. If you're seeking investment, focus on how your restaurant will generate revenue. For potential employees, highlight your management style and company culture in your business plan for restaurant.

Be realistic

A business plan for restaurant is not the place to inflate sales projections or overestimate market share. Instead, focus on achievable goals that will help your restaurant succeed in the long run.

Get organized

A well-organized business plan for restaurant is essential for making a good impression on potential investors or partners. Use clear headings and stylish graphics to keep your reader engaged from start to finish.

Keep it concise

A business plan for restaurant should be no more than 30 pages long, so make sure to include only the most important information about your restaurant's concept and operations.

By following these tips, you can write a successful business plan for restaurant that will help you launch a successful restaurant venture.

Components of a Business Plan for Restaurant

Let's look into the different components of a well-crafted business plan for restaurant.

Executive Summary

The executive summary is one of the most important parts of a business plan for restaurant. It provides a brief business overview, including its goals, products and services, target market, and financial projections.

The executive summary should be clear and concise, giving readers a good sense of what the business is all about. Given the importance of the executive summary, restaurant owners should craft a well-written and effective synopsis of their business to make the best impression of their business plan for restaurant stakeholders.

Company Description

A company description is an essential element of a business plan for restaurant. It overviews the business, including its history, philosophy, and goals. It also describes the company's ownership structure, management team, and business model.

The company description should be short and to the point, conveying the most important information about the business in a concise and engaging way. By providing readers with a clear understanding of the restaurant's mission and value proposition, the company description sets the stage for the rest of the business plan for restaurant.

For e.g., if you are creating a business plan for cafe, then chalk out a company description that goes out well with cafe goers.

Market Analysis

Market analysis involves researching the local market to understand the needs and wants of potential customers. This research can determine the most effective marketing strategies and target specific demographics.

Additionally, market analysis can help to identify potential competitors and understand their strengths and weaknesses. By understanding the local market and its potential customers, restaurateurs can create a business plan for restaurants that will maximize their chances of success.

If you are gearing up on a fast-food business plan, research well out on the competitor and understand the market trends. A well-researched fast food business plan can win out any potential investor.

The menu section of a business plan for restaurant outlines the specific dishes and meals that your restaurant will serve. It includes a description of the dishes, ingredients, price, and target market. Additionally, you'll need to determine how often you change your menu and whether you'll offer seasonal or speciality items.

Creating a well-thought-out menu is essential for any business plan for restaurant. The menu is one of the first things customers will see when they visit your restaurant. By taking the time to create a mouth-watering menu, you'll be sure to attract new business and keep your existing customers coming back for more.

The employee section in the business plan for restaurant details the hiring process, training programs, and policies for your employees. This allows you to go into detail about how you will find the right staff for your business, what type of training they will receive and what your expectations are.

Having an employee section in your business plan for restaurant shows you have thought about the people who will be working for you and how they will contribute to your business's success, further depicting you have carefully considered all aspects of starting and running your business.

Restaurant Design

When deciding on the layout for your restaurant, it's important to consider how you want customers to flow through the space. Whether creating a fast food business plan or a contemporary dining space, the restaurant's layout plays a heavy role.

In a business plan for restaurant, the layout maps out these details so that you can make informed decisions about your restaurant's design. Here are a few elements to consider while designing your restaurant layout:

• The flow of customer traffic. Design a space that allows a smooth flow of customers from the entrance to the seating area to the restrooms and back out again.
• Consider how it will impact food preparation. Will servers need to walk through the kitchen to place orders? Will customers be able to see into the kitchen?
• Visualize how you want customers to interact with staff . Do you want a more formal dining experience or a more casual atmosphere?

The location section of a business plan for restaurant is one of the most important parts of the document. After all, the location of a restaurant can be the difference between success and failure. When choosing a location, many factors exist, including foot traffic, competition, and demographics.

The location section of a business plan for restaurant should address these factors and more, giving potential investors an idea of where the restaurant will be located and why it is a good choice. Additionally, the section should include information on lease or purchase of the property or any necessary renovations.

With a well-crafted location section, a business plan for restaurant can give investors the confidence they need to invest in a new business. Such a business plan for opening a restaurant will get funding from the targeted customers.

Market Overview

The market overview section of a business plan for restaurant provides a detailed analysis of the current state of the restaurant industry with a projection of future trends. The market overview should include the following:

• Details on the target market, competitors, and marketing strategies.
• An analysis of the economic conditions that will impact the business.
• The market overview in the business plan for restaurants for investors to understand the opportunities and risks associated with investing in a restaurant business.

Without a thorough understanding of the current and future state of the industry, it would be difficult to make informed investment decisions.

The marketing section of a business plan for restaurant outlines how you will promote and sell your services.

Your marketing strategy should be detailed, including the following:

• Advertising, public relations, and social media plans.
• Analysis of your target market and restaurant's unique selling proposition
• A sales forecast outlining your expected sales for the first year of business is also desirable.

A comprehensive marketing plan ensures your restaurant business plan is well-positioned for success.

Financial Analysis

Any business owner knows that continual financial analysis is a key part of successful business management. You can show the stakeholders the projected revenue and expenditures by conducting a financial analysis during the early phases. We recommend hiring a top accounting professional to conduct the analysis and craft a well-thought-out analysis section of the restaurant business plan.

Things To Buy When Opening A Restaurant

Make use of this opening a restaurant checklist to ensure that you have all the essentials in place for smooth running. Buy all the essentials and get your restaurant business ready to go by registering with Amazon Business.

Ovens are essential equipment in any restaurant kitchen for many reasons. Perhaps most importantly, they provide a consistent and controlled cooking environment essential for cooking food evenly and safely.

Ovens also offer a wide range of cooking options, from baking, roasting to broiling and grilling, making them incredibly versatile. They can be used to cook large quantities of food at once, making them perfect for busy restaurants that need to churn out large meals quickly.

Whether cooking a roast chicken or a batch of cookies, an oven is an indispensable tool for any chef.

A mixer is one of the most important equipment in a restaurant kitchen. It allows chefs to quickly and easily prepare food, whether a simple dish like scrambled eggs or a more complex meal like a casserole.

Mixers also make it easy to create large batches of food, which is ideal for busy restaurants that need to serve many customers. In addition, mixers can reduce food waste by making it easy to portion out ingredients.

While some restaurants may opt for a more minimalistic approach, tables are typically one of the first things guests notice when they enter an eatery. In addition to their aesthetic value, tables also play an important role in the overall dining experience.

Customers come to restaurants to sit and enjoy a meal, not to stand around. That's why chairs are important to any restaurant's dining room. Not only do chairs provide a place for customers to sit, but they also help to create a more inviting and comfortable atmosphere.

When choosing chairs for a restaurant, it's important to consider both style and function. A restaurant can create an inviting space with the right chairs that encourage customers to linger and enjoy their meals.

For your restaurant office setup, you can check out these cool office chairs here .

Serving ware         

A restaurant is only as good as its serving ware. The right plates, bowls, and utensils can make a meal more enjoyable and memorable. They convey the desired tone and atmosphere of the restaurant.

By carefully selecting the right serving ware, you can create an unforgettable dining experience for your guests. For instance, if you are working on a cafe business plan, you need to plan out the appropriate serving ware for cafes.

For many of us, utensils are nothing more than tools for eating. But in a professional kitchen, they are so much more. Utensils are one of the most important tools a chef has at their disposal. From prep to plating, utensils create delicious and visually appealing dishes.

Utensils play a vital role in every stage of the culinary process. So do your research and find the best ones that complement your kitchen functions well. Even focusing on a dhaba business plan, utensils are still essential.

There are many reasons why napkins are essential in a restaurant. First, they provide a clean surface for diners to place their utensils and glasses. Second, they can be used to wipe up spills and crumbs.

Third, they add a touch of elegance to the table setting. Fourth, they can be used as a makeshift bib when eating messy foods. In sum, napkins play an important role in the dining experience. For business plan related to cafes, napkins are essential.

Salt & Pepper Shakers

One common staple in restaurants is the salt and pepper shaker. Many people might not think much about this humble table accessory, but salt and pepper shakers play an important role in the dining experience. For one thing, they allow guests to season their food to their own taste.

Additionally, salt and pepper shakers allow guests to add flavor without changing the dish itself. Finally, salt and pepper shakers simply add a touch of style to the table setting. Whether mismatched or coordinated, they help create a more inviting atmosphere.

However, every restaurant business plan does not require salt and pepper shakers. For example, if you are working out a cafe business plan, you don't need to plan for salt and pepper shakers.

PoS Systems          

As a budding restaurant owner, you know that efficiency is key to keeping your customers happy. A big part of efficiency has the right tools to streamline your processes. That's where point of sale (PoS) systems come in.

PoS systems take and track orders more effectively, process payments quickly and accurately, and easily manage your inventory levels. So, these days, PoS systems are very important in opening a restaurant business plan.

If you're looking to run a restaurant, you should know that pens are necessary. They're needed to take orders, make menu changes, and do many other tasks. But did you know that pens can also help to improve the customer experience? That's right - by providing pens for your guests, you can make it easier for them to fill out surveys, write down meal suggestions, and more. So, don't miss out on this important tool.

Computers are essential for almost any organization in today's business world, and restaurants are no exception. Computers can help streamline operations, improve efficiency, and allow businesses to provide better service to their customers. Indeed, a few aspects of restaurant management cannot be made easier by using computers.

Well, don't doubt it. Computers are a must-have for efficient management, even if you have a small restaurant business plan.

You know that having papers in a restaurant is very important. Waiters need papers to take orders, and cooks need papers to make food. As you can see, papers are essential in a restaurant! Without them, doing things properly in a restaurant would be very difficult.

Slicers         

Slicers are essential equipment for any restaurant that wants to serve fresh, delicious food. You can quickly and easily slice meat, cheese, vegetables, and fruit with a slicer. This saves time and ensures that each slice is the same thickness, which is important for aesthetics and cooking.

Whether you want a simple countertop model or a heavy-duty industrial slicer, there is sure to be a slicer that will help you create mouth-watering dishes for your guests.

Any restaurant owner knows that speed and efficiency are key to success. And while there are many ways to speed up the cooking process, the microwave is one of the most important tools in a restaurant kitchen. Microwaves allow chefs to quickly cook or reheat food without compromising quality.

They also save energy and labor costs since food can be cooked in minutes instead of hours. Whether planning to run a busy cafe or a fine dining establishment, microwaves are an essential part of any restaurant kitchen.

Deep Fryers

Deep fryers allow you to cook food quickly and evenly, but they also help preserve its quality. In addition, deep fryers can be used to cook multiple items at once, making them ideal for busy restaurants.

Storage Containers

As any restaurant owner knows, storage space is always at a premium. Not only do you need to store all your supplies and equipment, but you also need to keep your dining area tidy and uncluttered.

One way to free up space is to use storage containers. Using storage containers efficiently maximizes your restaurant's storage space and keeps your dining area clean and organized.

Storage Shelves & Racks

Organization is key to keeping the kitchen running smoothly for any restaurant owner. This is why storage shelves and racks are essential for any commercial kitchen. By keeping spices, pots, pans, and other equipment off the floor and organized, shelves and racks help to improve workflow and prevent accidents.

And with various styles and sizes available, you can find the perfect option for your restaurant's needs. So if you want to improve your kitchen's organization and efficiency, add these storage shelves and racks.

Cleaning Materials

You need to ensure that the place is perfectly tidy and spotless. Check out these cleaning materials to ensure your restaurant is clean and welcoming to guests. Whether working on a big or small restaurant business plan, cleaning materials are important.

CCTV Cameras    

Security is super important in the restaurant business. Therefore, you need to invest in a good CCTV camera system to ensure that the place is closely monitored 24*7. You can check out the guide for buying the best CCTV cameras .

Make sure to take the cost estimations of all these important items in your business plan for opening a restaurant. It is one of the most important steps in getting started.

Business Plan for Restaurant Example

We have covered all major aspects in this business plan for restaurant example. Here's a restaurant business plan sample to help you get started. Thank us later for this.

In this food business plan, we propose creating a new restaurant called The Gourmet Grill. The Gourmet Grill will serve various grilled dishes that will tantalize the taste buds of its customers. We have extensive experience in the food industry and are confident that we can make The Gourmet Grill a success.

The upcoming sections present a business plan for small restaurant, i.e., The Gourmet Grill.

The Gourmet Grill will be a full-service restaurant that specializes in grilled dishes. We will offer a wide variety of menu items that appeal to various tastes. We are confident that our experienced team can create a dining experience that will leave our customers wanting more.

The restaurant industry is booming, and there is no sign of slowing down anytime soon. This is good news for us, as The Gourmet Grill intends to specialize in grilled dishes. Grilling is becoming an increasingly popular cooking method, and there is a growing demand for restaurants specializing in it.

This business plan for small restaurants has considered the presence of small and big competitors offering similar menus to customers.

At The Gourmet Grill, we will focus on serving grilled dishes that are both delicious and healthy. Our menu will include grilled chicken, steak, fish, garden salads, and sides. We believe our menu will appeal to a wide range of customers, and we are confident that we can satisfy even the most discerning palate.

Our team comprises experienced chefs who have worked in some of the best restaurants in the country. They are passionate about food and know how to create amazing dishes that delight our customers. In addition to our culinary team, we also have an experienced waitstaff who will attend to our guests' needs and ensure their dining experience is amazing.

We have put a lot of thought into the design of our restaurant and believe it will be one of its biggest selling points. Our goal was to create a space that is both elegant and inviting, and we think we have achieved just that. The Gourmet Grill will be the perfect place for people to gather with friends or family and enjoy some truly amazing food.

We have chosen an excellent location for our restaurant – one that will surely be a hit with diners in the area. The Gourmet Grill will be situated in the heart of downtown, close to all the major attractions. This location offers plenty of foot traffic, which is essential for any busy restaurant .

How can Amazon Business help in Opening a Restaurant?

Opening a restaurant takes a lot of hard work, dedication, and money. One way to help offset some of the costs associated with opening a new restaurant is to take advantage of Amazon Business . Amazon Business offers restaurants bulk discounts, from food and drink products to kitchen supplies and small appliances.

Beyond just saving money, Amazon Business can also help you save time by streamlining the ordering process so you can focus on more important things, like perfecting your menu. So if you're looking for a little help opening your new restaurant, check out Amazon Business.

A business plan for restaurant in India is an essential document for any eatery, regardless of size or experience. This document will help you outline your goals, strategies, and financial projections. Whether starting from scratch or having years of industry experience, it's a valuable exercise.

We hope this blog has helped you clear all queries on a business plan for a restaurant in India. The restaurant business plan sample should have been helpful to help you get started with a similar plan for your business. Make use of our opening a restaurant checklist to help you get started with the essentials for a successful outing.

Opening a restaurant can be a daunting task, but with the help of Amazon Business, it doesn't have to be. This online marketplace offers everything you need to get your business off the ground, from start-up kits and business licenses to furniture and kitchen supplies.

So, what are you waiting for? Register with Amazon Business and start browsing today to make your dream of opening a restaurant a reality with an awesome food business plan. Use our pro tips to craft an Indian restaurant business plan that can help you get started with a booming.

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How does the restaurant menu impacts the customer?

The most important aspect of starting a business is the willingness to do so. Business ideas for women entrepreneurs need only a little bit of grit and power. Be willing to take up the challenge, decide what type of business you want to undertake, create a business plan, research the licenses and permit requirements, look for financing options and get started!

What is the procedure for opening a Restaurant Business in India?

There are various government loan schemes available to fund business ideas for women. Some of them are listed below:

•   Annapurna Scheme
• Mudra Yojana Scheme
• Cent Kalyani Scheme
•   Udyogini Scheme
• Pradhan Mantri Rozgar Yojana
• Stree Shakti Yojana
• Bhartiya Mahila Bank Business Loan
• Dena Shakti Scheme
• Mahila Udyam Nidhi Yojana

What kind of staff should be employed in a restaurant?

Women entrepreneurs add to the economic development of the country. Business ideas for women will find their funding in these schemes. Here are some of the Micro, Small and Medium Business Loan Schemes for women entrepreneurs:

●      Trade Related Entrepreneurship Assistance and Development (TREAD) Scheme

●      Cent Kalyani Scheme

●      Udyogini Scheme

●      Pradhan Mantri Rozgar Yojana

●      Stree Shakti Yojana

●       Bhartiya Mahila Bank Business Loan

●      Dena Shakti Scheme

●      Mahila Udyam Nidhi Yojana

●      Mudra Yojana

What are the types of restaurant businesses in India?

Yes, you can start a business with low capital. Create a business plan and capital requirement plan before you start looking for funding. To start with low capital, make sure you create a business plan that requires less funding in the beginning. Some of the low capital ideas include:

·        Content creation

·        Event planning services

·        Social media consultant

·        Online tutoring

·        Affiliate marketing

·        Graphic design

What factors to consider while creating a business café plan?

Here are some of the startup ideas for women to try:

·       Online business ideas for women like tutoring, consulting, career counselling, content strategist, etc.

·       Home business ideas for women include bake shops, flower shops, food/ tiffin services, yoga instructors, etc.

·       Small business ideas for women include tailoring, saloon/ beauty parlour, skill classes, content writing, graphic designing, etc.

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Home » Earn Online » How to Start a Restaurant Business in India: Stepwise Guide

How to Start a Restaurant Business in India: Stepwise Guide

Table of Contents

Restaurants constitute one of the country’s largest and most dependent service sectors. The high demand for the sector makes it an excellent choice for entrepreneurs. This is why, starting a restaurant business can be a great idea if you’re passionate about food and different cuisines. Moreover, a restaurant chain can offer an average profit of 3-6% in the current economy, with the highest of 15%. Your restaurant could be of any type. It could be a cafe, fast food, fine dining, casual dining, ethnic, quick service, barbeque, or a pub. Apart from these types, different restaurant options are available today as per different tastes of  customers, menu styles, cuisines, and other factors. The fastest-growing retail food segment in India is the fast-casual type. Restaurants fall under the category of retail food chains. Planning how to start restaurant business is necessary to achieve desired outcomes.

Steps Involved in Starting a Restaurant In India

To work out any business idea , step-by-step planning and execution are necessary. Here is a summary of how to start restaurant business in India .

1. Market Research On Restaurants

Researching the trends in an economy before stepping into any business. It is a wise strategy to follow. This can help on how to start a business in India. Adopting the right measures can help one prevent potential mishaps in their business. Doing market research can be useful in creating a unique idea. That helps us understand the people we want to reach. So that we can meet their needs. It gives us an idea of our competitors.

2. Deciding The Type Of Restaurant

How to start restaurant business? To open a restaurant,  You need to know what you want. Considering what people like, the customers they expect, and how much money they spend. Different types of restaurants cost different amounts of money to start. Customers usually like restaurants that offer different kinds of food and good quality. So when choosing what kind of restaurant to open, ensure it has what the customers want.

3. Choosing The Right Location

Choosing the right location is important. It is important to select a prime location accessible to customers. It is advisable to choose a location where no similar restaurants are close. Also, make sure that the location has a parking facility. Having a parking facility at the location is also beneficial. Visibility and accessibility ensure that the restaurant is visible from the outside. Get a No Objection Certificate (NOC) from the local authority as early as possible.

4. Deciding What’s On The Menu

Designing the restaurant menu is an important step of how to start restaurant business process. Highlight special and different food choices. Owners need to focus on making the dishes tasty and unforgettable. This will make customers remember their experience and want to come back. First, offering affordable menu items’s a good idea to attract customers. But it would help if you also planned the menu to encourage customers to spend more money.

5. Evaluating All The Probable Costs Involved

It is always important to calculate the comprehensive cost before starting any business. This can include food costs, labor costs, and overhead costs. Overhead costs include rent, kitchen equipment, interiors, license, and marketing expenses. Costing can be calculated whether it’s a small restaurant or a large one.

6. Making A Framework For The Project At A Glance

Drafting the business plan into a summary can give an idea of the project at a glance. Mention every operational move in this draft. Include the expected timelines of deliverables in it. This will be your restaurant business plan for you to work on your venture. You can use this draft even to attract investors in the future.

7. Funding And Investments For The Business

All the necessary funds may not always be available from the business owner. There are three main options to consider for funding an investment in a new business. The first option is self-funding. This is where the business owner invests their money into the venture. The next possible option is to consider taking out loans from banks. Banks will grant loans and an added interest fee depending on the money. Another option is to seek support from venture capitalists and angel investors. Angel investors invest money in new businesses to help entrepreneurs.

8. Designing The Space

The next crucial step is designing the space after deciding on the restaurant’s theme. The space should match the vibe and concept of the restaurant. It should be a pleasant and comfortable ambiance for the customers. The space should be refreshing, with adequate lighting and ventilation. It should meet the local authority’s guidelines on infrastructural requirements.

9. Hiring A Team Of The Best Possible Employees

People often consider hiring relatives, friends, and other contacts while starting new ventures. It can help us to deal with the budget. Hire the best people with your budget in positions requiring certain skills. Consider working on the most important meeting and dealing by yourself. It is more than hiring someone for the work you could do. Establish clear communication and maintain a healthy connection with your employees.

10. Purchasing The Equipment

Provide good food and service to attract customers. Ensure all the cooking accessories, heating, and cooling equipment are in good condition. Buy the ones that are of superior quality. Also, consider energy-efficient, compact options that do not take up too much space. Consider material quality and maintenance while purchasing for long-term use.

11. Connecting With Suppliers And Vendors

Establish contacts with vendors and suppliers who provide good-quality ingredients and products. Maintain communication with them and keep track of all records. Ensure that vendors on the list provide unadulterated and good-quality supplies. Explore more options without compromising quality.

12. Licensing And Documentation

Complete all the necessary licensing and documentation requirements before the opening ceremony. This can prevent potential issues and conflicts with local authorities and competitors.

13. Marketing And Advertising Before The Launch

Marketing and advertising the restaurant before and after the launch. Consider creating a social media account and a website for your business. Collaborating with food bloggers and influencers increases your promotions. This could also help you to expand your customer base.

14. Arranging Delivery Services

Arranging delivery services for customers is essential nowadays. People are always busy. They often prefer having their food delivered to their doorstep. Whether at home, hospital, office, or anywhere. Arrange food delivery services with partners like Zomato, Swiggy, Ubereats, etc.

15. Try A Soft Launch

This is an optional step. A soft launch can help you understand the customer’s needs, reactions, and remarks. This can help you to work out and sort out all the drawbacks before the official launch.

Licensing and Legal Requirements to Start a Food Business

The Government of India established a set of restaurant licenses and legal requirements. These licenses safeguard the quality of service provided. Some important permits include:

1. Food License

The Food Safety and Standards Authority of India (FSSAI) provides a license. It is of three types. They are FSSAI Registration, FSSAI State License, and FSSAI Central License.

2. Trade License or Eating House License

The State’s Municipal Corporation laws usually grant this license. This allows restaurants to operate.

3. Liquor License

To distribute or sell alcohol you need a valid liquor license.

4. Fire Department NOC

The chief fire officer must grant a No-Objection Certificate before launching any restaurant. This can need the submission of a building plan and layout of the restaurant.

5. Shops and Establishment Registration

This is a legal rule for any establishment having more than 10 employees. For different states, there are different demands to get this license.

6. Pollution clearance

Restaurants must have pollution clearance certificates. Restaurants are a pollution-causing industry due to smoke emissions. Depending upon the size, different restaurants are color categorized for this.

7. License for playing music or videos

Get this license if you plan to play pre-recorded visuals or music.

8. Tax registrations

Register for Income Tax, GST (Goods and Service Tax), and Professional Taxes in India.

9. Labor Law Registrations

This registration ensures workers’ unified wages and social security.

10. Infrastructure Licenses

Restaurants must get this license if they store kerosene, LPG, or generators.

Challenges and Solutions

Like any other business, the food business faces challenges. Adopt modern business technology instead of traditional systems. This can be beneficial in areas such as bookkeeping and inventory management updates.

1. Inventory and Stock Wastage

Restaurants often struggle with managing inventory and minimizing stock wastage. This is due to the changing nature of their supplies. Restaurants can use inventory management software instead of keeping manual stock registers.

2. Improper Stock Records

Inaccurate stock records can result in unexpected costs. This happens when high-demand ingredients or raw materials are not accounted for. By maintaining a well-managed inventory system, restaurants can prevent extra cost inputs.

3. Managing Multiple Branches and Stock Theft

Restaurant chains face this issue every other day. Multiple warehouse management software can solve such an issue.

4. Customer Retention

Encouraging customers to return to a restaurant can be challenging. Using integrated CRM software can attract restaurant customers. It keeps them updated on offers and new launches.

Operating a Restaurant Business

Running a restaurant is profitable as well as challenging. It involves not only large risks and tough hours but also a lot of strategiziing . In the restaurant business, an average growth of about 30-40 % can be expected yearly. One thing to remember is to constantly adapt to the new culinary trends and tastes. This will help you ensure that you stay your customers’ favourite. The competition in the restaurant business is high nowadays and you have to make sure that you make the right moves. This guide will help you with the same.

Innovative, low-investment ideas for the hidden entrepreneur in you! Explore our guide on  Business Ideas .

Frequently Asked Questions ( FAQ’s )

To start a medium to large restaurant requires an investment of 15-50 lakh rupees,  6-10 lakh rupees for small-scale ones. The amount depends on the theme, menu, and cuisine offered. It also depends on the location and rent of the space utilized. One can get investment offers from angel investors for this business.

Manage operational costs and establish strong connections with vendors. This will help to reduce expenses for ingredients and supplies at competitive prices. Focusing on building customer relationships is crucial. Create an ambiance that can bring back your customer. Work on membership strategies for regular customers. Use social media for better marketing as well.

The steps to start a private restaurant are the same as those for starting a regular restaurant. However, the budget requirement is usually higher for private establishments. Customers who dine at fancy restaurants and fine dining establishments have high expectations. It’s important to provide an ambiance and cuisine that meet this demand.

Restaurant businesses are profitable. But it needs long hours of effort and stress. Avoiding the usual challenges that restaurants face can help prevent extra expenditures. Depending on the type of menu and cuisine provided, the audience can vary. Having a regular customer flow can make the food business very profitable.

Related Reads

• 80+ Best Indian Restaurant Names Ideas For Your Business
• Inspiring Names of Fast Food Restaurants to Create a Buzz
• How to Get FSSAI License in India for Food Businesses
• From Home Cook to Entrepreneur: Best Food Business Ideas

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How to Start Restaurant Business in India ?

How to start restaurant business in india : a complete guide.

To Start restaurant business can be a challenging task, especially in a country as diverse and dynamic as India. From sourcing the right ingredients and finding the perfect location to getting the right licenses and creating an appealing menu, there are a lot of things to consider when starting a restaurant business in India.

However, with proper planning, research, and preparation, starting a restaurant business in India can also be a rewarding experience. Whether you are looking to start a small cafe or a large upscale restaurant, this guide will provide you with the essential information you need to get started on your entrepreneurial journey.

Restaurant Industry in India:

The Indian restaurant industry sector is one of the fastest growing markets in the world. According to a survey by the National Restaurant Association of India (NRAI) , the restaurant industry in India is predicted to grow at a compound annual growth rate of 9%. 5.99 lakh crore by 2022-23. Despite the constraints and problems restaurant owners have faced as a result of the COVID-19 pandemic, opening a restaurant will present new opportunities for aspiring restaurant owners.

In India, the restaurant industry is classified into various segments based on their menu offerings, prices, and target audience. Some of the popular segments include:

• Quick Service Restaurants (QSRs)
• Casual Dining Restaurants
• Fine Dining Restaurants
• Cafe and Bakeries
• Food Courts
• Home Delivery and Takeaway Services

The highest growing restaurant segments in India are casual dining, quick service restaurant, fine dining, and cafe. Apart from these the bar, pub, sports bar, lounges and clubs are also getting popular these days.

Read Also: How to open a Fertilizer Shop Business ?

Requirements to start restaurant business:

• Should have proper Space of minimum 800 sq. ft – 1000 Sq. ft
• Should have good understanding about Regional Taste & Market.
• Should have good skill of Management
• As per Menu, you have to arrange Chef, waiter, cleaner.

Note: First survey your area for taste

Choosing the Right Location:

The location of your restaurant is one of the most important factors that will determine the success of your business. Hence it is advised to visit the place at different times of the day to get an idea of ​​the area, to understand the footfall and to determine the level of competition around. Here are some important points to keep in mind while selecting the location for your restaurant:

• Getting closer to your target customers
• Accessibility and visibility of the location
• Availability of parking and public transportation
• Rent and operating costs
• Competitors in the area
• Availability of electricity, water, and other basic amenities

Conducting a Feasibility Study

First of all to start restaurant business in India, it is important to conduct a feasibility study to determine the viability of your business idea. This study will help you understand the demand for the type of restaurant you are planning to start, the competition in the market, and the cost of starting and running the business.

Some of the key factors to consider when conducting a feasibility study to start restaurant business in India include:

• Market demand for the type of restaurant you are planning to start
• Competition in the market
• Location of your restaurant
• Availability of raw materials and suppliers
• Capital requirements and funding options
• Operating costs and projected income
• Legal and regulatory requirements

Designing the Menu

Deciding the menu of your restaurant is one of the most important thing of your business. A well designed menu that offers a unique and appealing range of dishes can help you stand out from the competition and attract customers. When designing the menu for your restaurant in India, it is important to consider the following factors:

• Type of cuisine you want to offer
• Target audience and their preferences
• Availability of ingredients and raw materials
• Menu pricing
• Seasonal offerings
• Food presentation and plating

It is also important to consider the dietary restrictions and preferences of your customers, such as vegetarian, vegan, gluten-free, and others

Documents & License Required:

To start restaurant business in India, you need to obtain the following documents and licenses:

• FSSAI (Food Safety and Standards Authority of India) License: This is a mandatory license that every food business operator must obtain. It ensures that the food being served is safe and of good quality.
• Trade license: A trade license is obtained from the local Municipal Corporation or Municipality. It is a permit to start a business in a particular location.
• Health trade license: This license is obtained from the local health department and certifies that the restaurant premises meet the required health and sanitation standards.
• Fire safety certificate: This certificate is obtained from the local fire department and ensures that the restaurant has adequate fire safety arrangements in place.
• GST (Goods and Services Tax) registration: If your restaurant’s turnover is above 20 lakhs or you want to sell through online then, it is mandatory to register for GST.
• Shop and Establishment Act registration: This registration is required to comply with the state-specific labor laws and regulations.
• Udhyam Registration.
• Kitchen Insurance (If required)*

Investment Required to Start Restaurant Business:

The investment required to start restaurant business in India can vary depending on several factors such as the type of restaurant, location, menu, and operating model. On average, starting a medium-sized restaurant can cost anywhere from INR 10-50 lakhs and up. This includes all expenses such as leasing a space, purchasing equipment and raw material, marketing, and staff salaries as I’ve mentioned in the table below:

Manpower Required to Start Restaurant Business:

Space requirements to start restaurant business:.

The space requirements to start restaurant business in India vary depending on the type and size of the restaurant. Here are some of the key considerations:

• Your restaurant should be in prime location and in highly populated area.
• The size of the restaurant will depend on the number of seats, kitchen and storage requirements, and other operational needs. On average, a medium-sized restaurant may require around 800 sq. ft. – 1,000 sq. ft. of space.
• The kitchen should be equipped with all the necessary appliances, equipment, and utensils for preparing and serving food. So, minimum 150sqft required.
• The dining area should have enough space (minimum 600 sq. ft.) for customers to comfortably sit and dine, with proper seating arrangements.
• Also must have adequate storage space for food and other supplies for a restaurant’s daily operations.
• Make sure there is enough parking space for customers which is important, especially if the restaurant is located in a busy area.

Restaurant Business Revenue Calculation:

• Total Table set with 4 Chair= 8 Nos.
• Total Customer seating capacity is = 32 nos.
• In whole Day 3 times full occupancy= 3 X 32

So, Total customer with full occupancy per day = 96 Customers

Now let see, Food Ticket Size of Per Customer Food Ticket size of per customer (Example)

• Panner Masala = Rs 180 (Full Plate)
• Butter Naan (40 per Naan) 2 ps = Rs 80
• Mineral Water (1 bottle) = Rs 20

Total Customer’s food Billing = Rs 280

As we know that, Total number of customers per day = 96 Nos.

• Revenue per day from Restaurant = Per Customer food ticket size X No. of Customer  Revenue per day = 280 X 96 = 26,880 (Consider Rs 27,000)
• Revenue per day from Restaurant = Rs 27,000 (Sitting)

Now, we will talk about Revenue from Zomato & Swiggy (Online Orders)

• Online delivery food Order per day = 20 Customer of food ticket size Rs 250 Average online order per day= Rs 5000

Total Revenue from Restaurant per day= Offline + Online

Total Revenue per day from Restaurant= 27000 + 5000 = Rs 32000 /- Revenue per Month from Restaurant= Revenue per day X no. of days = 32000 x 30

Revenue per month from Restaurant = 9,60,000

Note: Birthday Parts & Events Booking is extra part of Revenue.

Monthly Expenditure:

• Salary of Staff with all benefits = 1,92,000
• Electricity Bill= 10,000
• Cylinder Gas filling = 15,000
• Space Area rent = 40,000
• Raw Material= 1,00,000
• Diesel for DG set= 10000
• Miscellaneous = 10,000

Now lets calculate the total expenditure.

Total Expenditure per Months = 3,77,000 /-

Net Profit per month from Restaurant

 = Total revenue – Monthly Expenditure   

 = 9,60,000 – 3,77,000

 = Rs 5,83,000

Read More:  Food Truck Business Plan

Read More: Grill Inn Franchise Cost In India

Steps to Start Restaurant Business in India:

Here are the some steps to start a restaurant business in India:

• Fisrt of all decide on the type of restaurant you want to open, the menu, and the target customer base.
• Analyze the local market to determine the demand the type of restaurant and identify your competitors.
• After that make a business plan for your restaurant business which include a detailed description of your restaurant concept, target market, and financial projections.
• Estimate the investment need to start restaurant business and consider options such as loans, investors, or crowdfunding(if required).
• Select a proper location that is accessible to your target customer base and has the necessary infrastructure for a restaurant.
• Obtain all necessary licenses and permits to start restaurant business, including food service and liquor licenses.
• Purchase all the equipment, hire staff, and set up the kitchen and dining area.
• Now its time to plan how you will promote your restaurant, such as through advertising, social media, or events.
• Then launch your restaurant with a grand opening ceremony and continue to monitor its performance to make adjustments as needed.

Related Video:

Conclusion:

Starting a restaurant business in India can be a challenging but if you will run you business by taking some experience, choosing the right location, and designing a attractive menu, you can increase your chances of success in the competitive restaurant industry. It is important to have a strong marketing and branding strategy, a well-trained and motivated staff, and a commitment to providing exceptional customer service. BUt remember one thing that starting a restaurant business in India requires hard work and dedication, but with the right planning, preparation, and execution, you can turn your restaurant business into a successful business.

FAQ(Frequently Asked Question):

Q. What are the steps involved to start restaurant business in India ?

Ans: To start restaurant business in India you have to take some steps like Conduct market research, create a business plan, secure funding, choose a location, obtain necessary licenses and permits, and build a strong team.

Q. What type of restaurant should I open ?

Ans: If you want to start restaurant business then the type of restaurant depends on your budget, experience and your plan. Consider the type of cuisine you want to serve, your target market, and the concept you want to convey.

Q. What are the investment to start restaurant business in India?

Ans: The cost of starting a restaurant in India depends on various factors such as the size and location of your restaurant, the type of cuisine you want to serve, and the equipment and facilities you need. On an average, it is estimated that your minimum cost to start a restaurant in India could be as low as INR 5-10 Lakhs.

Q. What are the things to be kept in mind while choosing a place for a restaurant ?

Ans: When choosing a location for a restaurant, there are many things to consider, including accessibility, visibility, parking, and the local competition. It is also important to consider the city’s population, particularly the people’s ages and economic backgrounds.

Q. How can you design an attracting and unique menu for a restaurant?

Ans: When designing a menu for your restaurant, it is important to consider your target market, the type of cuisine you want to serve, and the availability of ingredients. It is also important to consider the pricing of your menu items and to offer a variety of options for different dietary requirements.

Q. How do I create a menu for my restaurant ?

Ans: First of all do a proper research on popular dishes and ingredients, as well as the tastes and preferences of your targeted customers. Consider the cost and availability of ingredients, and the labor and time required to prepare dishes. You can also test menu items with a focus group before launching your restaurant.

Q. How can I attract customers to my restaurant?

Ans: If you start restaurant business, then it is more important to attract more and more customers to your restaurant. So there are many ways to attract customers to your restaurant, such as advertising, social media marketing and word of mouth. Along with offering promotions and discounts, it is also important to provide excellent customer service to retain more customers and encourage repeat business.

Q. How do I train my staff and ensure excellent customer service?

Ans: To ensure excellent customer service, it is important to provide your staff with comprehensive training on the menu, service standards, and customer service techniques. You should also encourage your staff to be friendly and approachable, and to always put the customer first.

Q. How do I hire and train staff for a restaurant ?

Ans: Advertise job openings, conduct interviews, and check references to find the right staff. Provide training on restaurant policies, customer service, and food preparation to ensure consistent quality and efficiency.

Q. What are the key factors to ensure the success of my restaurant business ?

Ans: Offer high-quality food and exceptional customer service, maintain consistent operations, regularly review and adjust your menu, market effectively, and continuously strive to improve your business. Building a strong brand and creating a loyal customer base are also crucial for success.

We hope you enjoyed reading this blog article on how to start Restaurant Business in India . For additional useful articles like this, keep visiting YMW Solutions.

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The contents, services, and information offered on this website are given “as is” and “as available” without any explicit or implied warranties or representations. The sole purpose of the YMW Solution blogs is to have instructive discussions about business, startups, and franchises. Only broad informational purposes are served by the content and information provided here. Before relying on the information to make any legal, financial, or business decisions, consult a specialist.

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How Profitable is the Restaurant Business in India?

Starting a restaurant business in India requires careful planning and analysis. Entrepreneurs need to assess the restaurant business plan thoroughly to understand the profit margin dynamics and determine whether the venture is profitable in the Indian context , considering factors like restaurant profit margin India . This evaluation is crucial to gauge the potential profit in restaurant business and ensure a successful venture in the competitive market.

There are multicultural, fast food , simple casual, casual dining , fine dining, fast service, family-style, barbecue, cafe, restaurant, cooking tabletop, etc., to name a few. India's food industry offers massive market and investment prospects, equipped with technologically advanced food activities. It can be hard to effectively scale up the brick and mortar restaurant market. It needs upfront capital investment, operational costs (particularly rent) and other problems. In comparison, it is incredibly difficult to keep a restaurant alive and kicking for four or five years.

The restaurant business is much more than a glamour factor and needs a serious R&D. “Without a thorough feasibility of the target market and a proper business plan in place do not venture out into the market. Research & Development is key for each concept and that's what will set you apart from others,” Chef Ritesh Tulsian, who is a Consultant Chef & Partner at HCS Global Corp.

How Easy it is to Reach the Breakeven Point?

For any business to run successfully, it is utmost important to reach break-even in a calculated and and designated timeframe. Several examples are the testimony to the fact that multiple restaurants shut their shops every year.

“Do not expect an operational break-even in the first six months of your operations irrespective of the type or scale of your restaurant. Expecting ROI in its first year of operation is not feasible. Topline won't reach magical numbers in the first quarter of the business ever. It takes time and effort,” Chef Tulsian mentioned. One can’t run a business with a quirky ambiance and innovative ideas. He/she have to earn sustainable profit to keep up with all the costs involved.

“There are tons of hidden expenditures involved no matter how much you’ve got your financial analysis on point. We expected to break even within four to six months but courtesy to the lockdown your BEP is not always accurate so if you’re one of those who’s investing their capital via loans or borrowed funds you might as well reconsider. You really need to brace yourself financially while running an f&b business,” Palak Shah, Founder, Plush Café in Mumbai.

Is Restaurant Business Profitable in India?

Owners need to understand the difference between investment and cost . Saving money on cheap infrastructure results in higher operational costs. For a new brand it roughly takes six to seven months to make profits excluding the capital costs.

“This business will only start making money once your brand value is created in the mind of the buyer. One can start making money from the 6th month of operation provided they have invested enough time and effort in keeping the operations in check and given time for brand build up. Without recognition the business won't sell at all,” Chef Tulsian commented.

Also to generate higher returns one has to keep re-engineering the business model time and again. People buy concepts and not just the product.  In today's time increasing the valuation of the company / brand is most important and that is why one needs to look at setting up their brands across multiple locations rather than concentrate on being just a local favourite. Bigger the company valuation, bigger the returns in the long run.

High return on investment also depends on the segment one is entering into. Explaining further with example, Nikita Poojari, Owner, Shiv Sagar Food and Resort Pvt Ltd. said ,”For eg, a QSR might not have high returns but they work on volume. On the other hand ,a restaurant bar will make higher profits. If the restaurant is doing well , within six months one can make money.”

Major Factors to Consider

• Real Estate has always been the biggest factor in affecting the bottom line of the restaurant business. “Sky high rentals have been the major set back for the restaurant industry. Without a back up of at least a year's working capital is another reason why restaurants fail,” Chef Tulsian stated.
• Incompetent labour and poor infrastructure also results in business growth as consistency and hospitality are key for business development. “Major factors include the quality and skill set of employees, be it cooks and chefs, delivery partners or even the packaging partners. Every little thing matters these days and is a variable in determining the success of the business,” Kewal Ahuja, Founder, SGF India Restaurant commented.
• Food consistency, payment of vendors on time, innovation, check for pilferage are other things that ensure profitability. Niketa Sharma, Founder, Masaledaar Modern India Kitchen and Bar suggests that one should do agreements with landlords keeping in mind the current times as lockdown provides flexibility for rentals. Staff to be trained as per sanitizer process and social distancing, only depending on delivery will not be enough, Sharma further added.

Business Factors Will Evolve Over Time

Kewal Ahuja has been into the restaurant business for more than a decade now. Seeing the changing scenario, he suggests that this is the right time to enter the hospitality business.

“Nowadays food from the outside is the one connection people have with their pre-covid or normal lives. There is an all-time increase in orders hence the revenue prospects are good,” he stated. In terms of staff and delivery partners, today the industry have more people available and willing to work than before. 

“Earlier a restaurateur could not expect immediate profits and sales. It took time to establish presence, name and trust in the market. It took considerable time to expand business in various locations. But today with Multinational restaurant aggregators and food delivery companies, restaurants and eating outlets have a wider platform and market to cater to. The time it takes for a new business to get orders has reduced significantly,” Ahuja added.

Dealing with the Trimmed Margin

Margins in the restaurant business have gradually trimmed down due to multiple reasons. To penetrate the market by acquiring new customers, popular third-party platforms such as Swiggy, Zomato and UberEats have embedded the concept of discounts and freebies in the mind of all customers.

The days of calling a restaurant directly and ordering from them over call are almost done with. Delivery space has been monopolized by giants such as Swiggy and Zomato. Restaurants tie-up with online food aggregators to increase visibility and quickly grow business. To their credit, they have grown the overall market cap as well but at the same time made it difficult for a traditional or legacy restaurant business to deliver on its own. Commissions absorb anywhere between 10 percent to 30 percent of the revenue (and thus margins) depending upon the delivery partner and deal.

“At the end of the day it’s a business so you need to know your numbers. Being at the right market with the right price and audience is a must” Poojari feels.

Frequently Asked Questions

1. Is the Restaurant Business Profitable in India?

Ans. The profitability of a restaurant business in India depends on various factors, and there's no guaranteed success. However, with proper planning, execution, and continuous adaptation, it can be a rewarding venture.

2. What is the Average Restaurant Profit Margin in India?

Ans:  Reported data suggests the average profit margin for restaurants in India can range from 5% to 15%. However, it's crucial to conduct your own research and consider factors specific to your restaurant concept and location.

3. Is the Food Business Profitable in India?

Ans.  The food industry in India is vast and encompasses various segments, each with its own profitability potential. While the restaurant business can be competitive, other sectors like food processing or packaged food might offer different opportunities and profit margins.

In summary, when considering the profitability of the restaurant business in India , understanding factors like restaurant profit margins and the effectiveness of a business plan is crucial. Evaluating whether the restaurant business is profitable in India involves careful analysis of the local market landscape. By focusing on profit margins and developing a strong business plan, restaurateurs can navigate the challenges and seize the opportunities within the industry. Despite the obstacles, there is significant potential for profit in the restaurant business in India for those who are well-prepared and dedicated to success.

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How To Start Small Restaurant Business in India?

Last Updated on March 31, 2022 by My Rasoi

The food industry as a small restaurant business in India is growing at a rapid rate. More and more, people are opening their own restaurants. Many of these restaurants may not be much more than a table and a chair. Others may provide a huge menu. Many of these restaurants are small operations, catering for a family or a group of friends.

Your business can soar high if you are able to manage the restaurant in a proper way. So, if you’re planning to start a small restaurant business in India, must follow the blog till the end. Thus, it will be an utmost guide to help people start a successful venture.

Estimating the Expenditure in Opening a Small Restaurant Business in India

Starting a small restaurant business in India involves deciding on a concept to work with. Before deciding on a concept, there are many things to consider. The most important one is the amount of capital available. You can estimate the amount of money that a customer is likely to spend. So, you can calculate on average at your restaurant by looking at the Average Price per Customer (APC). Go through the below pointers to know more.

• Cost of food: All the raw materials used to prepare a dish include the food cost. Food costs should be around 30% of the menu price. So, you should select the vendors for sourcing raw materials beforehand. Thus, this will ensure the smooth stock of raw materials.
• Cost of labor: The second most important restaurant outlay is labor. This cost adds up to the spending when opening a restaurant.
• Equipment for the kitchen : Purchasing quality equipment can be costly. But they always pay for themselves in the long run. Thus, investing in equipment that will help run the business is as important.
• License cost: Restaurant licenses are a chief expense of your restaurant. So, based on your establishment type, the license fee varies.
• Marketing cost: Marketing your restaurant should consume between 1-2% of your revenues. So, both offline and online marketing should combine to achieve the best results. So, your restaurant can enjoy word-of-mouth marketing as well as digital marketing.

Procedure And Documents To Start A Small Restaurant Business in India

If you want to open a restaurant business in India, you’ll need to get the proper licenses from the government. Your venture’s size determines the cost of obtaining these licenses. Obtaining the grants early is advisable, since they may take a long time to process.

The following is a list of the important licenses required to open a restaurant business in India:

• FSSAI License: A food business must be licensed by the Food Safety and Standards Authority of India (FSSAI). An FSSAI license costs approximately ₹5000 to ₹10000 depending on your turnover, etc.
• Trade License: You can get this by the municipal corporation. The cost incurred depends on the size of the restaurant. Small restaurants, but, pay between ₹5000 and ₹10,000 rupees for their license. Each license is valid for one year and people renew in March every year.
• GST Registration: A GSTIN number is required of all restaurants in order to register under GST. So, GST registration is state-specific. And, if your restaurant has outlets in different states, you’ll need a separate registration for each.
• Liquor License: A liquor license is essential if you serve liquor in your restaurant. You can get them from the local excise commissioner. And, the forms are available on their own state government websites. Without this license, you can incur a large penalty. Also, chances will be to close the business if you intend to sell liquor.
• Business Registration : Your business must be registered as a union firm or a private limited company. You will then file for annual returns, financial audits, etc. Also, you can hire a CA for managing the finance of your business. 

Focus On A Good Menu Design 

The next step to starting a restaurant is making a menu. Menu design can have a significant impact on your restaurant’s food costs.   A menu can double as a sales and marketing tool for the foodservice operation.

You should offer items that are easy to prepare and that use local or available ingredients. To reduce your food costs and waste, it is advisable to serve similar dishes. This will ease the reduction of food waste.

Moreover, the menu needs to be designed so that customers are lured to spend more. Thus, choosing a cuisine and selecting menu items according to what your audience wants is a good idea.

Associate with Online Food Aggregators 

Join your restaurant for online food services will prove gainful. You can get exposure by listing with food aggregators like Swiggy , Zomato , etc.

These platforms also run funded campaigns to increase the visibility of your outlet. To preserve the taste of food, invest in quality packaging.

Equip Your Restaurant With Latest Technology

Technology plays an overlooked yet the main role in the management of a restaurant. Installing a digital menu for your restaurant will ease managing your business. And will also bring customers. For food businesses, My Rasoi can help you build a beautiful digital menu.

The India Digital Signage Market size will grow at a CAGR of 15.1% during 2019–25. Increasing demand for digital promotions of products and services handles the market growth. In the years following COVID, dinner outings increased from 55% to 63%.

Conclusion 

Having a restaurant of your own is an excellent idea. It is, yet, a colossal task to start a restaurant from scratch and run it. We hope you found this article informative. This article will assist you in opening a business in no time. 

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Starting A Small Restaurant Business In India 2024 Guide

Embarking on the journey of opening a restaurant in India is both a challenging and profoundly rewarding venture. With its unique set of hurdles and long hours, it remains a fulfilling achievement for many. 

Whether you're dreaming of launching your very own eatery or are already navigating through the initial stages of establishing one, this comprehensive guide is tailored to illuminate the path to opening a restaurant in intricate detail.

The Restaurant Landscape in India

The restaurant landscape in India is burgeoning at an unprecedented pace, heralding a golden era for the food service industry. With an anticipated leap to a staggering USD 77.54 billion in 2024 , the sector is set to further soar to USD 125.06 billion by 2029, flourishing at an impressive Compound Annual Growth Rate (CAGR) of 10.03% over the forecast period.

Opportunities and Potential

This vibrant sector offers a plethora of opportunities for budding restaurateurs. From cafes and fast foods to fine dining and ethnic cuisines, the possibilities are as varied as the palate of its customers.

Starting a restaurant in India is not just about serving delicious food but also about understanding the intricacies of one of the country's largest and most dynamic service sectors.

Embracing the vibrant landscape of India's food and beverage (F&B) industry could be the game-changer for aspiring and current restaurateurs.

Here's a comprehensive guide designed to navigate you through the essential steps of opening a restaurant in India:

Deciding the Concept

Embarking on your restaurant venture begins with planning the concept of your establishment. This foundational step is critical as it influences numerous aspects of your business, from the ambiance to the menu. The concept is essentially the soul of your restaurant, reflecting your vision and the experience you wish to offer your patrons. 

It's important to consider your investment capacity, as this will dictate the scale and nature of your operation. Understanding the Average Price per Customer (APC) is crucial as it offers insight into the spending behavior of your target demographic.

One of the most significant barriers to realizing a restaurant dream is financial constraints. Understanding the investment landscape is crucial for any aspiring restaurateur. 

The startup cost varies significantly depending on the type of restaurant you plan to open. Here's a look at how you can navigate the financial aspects of your restaurant venture:

Self-funding

For those with sufficient savings, self-funding might be the straightforward path to bringing your restaurant to life. This approach not only gives you full control over your business but also minimizes external pressures. Alternatively, considering a partnership can be a strategic move, spreading the financial risk and pooling resources for a stronger start.

Banks and financial institutions can provide the necessary capital to kickstart your restaurant. However, be prepared for the process, which often involves presenting collateral or finding someone to guarantee the loan. It's important to have a solid business plan and financial projections to increase your chances of approval.

Venture Capital (Angel Funding)

Securing funding from venture capitalists or angel investors is quite challenging for newcomers. Investors are primarily interested in the growth potential, quality, and scalability of your restaurant concept.

They typically evaluate the performance of your initial operations before committing. This route can offer not just financial backing but valuable mentorship and networking opportunities to aid your restaurant's success.

Restaurant Costs - The Backbone of Your Business Plan

Embarking on a restaurant venture comes with its set of financial challenges, with various costs that need meticulous planning and management. Understanding and managing these costs is crucial to ensuring your restaurant's profitability and sustainability.

Key Restaurant Costs

Food Costs: This encompasses the expenses for all the raw materials required in preparing your menu items. Maintaining food costs at approximately 30-40% of the menu price is considered optimal. Efficient management of food costs without compromising on quality is vital for your restaurant's success.

Overhead Costs are the expenses not directly tied to food preparation or labor but are essential for your restaurant's operation. Key overhead costs include:

• Rent: A significant portion of your expenses, rent should be strategically considered based on location. Ideally, it should not surpass 10% of your total revenues, emphasizing the importance of choosing the right location.
• Interiors: Tailor your interiors to match the restaurant's concept and theme within your budget. An appealing interior can enhance the dining experience, attracting more customers.
• Kitchen Equipment: Investing in high-quality kitchen equipment might seem expensive initially but is crucial for efficiency and long-term cost savings.
• Licenses: Obtaining the necessary restaurant licenses is a non-negotiable expense, varying with your establishment type. Ensuring compliance with local regulations is essential for smooth operations.
• Point of Sale (POS) System: A modern POS system can streamline operations significantly. The cost varies based on its features and functionalities, chosen according to your restaurant's specific needs.
• Marketing: Allocating 1-2% of your revenues for marketing is advisable. Effective marketing strategies can increase visibility and attract more patrons to your establishment.

The selection of your restaurant's location is a pivotal decision that significantly influences its success. A well-chosen location does not only enhance visibility but also plays a crucial role in attracting your target customer base. Here's how to navigate the decision-making process for the ideal location.

Evaluating Competition and Customer Base

Before settling on a location, assess the area's existing dining options. Understanding the competition involves more than just comparing cuisines, it's about analyzing the variety of dining experiences offered, from casual to fine dining and quick-service restaurants (QSRs). This evaluation helps confirm the presence of a potential customer base accustomed to dining out, which is vital for a new restaurant's success.

Key Considerations for Choosing a Location

Visibility and Accessibility: Opt for a location that ensures your restaurant is easily noticeable and reachable to potential customers. Ground floor spaces, especially those at the forefront of a street or complex, naturally receive higher foot traffic due to better visibility and accessibility. Upper floor locations, despite potentially lower rents, might struggle to attract the same level of attention.

No Objection Certificate (NOC): Prior to opening, securing a No Objection Certificate (NOC) from neighboring businesses or residents is essential. This not only fosters good relations with your immediate community but also ensures you meet local regulations, preventing any operational hiccups down the line.

Assembling a dedicated and proficient team is critical to the success of your restaurant. The challenge of not only hiring but also retaining the right talent requires a strategic approach. Here's how to navigate the hiring process effectively, ensuring your team is equipped to provide an exceptional dining experience.

Hiring Strategies

Referrals: Leveraging the networks of your existing employees can be an effective way to find new talent. Referrals from your staff can bring in individuals who already come with a trustworthy recommendation.

Traditional Advertising: For a broader reach, consider traditional methods such as newspaper advertisements or 'We’re Hiring' posters in and around your establishment. These methods can attract local talent actively seeking employment.

Recruitment Agencies: Partnering with recruitment agencies can streamline the hiring process, especially for specialized roles within your restaurant.

Online Platforms: Utilize social media groups and professional networks on platforms like Facebook and LinkedIn. These platforms can be a rich source of potential candidates, from kitchen staff to management roles.

Types of Staff and Their Roles

Kitchen Staff: This group includes cooks, food preparers, and support staff, mainly involving unskilled labor but crucial for the smooth operation of your kitchen.

Service Staff: Comprising waiters, housekeeping, and busboys, the service staff interacts directly with customers. Skills in communication and etiquette are essential for these roles, contributing to the overall customer experience.

Management Staff: The backbone of your restaurant's operations, this category includes the manager, chef, cashier, and store manager. These roles require a combination of education and experience, ensuring efficient management of the restaurant.

The Importance of Hiring the Right Chef

The chef holds a pivotal role in defining your restaurant's culinary identity. More than just preparing meals, a chef curates the menu, sources ingredients, and leads the kitchen team in food preparation and presentation.

Training: The Foundation of Excellence

Before opening your doors to customers, invest time in training your staff thoroughly, not just in their respective job roles but also in communication and etiquette. This comprehensive preparation ensures that your team is ready to deliver service that matches the quality of your menu, enhancing customer satisfaction and loyalty.

Writing The Menu For A Restaurant Business

The creation of your restaurant's menu is much more than listing dishes, it's an opportunity to communicate your culinary identity and influence profitability. A well-thought-out menu not only showcases your offerings but also strategically impacts food costs and customer spending. 

Here's how to approach writing a menu that aligns with both your culinary vision and business goals.

Designing with Cost and Efficiency in Mind

Ingredient Selection: Opt for dishes that incorporate local or readily available ingredients. This approach not only supports local producers but also helps in keeping your supply chain short and costs down.

Ingredient Overlap: Creating a menu that utilizes similar ingredients across different dishes can significantly reduce waste and inventory costs. This strategy allows for more efficient stock management and ensures freshness through higher turnover of ingredients.

Encouraging Customer Spending

Menu Layout: The arrangement of items on the menu can subtly guide customers towards higher-priced dishes or specials. Highlighting signature dishes or using boxes and borders can draw attention to items you want to promote.

Menu Descriptions: Engaging and descriptive language can entice customers, making dishes more appealing. Descriptions should evoke taste and texture, encouraging customers to try something new or upscale their choice.

Regular Updates

Keep your menu dynamic by periodically reviewing and updating it. This practice allows you to adjust for seasonal availability of ingredients, introduce new trends, and phase out less popular items. Regular updates keep your regular customers engaged and excited for their next visit.

Starting A Restaurant Business: Supplier and Vendor Management

Building and maintaining robust relationships with suppliers and vendors are crucial for the uninterrupted operation of your restaurant. A strategic approach to supplier and vendor management not only safeguards against unexpected disruptions but also contributes to cost efficiency and quality control. Here's how to effectively manage your suppliers and vendors.

Diversifying Supplier Relationships

Multiple Vendors: Engage with two to three vendors for each category of goods you require. This strategy not only enables you to compare prices for better deals but also provides alternative sources should any issues arise with one supplier.

Emergency Preparedness: Always keep a buffer stock of at least two days' worth to mitigate the impact of unforeseen emergencies. This practice ensures that your restaurant can continue to operate smoothly without any disruptions to service.

Quality and Quantity Management

Scheduled Deliveries: Arrange for deliveries to be made in the morning, allowing ample time for thorough inspection upon receipt. This scheduling ensures that any discrepancies can be addressed promptly without affecting the day's operations.

Regular Checks: Implement daily checks for both quality and quantity at the closing time. This systematic verification helps in maintaining consistency in your offerings and prevents inventory discrepancies.

Establishing Long-term Contracts

Consistency and Reliability: Whenever possible, negotiate long-duration contracts with your key vendors. These agreements can lead to more stable pricing, reliable supply, and consistent product quality, which are essential for your restaurant's reputation and customer satisfaction.

Vendor Credentials: Before finalizing any supply contract, verify the Trade Identification Number (TIN) of the vendor. This step is crucial for ensuring that you are dealing with reputable suppliers and adhering to regulatory requirements.

How To Start A Restaurant Business: Host Soft Opening

A soft opening serves as a critical step in the journey of launching your restaurant, acting as a bridge between your preparations and the official grand opening. This controlled launch allows you to refine operations, gather valuable feedback, and adjust your offerings to better meet customer expectations. Here’s how to leverage a soft opening to set your restaurant up for long-term success.

Benefits of a Soft Opening

• Identify Demand: By hosting a soft opening, you gain insights into customer preferences and demand for your menu items, helping you adjust your offerings and inventory accordingly.
• Generate Buzz: Use the soft opening as an opportunity to create excitement around your restaurant. Word of mouth, social media posts, and previews can attract early interest and build anticipation for your official opening.
• Address Operational Issues: A soft opening allows you to identify and rectify any operational challenges, from kitchen workflow to service pacing, ensuring a smoother experience for both staff and patrons.
• Forecast Future Revenue: Initial feedback and turnout can help you predict future business volumes, aiding in more accurate financial planning and resource allocation.
• Menu Evaluation: Customer feedback during the soft opening can provide invaluable insights into which dishes are hits and which may need reevaluation or improvement.

Maximizing the Soft Opening

Collect Feedback: Encourage guests to share their thoughts on their dining experience. This feedback is gold, offering a direct line to your customers’ preferences and expectations.

Improve Service: Use the soft opening as a training ground to polish your team's service skills, from greeting guests to managing special requests, ensuring that your staff is ready to deliver top-notch service.

Expand Marketing Database: Collect contact information from attendees to grow your marketing database. This list becomes a valuable asset for sending out promotions, updates, and invitations to future events, helping to cultivate a loyal customer base.

Licensing and Legal Requirements To Start A Restaurant Business

Navigating the legal landscape is a fundamental step in setting up your restaurant in India. Adhering to the government's licensing and legal requirements is not just about compliance; it's about ensuring the safety, quality, and reliability of your services. Here's a breakdown of the essential licenses and registrations you'll need to obtain.

Key Licenses and Registrations

Food License: Issued by the Food Safety and Standards Authority of India (FSSAI), this is mandatory for every food business. Depending on the scale, you may need an FSSAI Registration, State License, or Central License.

Trade License/Eating House License: Granted by the Municipal Corporation of your state, this license authorizes your establishment's operational activities.

Liquor License: If your restaurant plans to serve alcohol, securing a liquor license is essential. This permits the sale and distribution of alcoholic beverages.

Fire Department NOC: Before opening, a No Objection Certificate from the chief fire officer is required, ensuring your restaurant meets fire safety standards.

Shops and Establishment Registration: Mandatory for establishments with more than 10 employees, this registration varies by state and ensures legal operation.

Pollution Clearance: Given the potential environmental impact, restaurants need to obtain pollution clearance certificates, especially if they emit smoke.

License for Playing Music or Videos: If your restaurant will feature pre-recorded music or visuals, you need to secure the appropriate license.

Tax Registrations: Registering for Income Tax, Goods and Service Tax (GST), and Professional Tax is compulsory for operating within the legal frameworks of India.

Labor Law Registrations: Ensures compliance with labor laws, including minimum wages and social security for your employees.

Infrastructure Licenses: Necessary if your restaurant uses kerosene, LPG, or generators, to ensure safety and compliance with environmental standards.

Parting Notes On How To Start A Restaurant Business

I hope this comprehensive guide has provided you with valuable insights and practical strategies for navigating the exciting yet challenging journey of starting a small restaurant business in India. Remember, success is a culmination of passion, perseverance, and a relentless commitment to delivering exceptional culinary experiences.

Wishing you all the best in your new restaurant endeavor, and may your hard work and dedication be rewarded with a thriving business and satisfied customers.

Kouzina is a food tech company that specializes in helping budding entrepreneurs and existing hospitality businesses start a franchise in the food industry. 

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How to start a small fast food business in India

Indians are  crazyyy  over food. We are always ever ready to explore new cuisines and flavours in town. In fact, the Indian food market is the fastest growing industry globally with a CAGR of 9%, expecting to reach 6 lac crores by the financial year 2022-23. So, why not think of how to start a small fast food business in India.

Step-by-Step Process to Start a Food Business in India

• Business Plan 

Business Registration

• License and Permits 

Set-up your Business

Hire the staff, business plan.

Planning is the most crucial part of starting a business. Therefore, you need to sit down with the team and make a good plan. 

With this in mind, the questions and factors you should discuss for fast food center business plan in India are:

• What will be the name of your business?
• Where will you start the business (location)?
• How much investment is required?
• Who are your competitors?
• What are the products they are offering?
• What are the products you will sell?
• How will the shares be distributed?
• What are the materials and utensils you will require?
• Will you do eco-friendly packaging?
• How much is the profit margin?
• What are the prices your competitors are selling the product?
• What will be your prices?
• How to get the FSSAI license?
• What will be the business structure?
• Will you register as a proprietorship, partnership or company?
• What is an  auspicious day to start business in 2022 ?

To decide on a type of business, here are some opportunities with low investment and high returns.

Types of Small Fast Food Business in India

• QSR (Quick Service Restaurant)
• Home-Bakery
• Fast Food Hotspots
• Food Franchise (WOW momos, Amul, 1mg, Kwality Walls etc)

Investment 

To start your business, you will need sufficient funds to survive in the industry.

The investment required to start a small fast food business is  Rs.5 lacs - Rs. 7 lacs (minimum) .

If you have personal savings, that is great. However, if you are looking for an investment, you can go for the following options:

• Business Bank Loan
• Angel Investors
• Crowdfunding
• Funds for Government Schemes
• Financial Bootstrapping
• Friends and Family

After planning all the above details, register your business legally. 

Registering your business with the ministry of corporate affairs is mandatory in India.

You can register your business as any of the following:

• Private Limited  Company Registration
• Sole Proprietorship
• Partnership
• One Person Company
• Limited Liability Partnership

The decision of the structure depends on the factors like ownership, future expansion scale and type of business. 

Therefore, consult an expert by filling the form  >>  to help you choose the best structure for your business.

While getting your company registered, the business service provider also applies for your business PAN Card. 

So, as soon as you receive your business PAN Card apply for a  Business Bank Account  to start the business transactions.

License and Permits

Along with registration, also apply for licenses and local permits to start your small fast food business in India.

The mandatory licenses you will need are:

• FSSAI License:  It is a mandatory license for all food businesses to start in India. It ensures that the food served by you has passed all the quality checks prescribed by the government of India. 
• GST Registration:  It is necessary if your turnover exceeds Rs.20 lacs annually (Rs.10 lacs in north-eastern states). However, if your income is below the slab, you can operate without GST.
• Shop and Establishment Act License:  You will need to apply for a Shop and Establishment Act License for the shop/cafe/store/premises where you will start your business. 
• Liquor License : If you plan to serve any alcoholic drinks in your eatery.
• NOC (No-objection Certificate) : You will need some NOC's from the neighbourhood if you play music. Also, you will need a NOC from the Fire Department after they check your premises for the safety measures.

Apart from these, if you plan to start a small restaurant, you may need  6 major licenses required for restaurant in India.

Further, after planning, registration, investments and licenses, set up your space.

You will need a minimum of  200-250 sq ft  area for starting a small fast food business in India.

To find a location, get in touch with your local brokers to get the best deals.

After that, decide on a theme for your little food store and decorate it accordingly.

Install the electric fittings, furniture and light up your place. 

Buy the kitchen utensils, serving plates and spoons. Additionally, keep disposables to pack the food for delivery.

Get all the cooking items you need for the recipes. 

After that,  design a budget-friendly menu  and have chef special dishes and combos to attract customers.

To start a small fast food business, you will need at least  2 chefs  to cook delicious food as per your menu.

Also, hire at least  2 - 3 helpers  to help with cutting, chopping, packing and taking orders. 

As it is a small business you will not require more people initially.

After following the step-by-step process mentioned above, you can now start your business.

Grand Opening

Select a good day to initiate your business and plan an opening ceremony starting with an auspicious ritual or pooja.

You can invite a few close people or more if you want to for the opening and get your store decorated.

Also, you can offer a  free dish  or a  discount  in the opening week to attract a customer base.

Market your Food Business

Market your business through the following:

• Social media channels of your city. 
• Pamphlets in the newspaper 
• Advertise through radios in the cities like Delhi, Mumbai and Bangalore. Because even now people are fond of radios in the car and stay updated through it.
• Whatsapp Broadcast
• Be available on food delivery apps like Zomato and Swiggy to get more orders.
• Offer regular discounts and combos weekly.
• Put your food stalls in events like the Art Festival, Music Festival and other cultural or fun entertainment occasions of your city.

To conclude, I hope this helped you know how to start a small fast food business in India. 

The concept of a fast-food business is to serve in as little time as possible. Therefore, make sure you provide tasty food quickly and at a low cost.

So, when you open a small fast food business, keep the  thought of providing your customers with affordable and tasty food to stay energized and fulfilled  throughout.

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How to Open a Small Restaurant in Bangalore: Investment, Cost, Business Plan, and License Requirements

Table of contents, creating a small restaurant business plan, understanding the investment required and the cost of opening, licenses required, list of things to do before opening a restaurant, kickstarting the restaurant with no experience, profit margin and potential returns.

The food industry in Bangalore, known as the Silicon Valley of India, is an ever-booming sector, making it a promising field for entrepreneurs seeking to establish their mark. Opening a small restaurant in Bangalore presents an appealing opportunity, considering the city’s diverse food culture and a population that values dining out experiences.

Starting a restaurant with no money and experience can be challenging despite the prospects. Nonetheless, with a detailed small restaurant business plan, a keen understanding of the cost of opening, awareness of the licenses needed, and careful calculation of the restaurant setup cost, you can succeed even if you’re a novice in this industry.

How to Open a Small Restaurant in Bangalore

The first step towards opening a small restaurant in Bangalore is to create a robust business plan. A well-thought-out plan will include every crucial aspect, from your restaurant’s concept, target market, competitive analysis, operational plan, marketing, and sales strategy to a detailed financial plan. This document will serve as your blueprint, guiding every decision and business direction. Furthermore, it can be beneficial in attracting investors, if necessary.

Determining the investment required for your small restaurant is a critical step in the planning process. The total cost of opening a restaurant in Bangalore can range from INR 5 lakhs to INR 2 crores, depending on location, size, concept, and target market. An average small restaurant setup cost in a decent locality for about 30-40 covers may amount to around INR 10-15 lakhs.

Your initial investment will comprise various elements. The primary expenditures include rental space or land costs, interior setup (kitchen equipment, furniture, and decor), licenses and permissions, technology (POS systems, security systems), initial inventory, and marketing for your restaurant’s launch.

If you’re wondering how to start with no money, your best bet would be to look for investors or consider a bank loan. Alternatively, you can explore the franchise model, where the parent company often supports you financially. Remember, a well-documented business plan can be instrumental in convincing investors or banks to fund your restaurant venture.

Starting a restaurant in Bangalore involves securing several licenses, which form a significant part of your initial investment. The key licenses needed include a Trade License from the local municipality, a Food Safety and Standard Authority of India (FSSAI) License, GST Registration, a Liquor License (if you plan to serve alcohol), a Fire Safety Certificate, and a license from the Pollution Control Board. The cost of these licenses varies but expect to budget around INR 1-2 lakhs for them.

Once you have a well-drafted business plan, the necessary investment, and the required licenses, there’s a crucial list of things to do before opening a restaurant. First, finalize a location that aligns with your target market, fits your budget, and has good footfall. Then, design a layout for your restaurant that optimizes the dining area and kitchen space.

In case you missed it: How to Open a Small Restaurant in Hyderabad: Investment, Cost, Business Plan, and License Requirements

After that, recruit a reliable team to help bring your restaurant vision to life. It includes hiring chefs, waitstaff, and a management team. You should also devise a training plan to consistently ensure your team delivers quality service. Next, curate an attractive menu based on market research, keeping in mind the tastes and preferences of your target audience. Your menu should also reflect your restaurant’s overall concept and theme.

Invest in a good POS system to streamline operations and make the process smoother for the staff and the customers. Marketing your restaurant before its launch is crucial for anticipating and attracting initial customers. Lastly, prepare a reopening checklist to ensure you have all aspects covered – from kitchen operations, dining setup, and staff training to the final look and feel of the restaurant.

Venturing into the restaurant business with no experience can seem daunting. However, starting and running a successful restaurant is possible even if you are new to this field. One of the key factors is the willingness to learn and adapt. Attend workshops, read books, and follow successful restaurateurs to gather industry insights. Having a mentor in the industry can also be greatly beneficial.

Collaborating with an experienced partner or hiring experienced staff, especially for key roles like the chef or restaurant manager, can be a game-changer. They can help you navigate the operational challenges of the restaurant business more smoothly. Meanwhile, you can focus on other areas such as marketing, customer service, or finances.

It’s important to remember that running a restaurant requires involvement in multiple roles, from being an HR manager and marketing expert to a customer service rep. Even with no initial experience, wearing these multiple hats will eventually give you a holistic understanding of the business.

The profit margin in the restaurant industry varies greatly, but a well-run small restaurant can typically expect a margin between 10% to 15%. Several factors can influence this, such as the restaurant’s location, concept, menu pricing, operating costs, and efficiency of operations. A successful restaurant in a good location could recover its initial investment within 18 months to 2 years.

In case you missed it: How to Open a Restaurant Business in Alabama: Business Plan, Setup Cost, Profit, and License/Permit

However, remember that these are approximate figures, and actual returns can vary based on market dynamics, competition, and the overall success of your restaurant concept. Profitability in the restaurant business requires a balance of competitive pricing, cost-effective operations, excellent service, and effective marketing.

Starting a small restaurant in Bangalore is a rewarding yet challenging entrepreneurial endeavor. From drafting a comprehensive business plan to understanding the restaurant setup cost, acquiring necessary licenses, and dealing with the day-to-day operational challenges, every step is a learning experience.

While the idea of starting with no money and no experience may sound overwhelming, with the right approach, dedication, and passion for the food industry, you can make your mark in the vibrant food scene of Bangalore. Your dream of owning a restaurant, creating an inviting dining space, and serving delightful culinary experiences could be the next big hit in the city’s dynamic food landscape.

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Restaurant Business Plan Template

Written by Dave Lavinsky

Restaurant Business Plan

You’ve come to the right place to create your restaurant business plan.

We have helped over 100,000 entrepreneurs and business owners with how to write a restaurant business plan to help them start or grow their restaurants.

Below is a restaurant business plan template to help you create each section of your business plan.

Restaurant Business Plan Example

Executive summary, business overview.

Bluehorn Restaurant & Steakhouse is a new restaurant and steakhouse located in Oklahoma City, Oklahoma. The menu of Bluehorn Restaurant & Steakhouse will include bistro-type dishes that are authentically created and crafted by acclaimed Chef Peter Logan. It will be located in the trendy part of town, known as the Plaza District. The restaurant will be surrounded by classy art galleries, live theater, high-end restaurants and bars, and expensive shopping.

Owned by emerging restaurant operators Chef Peter Logan and Anastasia Gillette, Bluehorn Restaurant & Steakhouse’s mission is to become Oklahoma City’s best, new restaurant for patrons to celebrate their next big event, have a nice date night, or gather with friends or family for a fun evening while dining over finely crafted entrees, desserts, and cocktails.

Products Served

The following are the menu items to be offered by Bluehorn Restaurant & Steakhouse:

• Soups & Salads
• Gourmet sides
• Wine, Beer & Spirits

Customer Focus

Bluehorn Restaurant & Steakhouse will target adult men and women between the ages of 21 – 65 with disposable income in Oklahoma City, Oklahoma. Within this demographic are millennials, young professionals, newlyweds, young families, more established families, and retirees. Because of the pricing structure of the menu, the patrons will likely be upper middle class to the wealthy population of Oklahoma City.

Management Team

Bluehorn Restaurant & Steakhouse is owned and operated by fellow Oklahoma City natives and culinary enthusiasts, Chef Peter Logan and Anastasia Gillette. Both come with a unique skill set and complement each other perfectly. They formerly worked together at another OKC fine dining establishment and made a great team for serving guests delectable food and wine while ensuring the highest level of customer service.

Chef Peter will manage the kitchen operations of Bluehorn Restaurant & Steakhouse, while Anastasia will oversee front of the house operations, maintain and ensure customer service, and manage all reservations.

Financial Highlights

Bluehorn Restaurant & Steakhouse is seeking $300,000 in debt financing to open its start-up restaurant. The funding will be dedicated for the build-out and design of the restaurant, kitchen, bar and lounge, as well as cooking supplies and equipment, working capital, three months worth of payroll expenses and opening inventory. The breakout of the funding is below:

• Restaurant Build-Out and Design – $100,000
• Kitchen supplies and equipment – $100,000
• Opening inventory – $25,000
• Working capital (to include 3 months of overhead expenses) – $25,000
• Marketing (advertising agency) – $25,000
• Accounting firm (3 months worth and establishment/permitting of business) – $25,000

Company Overview

Bluehorn Restaurant & Steakhouse is a new restaurant and steakhouse located in Oklahoma City, Oklahoma. Bluehorn Restaurant & Steakhouse will serve a wide variety of dishes and beverages and will cater to the upper middle class to wealthier population of Oklahoma City. The menu of Bluehorn Restaurant & Steakhouse will include bistro-type dishes that are authentically created and crafted by acclaimed Chef Peter Logan. It will be located in the trendy part of town, known as the Plaza District. The Plaza District is one of Oklahoma’s trendy neighborhoods and is considered the “it” area for newlyweds, millennials, professionals, and young singles. The restaurant will be surrounded by classy art galleries, live theater, high-end restaurants and bars, and expensive shopping.

Owned by emerging restaurant operators Chef Peter Logan and Anastasia Gillette, the restaurant’s mission statement is to become the best new steak restaurant in OKC. The following are the types of menu items Bluehorn Restaurant & Steakhouse will serve- shareables, steaks, soups, gourmet sides and salads.

Bluehorn Restaurant & Steakhouse History

Bluehorn Restaurant & Steakhouse is owned by two Oklahoma City natives, Chef Peter Logan and Anastasia Gillette. They have both worked around the country in fine dining establishments and have a combined twenty years in the restaurant industry. Upon working alongside each other at another fine dining establishment in Oklahoma City, the two of them became good friends and decided to venture into owning their own restaurant.

Chef Peter is the kitchen guru and critically acclaimed chef, while Anastasia manages the front of the house and is a certified Sommelier. Together, with both of their expertise and knowledge, Bluehorn Restaurant & Steakhouse is destined to become Oklahoma City’s next big restaurant.

Industry Analysis

The Restaurant industry is expected to grow to over $220 billion in the next five years.

Consumer spending is projected to grow. The Consumer Confidence Index, a leading indicator of spending patterns, is expected to also grow strongly, which will boost restaurant industry growth over the next five years. The growth in consumer confidence also suggests that more consumers may opt to segment their disposable income to eating outside the home.

Additionally, an increase in the number of households earning more than $100,000 annually further contributes to the industry growth, supporting industry operators that offer more niche, higher-end products.  This group is expected to continue to grow in size over the next five years.

The urban population represents a large market for the industry. Specifically, time-strapped individuals living in urban areas will likely frequent industry establishments to save time on cooking. The urban population is expected to increase, representing a potential opportunity for the industry.

Customer Analysis

Demographic profile of target market, customer segmentation.

Bluehorn Restaurant & Steakhouse will primarily target the following customer profile:

• Upper middle class to wealthier population
• Millennials
• Young professionals
• Households with an average income of at least $75k
• Foodies and culture enthusiasts

Competitive Analysis

Direct and indirect competitors.

Bluehorn Restaurant & Steakhouse will be competing with other restaurants in Oklahoma City. A profile of each competitor is below. The Press Located in the trendy area known as the Plaza District, The Press has reimagined our favorite foods of the surrounding regions through the lens of home.

The menu consists of appetizers, soups, burgers and sandwiches, bowls, main dishes, sides, desserts, and a large selection of alcoholic beverages. The Press serves craft beer, domestic beer, wine spritzers, house cocktails, wine, and mimosas. They also offer brunch. The menu of The Press is affordable with the most expensive dish being $16. The wine menu is also not pretentious as the wine is sold either by the glass or bottle, with the most expensive bottle being $52 for the Gruet Sparkling Brut Rose. Oak & Ore Oak & Ore is a craft beer and restaurant in OKC’s Plaza District. They have a 36-tap beer selection and offer vegetarian, vegan, and gluten free dining options. Oak & Ore offers a rotating, 36-tap selection of their favorite brews from Oklahoma and around the world. Each beer is thoughtfully paired with a craft beer-inspired dining experience.

The food menu of Oak & Ore offers starters, salads, wings, fried chicken, sandwiches, tacos, banh mi, and sides. They also have a selection of kids dishes so the whole family can enjoy comfort food while sampling one of their delectable beers.

The Mule OKC The Mule is a casual, hip restaurant offering a large beer and cocktail menu plus sandwiches and more. Located in the constantly growing and buzzing hub that is the Plaza District, The Mule takes the timeless favorite and contorts it into a whole menu of wild offerings.

There is also a fantastic assortment of soups offered and The Mule shakes up a seasonal list of cocktails designed by their bar staff. During the winter months, patrons can stave off the cold with their versions of hot toddies and buttered rum. For the beer drinkers, they always have a reliable line-up of fresh cold brews on draft, as well as a wide selection of can.

Competitive Advantage

Bluehorn Restaurant & Steakhouse offers several advantages over its competition. Those advantages are:

• Gourmet dishes elegantly prepared to the finest standard.
• Selection of steaks sourced from local Oklahoma farms.
• An exclusive and unique wine menu that includes a wine selection of all price points.
• Highly sought after location: Bluehorn Restaurant & Steakhouse will be located in the trendy and attractive neighborhood known as The Plaza District.
• Trendy, welcoming, and energetic ambiance that will be perfect for a night out or a celebration.

Marketing Plan

Promotions strategy.

The marketing strategy for Bluehorn Restaurant & Steakhouse is as follows: Location Bluehorn Restaurant & Steakhouse’s location is a promotions strategy in itself. The Plaza District is a destination spot for locals, tourists, and anyone looking for the trendiest food fare in Oklahoma City. The Plaza District is home to OKC’s most popular bars and restaurants, art galleries, theaters, and boutique shopping. The millennials, young professionals, and foodies will frequent Bluehorn Restaurant & Steakhouse for the location itself.

Social Media Bluehorn Restaurant & Steakhouse will use social media to cater to the millennials and Oklahoma City residents. Chef Peter and Anastasia plan to hire an advertising agency to take professional photographs of the menu items and location to create appealing posts to reach a greater audience. The posts will include pictures of the menu items, as well as upcoming featured options. SEO Website Marketing Bluehorn Restaurant & Steakhouse plans to invest funds into maintaining a strong SEO presence on search engines like Google and Bing. When a person types in “local fine dining restaurant” or “Oklahoma City restaurant”, Bluehorn Restaurant & Steakhouse will appear in the top three choices. The website will include the full menu, location, hours, and lots of pictures of the food, drinks, and steaks. Third Party Delivery Sites Bluehorn Restaurant & Steakhouse will maintain a presence on sites like GrubHub, Uber Eats, Doordash, and Postmates so that people looking for local food to be delivered will see Bluehorn Restaurant & Steakhouse listed near the top.

Operations Plan

Operation functions:.

The company will hire the following:

• 4 sous chefs
• 2 bartenders
• 2 hostesses
• The company will hire an advertising agency and an accounting firm

Milestones:

Bluehorn Restaurant & Steakhouse aims to open in the next 6 months. The following are the milestones needed in order to obtain this goal.

7/1/202X – Execute lease for prime location in the Plaza District.

7/2/202X – Begin construction of restaurant build-out.

7/10/202X – Finalize menu.

7/17/202X – Hire advertising company to begin developing marketing efforts.

8/15/202X – Start of marketing campaign

8/22/202X – Final walk-thru of completed restaurant build-out.

8/25/202X – Hire team of sous chefs, servers, and bussers.

9/1/202X – Decoration and set up of restaurant.

9/15/202X – Grand Opening of Bluehorn Restaurant & Steakhouse

Bluehorn Restaurant & Steakhouse will be owned and operated by Chef Peter Logan and Anastasia Gillette. Each will have a 50% ownership stake in the restaurant.

Chef Peter Logan, Co-Owner

Chef Peter Logan is an Oklahoma City native and has been in the restaurant industry for over ten years. He was trained in a prestigious Le Cordon Bleu Culinary Academy in San Francisco and has worked in some of the nation’s most prestigious fine dining restaurants. His tenure has took him from the west coast to the east coast, and now he’s back doing what he loves in his hometown of Oklahoma City.

Chef Peter will manage the kitchen operations of Bluehorn Restaurant & Steakhouse. He will train and oversee the sous chefs, manage inventory, place food inventory orders, deal with the local food vendors, and ensure the highest customer satisfaction with the food.

Anastasia Gillette, Co-Owner

Anastasia Gillette was born and raised in Oklahoma City and has garnered over ten years in the restaurant industry as well. While in college, Anastasia worked as a hostess at one of the area’s most prestigious restaurant establishments. While there, she was eventually promoted to Front of the House Manager where she oversaw the hostesses, servers, bussers, bartenders, and reservations. Her passion always led to the beverage portion of the restaurant so she obtained her Sommelier certificate in 2019. With her wine education, Anastasia is able to cultivate an interesting and elegant wine selection for the restaurant.

Anastasia will oversee front of the house operations, maintain and ensure customer service, and manage all reservations. She will also be in charge of the bar and wine ordering, training of front of the house staff, and will manage the restaurant’s social media accounts once they are set up.

Financial Plan

Key revenue & costs.

The revenue drivers for Bluehorn Restaurant & Steakhouse will come from the food and drink menu items being offered daily.

The cost drivers will be the ingredients and products needed to make the menu items as well as the cooking materials. A significant cost driver is the fine dining equipment, serving dishes, and beer and wine glasses. Other cost drivers will be the overhead expenses of payroll for the employees, accounting firm, and cost of the advertising agency.

Funding Requirements and Use of Funds

Bluehorn Restaurant & Steakhouse is seeking $300,000 in debt financing to open its start-up restaurant. The breakout of the funding is below:

Financial Projections

Income Statement

  Balance Sheet

  Cash Flow Statement

Restaurant Business Plan FAQs

What is a restaurant business plan.

A restaurant business plan is a plan to start and/or grow your restaurant business. Among other things, it outlines your business concept, identifies your target customers, presents your marketing plan and details your financial projections.

You can  easily complete your restaurant business plan using our Restaurant Business Plan Template here .

What Are the Main Types of Restaurants?

There are many types of restaurant businesses. Restaurants can range in type from fast food, fast casual, moderate casual, fine dining, and bar and restaurant types. Restaurants also come in a variety of different ethnic or themed categories, such as Mexican restaurants, Asian restaurants, American, etc.  Some restaurants also go mobile and have food trucks.

How Do You Get Funding for Your Restaurant Business Plan?

Restaurant businesses are most likely to receive funding from banks. Typically you will find a local bank and present your business plan to them. Another option for a restaurant business is to obtain a small business loan. SBA loans are a popular option as they offer longer loan terms with lower interest rates.

What are the Steps To Start a Restaurant Business?

1. Develop A Restaurant Business Plan - The first step in starting a business is to create a detailed restaurant business plan that outlines all aspects of the venture. This should include potential market size and target customers, the services or products you will offer, pricing strategies and a detailed financial forecast.  

2. Choose Your Legal Structure - It's important to select an appropriate legal entity for your restaurant business. This could be a limited liability company (LLC), corporation, partnership, or sole proprietorship. Each type has its own benefits and drawbacks so it’s important to do research and choose wisely so that your restaurant business is in compliance with local laws.

3. Register Your Restaurant Business - Once you have chosen a legal structure, the next step is to register your restaurant business with the government or state where you’re operating from. This includes obtaining licenses and permits as required by federal, state, and local laws. 

4. Identify Financing Options - It’s likely that you’ll need some capital to start your restaurant business, so take some time to identify what financing options are available such as bank loans, investor funding, grants, or crowdfunding platforms. 

5. Choose a Location - Whether you plan on operating out of a physical location or not, you should always have an idea of where you’ll be based should it become necessary in the future as well as what kind of space would be suitable for your operations. 

6. Hire Employees - There are several ways to find qualified employees including job boards like LinkedIn or Indeed as well as hiring agencies if needed – depending on what type of employees you need it might also be more effective to reach out directly through networking events. 

7. Acquire Necessary Restaurant Equipment & Supplies - In order to start your restaurant business, you'll need to purchase all of the necessary equipment and supplies to run a successful operation. 

8. Market & Promote Your Business - Once you have all the necessary pieces in place, it’s time to start promoting and marketing your restaurant business. This includes creating a website, utilizing social media platforms like Facebook or Twitter, and having an effective Search Engine Optimization (SEO) strategy. You should also consider traditional marketing techniques such as radio or print advertising. 

Learn more about how to start a successful restaurant business:

• How to Start a Restaurant Business

Where Can I Get a Restaurant Business Plan PDF?

You can download our free restaurant business plan template PDF here . This is a sample restaurant business plan template you can use in PDF format.

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Indian Restaurant Business Plan

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Indian Restaurant Business Plan [Sample Template]

By: Author Tony Martins Ajaero

Home » Business Plans » Food Sector » Restaurant & Bar

Are you about starting an Indian restaurant? If YES, here is a complete sample Indian restaurant business plan template & feasibility report you can use for FREE .

Okay, so we have considered all the requirements for starting an Indian restaurant. We also took it further by analyzing and drafting a sample Indian restaurant marketing plan template backed up by actionable guerrilla marketing ideas for Indian restaurants. So let’s proceed to the business planning section.

The united states of America is one of the few countries of the world that is home to people of different continents, and Indians can boast of a growing population in the States. If you are an Indian living in the United States and you are looking towards leveraging on the vast population of Indian migrants in the US to generate revenue, then one of your best options is to start an Indian restaurant.

The truth is that if you can successfully start an Indian restaurant in the United States, your clients aren’t going to be just Indians but every other person within your location who loves exploring delicacies from different parts of the world.

You already know by now that businesses need business plans to project and tag along. Writing a business plan to many might be difficult because of the many technicalities involved. It is for this reason that business plan templates can be drawn from the internet and business books so that you can have an idea of what it is like to draw up a business plan for yourself.

That is not all, you will need to make sure that you have reasons why you want to be in that line of business. This could be categorized as the vision and mission of your business as you will see in this sample business plan template as you forge ahead.

Other areas that might require some math could be worked out along the road as you get acquainted with the sample business plan. You too can now write your own business plan by fixing in the appropriate details of your business after you have gone through the sample Indian restaurant business plan below.

A Sample Indian Restaurant Business Plan Template

1. industry overview.

Indian restaurants are restaurants that mainly prepare and sell Indian-style food. The Indian Restaurant industry accommodates single-location, chain and franchised enterprises, as well as full-service and fast-food operators whose major delicacies are Indian inspired.

Players in this industry also sell alcoholic and other beverages as a means of generating more revenue and maximizing profits. A close watch of the Indian Restaurants industry shows that the industry has benefited greatly from an increased acceptance of Indian cuisine in the mainstream American food industry.

In addition, an increasing immigrant population from Indian coupled with domestic adaptations of Indian food, such as dosa, bonda, currivepillai sadam and chicken kabab, has also aided the rise of the Indian Restaurants industry over the last five years.

As a result of these major trends, industry revenue is expected to continue growing going forward. The Restaurants industry that Indian restaurant is a part of is a thriving sector of the economy of the United States.

Statistics has it that in the United States of America, the restaurant industry generates over $38 billion annually from more than 34,061 registered and licensed restaurants and franchises scattered all around the country. The industry is responsible for the employment of over 877,619 people.

Experts project the restaurants industry to grow at a 2.9 percent annual rate within the next five years. The restaurants industry is a profitable industry in the United States and it is open for any aspiring entrepreneur to come in and establish his or her business.

You can choose to start on a small scale in a street corner like the average mom and pop business or you can choose to start on a large scale with several outlets in key cities. Plus, you don’t need to be an Indian to successfully launch and run this business.

2. Executive Summary

Ravi Rajamma® Indian Restaurant, LLC is a registered Indian restaurant that will be located in a city with a huge Indian population – San Francisco Bay Area – California but hopes to spread out to key cities in the United States within the first 5 years of operation.

We are at the final stages of leasing a facility along a major road that is big enough to fit into the design of the kind of standard Indian restaurant that we intend launching and the facility is located directly opposite the largest residential estate in San Francisco – California.

Ravi Rajamma® Indian Restaurant, LLC will be involved in the sale of a wide variety of Indian inspired delicacies, juice, sodas et al.

We are aware that there are several Indian restaurants and other standard restaurants that serve Indian delicacies scattered all around San Francisco – California, which is why we spent time and resources to conduct our feasibility studies and market survey so as to offer much more than our competitors will be offering.

We have delivery service options for our customers, and our outlet is well secured with the various payment options. Much more than retailing and serving Indian delicacies and drinks, our customer care will be second to none in the whole of San Francisco – California.

We know that our customers are the reason why we are in business which is why we will go the extra mile to get them satisfied when they visit our restaurant. Ravi Rajamma® Indian Restaurant, LLC will ensure that all our customers are given first class treatment whenever they visit our restaurant.

We have a CRM software that will enable us manage a one on one relationship with our customers no matter how large our customer base may grow to. We will ensure that we get our customers involved when making some business decisions that directly affect them.

We are aware of the trend in the restaurant industry especially in the United States and we are not only going to operate a system where our customers would have to come to our restaurant to make purchase or whatever they want, but we will also operate an online restaurant and our customers can place orders for our meals online and they will get it delivered to their houses or any location they want.

Ravi Rajamma® Indian Restaurant, LLC is a family business that is owned by Ravi Rajamma and his immediate family members.

Ravi Rajamma is an Indian celebrity chef and he has a B.Sc. in Food Science and a Diploma in Business Administration, with over 15 years’ experience in the restaurant and fast food industry, working for some of the leading brands in india and the United States.

Although the business is launching out with just one outlet in San Francisco – California, but there is a plan to open other outlets all around California and in other key cities in the United States of America.

3. Our Products and Services

Ravi Rajamma® Indian Restaurant, LLC is a company that looks forward to deliver excellent services and of course Indian delicacies. We want to be known as the Indian restaurant that truly cares for her customers.

Our intention of starting our Indian restaurant is to favorably compete in the industry and of course to make profits, and we will do all that is permitted by the law in the United States of America to achieve our aim and business goal. Our product and service offerings are listed below;

• Operating quick-service restaurants
• Operating fast food services
• Operating drive-thru and take-out facilities
• Sale of Indian delicacies such as; dosa, bonda, currivepillai sadam and chicken kabab et al.
• Sale of Sandwiches
• Sale of beverages such as juice and sodas

4. Our Mission and Vision Statement

• Our vision is to become the leading Indian restaurant in San Francisco – California and to open chains of Indian restaurants all across major cities in the United States of America.
• Our mission is to establish chains of Indian restaurants that will make available a wide variety of Indian inspired delicacies and soft drinks at affordable prices to the residents of San Francisco – California and other cities in the United States of America where we intend opening our chains of restaurants.

Our Business Structure

Our intention of starting an Indian restaurant business is to build a standard business in San Francisco – California. Although our Indian restaurant might not be as big as some of the leading brands in the industry, but will ensure that we put the right structure in place that will support the kind of growth that we have in mind while setting up the business.

We will ensure that we hire people that are qualified, honest, customer centric and are ready to work to help us build a prosperous business that will benefit all the stakeholders.

As a matter of fact, profit-sharing arrangement will be made available to all our senior management staff and it will be based on their performance for a period of ten years or more. In view of that, we have decided to hire qualified and competent hands to occupy the following positions;

• Chief Executive Officer (Owner)
• Restaurant Manager
• Human Resources and Admin Manager
• Chef/Kitchen Workers

Sales and Marketing Manager

Information Technologist

• Accountants/Cashiers

Waiters/Waitress

• Van Drivers

5. Job Roles and Responsibilities

Chief Executive Officer – CEO (Chief Chef):

• Increases management’s effectiveness by recruiting, selecting, orienting, training, coaching, counseling, and disciplining managers; communicating values, strategies, and objectives; assigning accountabilities; planning, monitoring, and appraising job results; developing incentives; developing a climate for offering information and opinions
• Responsible for fixing prices and signing business deals
• Responsible for providing direction for the business
• Creates, communicates, and implements the organization’s vision, mission, and overall direction – i.e. leading the development and implementation of the overall organization’s strategy
• Responsible for signing checks and documents on behalf of the company
• Evaluates the success of the organization

Admin and HR Manager

• Responsible for overseeing the smooth running of HR and administrative tasks for the organization
• Maintains office supplies by checking stocks; placing and expediting orders; evaluating new products.
• Ensures operation of equipment by completing preventive maintenance requirements; calling for repairs.
• Defines job positions for recruitment and managing interviewing process
• Carries out induction for new team members
• Responsible for training, evaluation and assessment of employees
• Responsible for arranging travel, meetings and appointments
• Oversees the smooth running of the daily office activities.

Restaurant Manager:

• Responsible for managing the daily activities in the restaurant (kitchen inclusive)
• Ensures that the restaurant facility is in tip top shape and conducive enough to welcome customers
• Interfaces with third – party providers (vendors)
• Attends to Customers complaints and enquiries
• Handles any other duty as assigned by the CEO

Chef/Kitchen Staff

• In charge of preparing Indian inspired delicacies and other delicacies as supervised by the kitchen supervisor
• Responsible for carrying out all casual or unskilled jobs in the restaurant
• Responsible for packaging meals meant for delivery
• Handles any other duty as assigned by the restaurant manager or kitchen supervisor
• Manages external research and coordinate all the internal sources of information to retain the organizations’ best customers and attract new ones
• Models demographic information and analyze the volumes of transactional data generated by customer purchases
• Identify, prioritize, and reach out to new partners, and business opportunities et al
• Identifies development opportunities; follows up on development leads and contacts; participates in the structuring and financing of projects; assures the completion of development projects.
• Responsible for supervising implementation, advocate for the customer’s needs, and communicate with clients
• Develops, executes and evaluates new plans for expanding sales
• Documents all customer contact and information
• Represents the company in strategic meetings
• Helps to increase sales and growth for the company
• Manages the organization’s website
• Handles ecommerce aspect of the business
• Responsible for installing and maintenance of computer software and hardware for the organization
• Manages logistics and supply chain software, Web servers, e-commerce software and POS (point of sale) systems
• Manages the organization’s CCTV
• Handles any other technological and IT related duties.

Accountant/Cashier:

• Responsible for preparing financial reports, budgets, and financial statements for the organization
• Provides managements with financial analyses, development budgets, and accounting reports; analyzes financial feasibility for the most complex proposed projects; conducts market research to forecast trends and business conditions.
• Responsible for financial forecasting and risks analysis.
• Performs cash management, general ledger accounting, and financial reporting
• Responsible for developing and managing financial systems and policies
• Responsible for administering payrolls
• Ensures compliance with taxation legislation
• Handles all financial transactions for the organization
• Serves as internal auditor for the organization
• Promptly attends to customers in a friendly and professional manner
• Ensures that unoccupied tables are always set and ready for customers
• Pulls out chairs for customers as they arrive
• Handles any other duty as assigned by the restaurant manager

Van Drivers 

• Delivers customer’s orders promptly
• Delivers correspondence for the restaurant
• Runs errand for the organization
• Any other duty as assigned by the manager
• Responsible for cleaning the restaurant facility at all times
• Ensures that toiletries and supplies don’t run out of stock
• Handles any other duty as assigned by the restaurant manager.

6. SWOT Analysis

Our intention of starting just one outlet of our restaurant in San Francisco is to test run the business for a period of 3 to 5 years to know if we will invest more money, expand the business and then open other outlets all over California and other cities in the United States of America.

We are aware that there are several Indian restaurants all over San Francisco and even in the same location where we intend locating ours, which is why we are following the due process of establishing a business.

We know that if a proper SWOT analysis is conducted for our business, we will be able to position our business to maximize our strength, leverage on the opportunities that will be available to us, mitigate our risks and be equipped to confront our threats.

Ravi Rajamma® Indian Restaurant, LLC employed the services of an expert HR and Business Analyst with bias in fast food line of business to help us conduct a thorough SWOT analysis and to help us create a Business model that will help us achieve our business goals and objectives. This is the summary of the SWOT analysis that was conducted for Ravi Rajamma® Indian Restaurant, LLC;

Our location, the business model we will be operating, varieties of payment options, wide varieties of Indian inspired delicacies and our excellent customer service culture will definitely count as a strong strength for Ravi Rajamma® Indian Restaurant, LLC.

A major weakness that may count against us is the fact that we are a new Indian restaurant and we don’t have the financial capacity to compete with multi – million dollar chains of Indian restaurants.

• Opportunities:

The fact that we are going to be operating our Indian restaurant in one of the busiest streets in San Francisco with a robust Indian community provides us with unlimited opportunities to sell our Indian inspired delicacies to a large number of people.

We have been able to conduct thorough feasibility studies and market survey and we know what our potential clients will be looking for when they visit our restaurant; we are well positioned to take on the opportunities that will come our way.

Just like any other business, one of the major threats that we are likely going to face is economic downturn. It is a fact that economic downturn affects purchasing/spending power. Another threat that may likely confront us is the arrival of a new Indian restaurant or a standard conventional restaurant that serves Indian inspired delicacies in same location where ours is located.

7. MARKET ANALYSIS

• Market Trends

In this era when the online community is growing rapidly, you would do your business a whole lot of favor if you create your own online presence. One of the easiest ways to get people to see you as an expert in your line of business is to blog constantly about Indian inspired foods.

You may also want to leverage on social media platforms like Instagram, Facebook, and Twitter, and others to publicize your Indian restaurant. You can as well go ahead to open an online portal where people can place order from your restaurant.

You must ensure that your delivery system is efficient if you intend to do well with your online restaurant business. Also, players in the restaurant industry have created new menu options that capitalize on the trend of increasing awareness of the health risks associated with high – fat diets.

The industry has also thrived by developing products at price points attractive enough to weather the slow recovery, resulting in strong revenue growth. These trends are expected to continue and contribute to revenue growth going forward.

Lastly, a close watch of the trend in the Indian Restaurants industry shows that the industry has benefited greatly from an increased acceptance of Indian cuisine in the mainstream American food industry.

In addition, an increasing immigrant population from India coupled with domestic adaptations of Indian inspired food, such as Chicken Kabab, has also aided the rise of the Indian Restaurants industry over the last five years. As a result of these major trends, industry revenue is expected to continue growing going forward.

8. Our Target Market

One thing about Indian inspired delicacies is that it is not just for India and other Asian people; it is for everyone in the United States and tourists as well. As a matter of fact, most Indian restaurants now have menu designed specifically for vegetarians and others depending on their food preferences.

In view of that, we have positioned our Indian restaurant to service residents of San Francisco and every other location where our chains of Indian restaurant outlets will be located in key cities all over the United States of America. We have conducted our market research and we have ideas of what our target market would be expecting from us. We are in business to retail our products to the following groups of people;

• Indian migrants
• Event Planners
• Vegetarians
• Corporate Organizations
• Corporate Executives
• Business People
• Sports Men and Women

Our Competitive Advantage

A close study of the restaurant industry of which Indian restaurant is a part of, reveals that the market has become much more intensely competitive over the last decade.

As a matter of fact, you have to be highly creative, customer centric and proactive if you must survive in this industry. We are aware of the competition and we are prepared to compete favorably with other Indian restaurants in San Francisco – California.

Ravi Rajamma® Indian Restaurant, LLC is launching a standard Indian restaurant that will indeed become the preferred choice of residents of San Francisco – California and other cities where we intend opening our chains of Indian restaurant outlets.

Our restaurant facility is located in a corner piece property on a busy road directly opposite one of the largest residential estates in San Francisco Bay Area – California with a robust Spanish community. We have enough parking spaces that can accommodate over 20 cars per time.

We will ensure that we have wide varieties of Indian inspired delicacies in our restaurant at all times. It will be difficult for customers to visit our restaurant and not make a purchase. One of our business goals is to make Ravi Rajamma® Indian Restaurant, LLC a one stop Indian restaurant.

Our excellent customer service culture, online options, various payment options and highly secured facility will serve as a competitive advantage for us.

Lastly, our employees will be well taken care of, and their welfare package will be among the best within our category in the restaurant industry, meaning that they will be more than willing to build the business with us and help deliver our set goals and achieve all our aims and objectives.

9. SALES AND MARKETING STRATEGY

• Sources of Income

Ravi Rajamma® Indian Restaurant, LLC is in business to operate a standard Indian restaurant business in San Francisco – California. We are in the restaurant industry to maximize profits and we are going to go all the way out to ensure that we achieve our business goals and objectives.

In essence, our source of income will be the retailing of the following products at affordable prices/offering the following services;

• Sale of beverages, such as water, juice and sodas

10. Sales Forecast

One thing is certain when it comes to restaurant business, if your restaurant is centrally positioned, you will always attract customers and that will sure translate to increase in revenue generation for the business.

We are well positioned to take on the available market in San Francisco – California and we are quite optimistic that we will meet our set target of generating enough profits from our first six months of operation and grow the business and our clientele base.

We have been able to critically examine the Indian restaurant industry, we have analyzed our chances in the industry and we have been able to come up with the following sales forecast. The sales projections are based on information gathered on the field and some assumptions that are peculiar to startups in San Francisco – California.

Below is the sales projection for Ravi Rajamma® Indian Restaurant, LLC, it is based on the location of our business and other factors as it relates to Indian restaurant start – ups in the United States;

• First Fiscal Year: $240,000
• Second Fiscal Year: $450,000
• Third Fiscal Year: $750,000

N.B : This projection was done based on what is obtainable in the industry and with the assumption that there won’t be any major economic meltdown and there won’t be any major competitor offering same delicacies as we do within the same location. Please note that the above projection might be lower and at the same time it might be higher.

• Marketing Strategy and Sales Strategy

Before choosing a location for Ravi Rajamma® Indian Restaurant, LLC, we conducted a thorough market survey and feasibility studies in order for us to penetrate the available market and become the preferred choice for residents of San Francisco.

We have detailed information and data that we were able to utilize to structure our business to attract the number of customers we want to attract per time.

We hired experts who have good understanding of the restaurant industry to help us develop marketing strategies that will help us achieve our business goal of winning a larger percentage of the available market in San Francisco – California.

In summary, Ravi Rajamma® Indian Restaurant, LLC will adopt the following sales and marketing approach to win customers over;

• Open our Indian restaurant in a grand style with a party for all.
• Introduce our Indian restaurant by sending introductory letters alongside our brochure to corporate organizations, schools, event planners, households, Indian and Asia communities and key stake holders in San Francisco – California
• Ensure that we have wide varieties of Indian cum Asian inspired delicacies and soft drinks in our restaurant at all times.
• Make use of attractive hand bills to create awareness and also to give direction to our restaurant
• Position our signage/flexi banners at strategic places around San Francisco – California
• Position our greeters to welcome and direct potential customers
• Create a loyalty plan that will enable us reward our regular customers
• Engage in direct marketing via our sales agents

11. Publicity and Advertising Strategy

Despite the fact that our Indian restaurant is well located, we will still go ahead to intensify publicity for the business. Ravi Rajamma® Indian Restaurant, LLC has a long term plan of opening chains of Indian restaurants in various locations in California and key cities in the United States, which is why we will deliberately build our brand to be well accepted in San Francisco Bay Area before venturing out.

As a matter of fact, our publicity and advertising strategy is not solely for winning customers over but to effectively communicate our brand. Here are the platforms we intend leveraging on to promote and advertise Ravi Rajamma® Indian Restaurant, LLC;

• Place adverts on community based newspapers, radio stations and TV stations.
• Encourage the use of word of mouth publicity from our loyal customers
• Leverage on the internet and social media platforms like YouTube, Instagram, Facebook, Twitter, LinkedIn, Snapchat, Google+ and other platforms to promote our brand.
• Ensure that our we position our banners and billboards in strategic positions all around San Francisco – California
• Distribute our fliers and handbills in target areas in and around our neighborhood
• Advertise our business in our official website and employ strategies that will help us pull traffic to the site
• Brand all our official cars and delivery vans and ensure that all our staff members wear our branded shirt or cap at regular intervals.

12. Our Pricing Strategy

Pricing is one of the key factors that gives leverage to restaurants, it is normal for consumers to go to places where they can purchase food at cheaper prices which is why big players in the restaurant industry will continue to attract loads of consumers.

We know we don’t have the capacity to compete with bigger and well – established Indian restaurants, but we will ensure that the prices of all the delicacies that are available in our restaurant are competitive with what is obtainable amongst Indian restaurant within our level.

We are aware that there are contracts for supply of Indian cum Asian inspired foods and soft drinks by government establishments, NGOs, corporate organizations or big religious organization; we will ensure that we abide by the bidding pricing template when we bid for such contracts.

• Payment Options

At Ravi Rajamma® Indian Restaurant, LLC, our payment policy will be all inclusive because we are quite aware that different people prefer different payment options as it suits them. Here are the payment options that Ravi Rajamma® Indian Restaurant, LLC will make available to her clients;

• Payment with cash
• Payment via credit cards / Point of Sale Machines (POS Machines)
• Payment via online bank transfer
• Payment via check
• Payment via mobile money transfer

In view of the above, we have chosen banking platforms that will enable our client make payment for our Indian inspired delicacies without any stress on their part. Our bank account numbers will be made available on our website and promotional materials.

13. Startup Expenditure (Budget)

In setting up any business, the amount or cost will depend on the approach and scale you want to undertake. If you intend to go big by renting a place, then you would need a good amount of capital as you would need to ensure that your employees are well taken care of, and that your facility is conducive enough for workers to be creative and productive.

The tools and equipment that will be used are nearly the same cost everywhere, and any difference in prices would be minimal and can be overlooked. As for the detailed cost analysis for starting a restaurant; it might differ in other countries due to the value of their money. These are the key areas where we will spend our startup capital;

• The total fee for registering the business in the United States of America – $750.
• Legal expenses for obtaining licenses and permits as well as the accounting services (software, P.O.S machines and other software) – $1,300.
• Marketing promotion expenses for the grand opening of Ravi Rajamma® Indian Restaurant, LLC in the amount of $3,500 and as well as flyer printing (2,000 flyers at $0.04 per copy) for the total amount of – $3,580.
• Cost for hiring Business Consultant – $2,500.
• Insurance (general liability, workers’ compensation and property casualty) coverage at a total premium – $2,400.
• The cost for payment of rent for 12 months at $1.76 per square feet in the total amount of $105,600.
• The cost for construction of a fast food restaurant – $100,000.
• Other start-up expenses including stationery ( $500 ) and phone and utility deposits ( $2,500 ).
• Operational cost for the first 3 months (salaries of employees, payments of bills et al) – $100,000
• The cost for Start-up inventory (food ingredients, drinks and packaging materials et al) – $80,000
• Storage hardware (bins, rack, shelves, food case) – $3,720
• The cost for counter area equipment (counter top, sink, ice machine, etc.) – $9,500
• The cost for store equipment (cash register, security, ventilation, signage) – $13,750
• The cost of purchase of distribution vans – $50,000
• The cost for the purchase of furniture and gadgets (Computers, Printers, Telephone, TVs, Sound System, tables and chairs et al) – $4,000.
• The cost of Launching a Website – $600
• The cost for our opening party – $10,000
• Miscellaneous – $10,000

We would need an estimate of two hundred and fifty thousand dollars ( $250,000 ) to successfully set up our Indian restaurant in San Francisco – California.

Generating Startup Capital for Ravi Rajamma® Indian Restaurant, LLC

Ravi Rajamma® Indian Restaurant, LLC is a family business that is solely owned and financed by Ravi Rajamma and his immediate family members. They do not intend to welcome any external business partner which is why he has decided to restrict the sourcing of the startup capital to 3 major sources.

• Generate part of the startup capital from personal savings
• Source for soft loans from family members and friends
• Apply for loan from my bank

N.B: We have been able to generate about $100,000 ( Personal savings $80,000 and soft loan from family members $20,000 ) and we are at the final stages of obtaining a loan facility of $150,000 from our bank. All the papers and documents have been signed and submitted, the loan has been approved and any moment from now our account will be credited with the amount.

14. Sustainability and Expansion Strategy

The future of a business lies in the number of loyal customers that they have, the capacity and competence of their employees, their investment strategy and business structure. If all of these factors are missing from a business, then it won’t be too long before the business closes shop.

One of our major goals of starting Ravi Rajamma® Indian Restaurant, LLC is to build a business that will survive off its own cash flow without the need for injecting finance from external sources once the business is officially running.

We know that one of the ways of gaining approval and winning customers over is to retail our Indian and Asian inspired delicacies and drinks a little bit cheaper than what is obtainable in the market and we are prepared to survive on lower profit margin for a while.

Ravi Rajamma® Indian Restaurant, LLC will make sure that the right foundation, structures and processes are put in place to ensure that our staff welfare are well taken of. Our company’s corporate culture is designed to drive our business to greater heights and training and retraining of our workforce is at the top burner.

We know that if that is put in place, we will be able to successfully hire and retain the best hands we can get in the industry; they will be more committed to help us build the business of our dreams.

Check List/Milestone

• Business Name Availability Check: Completed
• Business Registration: Completed
• Opening of Corporate Bank Accounts: Completed
• Securing Point of Sales (POS) Machines: Completed
• Opening Mobile Money Accounts: Completed
• Opening Online Payment Platforms: Completed
• Application and Obtaining Tax Payer’s ID: In Progress
• Application for business license and permit: Completed
• Purchase of Insurance for the Business: Completed
• Leasing of facility and remodeling the restaurant: In Progress
• Conducting Feasibility Studies: Completed
• Generating capital from family members: Completed
• Applications for Loan from the bank: In Progress
• Writing of Business Plan: Completed
• Drafting of Employee’s Handbook: Completed
• Drafting of Contract Documents and other relevant Legal Documents: In Progress
• Design of The Company’s Logo: Completed
• Printing of Packaging and Promotional Materials: In Progress
• Recruitment of employees: In Progress
• Purchase of the needed furniture, racks, shelves, computers, electronic appliances, office appliances and CCTV: In progress
• Creating Official Website for the Company: In Progress
• Creating Awareness for the business both online and around the community: In Progress
• Health and Safety and Fire Safety Arrangement (License): Secured
• Opening launching party planning: In Progress
• Compilation of our list of delicacies that will be available in our menu: Completed
• Establishing business relationship with vendors – suppliers of food ingredients, coffees and soft drinks: In Progress

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The $5 McDonald's meal is making a grand comeback in June — but only for a month

• McDonald's plans to launch a limited-time $5 meal.
• In first-quarter earnings, the company's leadership highlighted how inflation has affected customers.
• Other fast food chains are also worried about affordability.

McDonald's is looking to launch a $5 meal in the US in a move to bring back price-sensitive customers .

The meal includes four items, people familiar with the matter told Bloomberg and Restaurant Business . Customers would choose between two of the chain's signature burgers — a McChicken or a McDouble — and get four-piece McNuggets, fries , and a drink. The $5 promotion would last for a month, Bloomberg reported.

The deal will start on June 25, The Wall Street Journal and other outlets reported.

The discussions about the new deal come three weeks after the fast food giant's first-quarter earnings call, where leadership highlighted how customers are increasingly price-sensitive.

"I think affordability is clearly an area where consumer expectations are heightened," McDonald's chief financial officer Ian Borden said on the call. "Obviously, they're getting hit ," by inflation, he added.

The company previewed a value meal on the earnings call without any specifics. CEO Chris Kempczinski said McDonald's has local value meals around the US, but no standard national offering like competitors do.

Related stories

A $5 meal would be a stark drop from current prices, especially in higher-cost cities, according to a Business Insider analysis.

A meal consisting of the same four items — a McChicken, fries, a drink, and four-piece chicken nuggets — costs $18.26 in downtown New York City. In downtown San Francisco, the McChicken version costs $16.15, and the burger variant costs $17.75.

The new bundle would be priced lower than a Happy Meal, which starts at $6.39 in downtown Manhattan.

The company's stock has fallen about 7% year-to-date as investors worry about rising costs and intensifying fast-food competition.

Fast-food chains across the US are grappling with fewer orders from customers who no longer find their meals affordable. Wendy's, Shake Shack , Starbucks and Burger King parent Restaurant Brands International have all said in their latest earnings call that they will exercise caution on prices.

"We're going to stay careful on pricing," Gunther Plosch, Wendy's CFO, said in its earnings call earlier this month. "I don't think we're going to get too greedy."

Fast-food giants have also been hit by California's new minimum $20 hourly wage for limited-service restaurants. Franchisees that have raised prices are worried they may lose customers to sit-in dining chains like Chili's and Applebee's , which are not subject to the wage hike.

McDonald's did not respond to an immediate request for comment sent outside standard business hours.

Watch: US vs India McDonald's | Food Wars

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Distribution of upfront capital expenditure for dine-in restaurants in India 2023

In 2023, dine-in restaurants deployed 79 percent of their upfront capital expenditure for equipment, furniture, and other setup costs in India. 13 percent of the upfront capital expenditure was acquiring appropriate licenses.

Distribution of upfront capital expenditure for dine-in restaurants in India in 2023

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Statistics on " Hotel industry in India "

• Revenue of travel and tourism market in selected countries worldwide 2023
• Countries planning the largest number of business events and trade fairs 2023
• Leading hotel brands in the world 2022, by traveler ratings
• Travel market distribution in India FY 2018-2027, by type
• Value of hotel market in India FY 2018-2027
• Distribution of hotel market in India FY 2018-2027, by type
• Distribution of the hotel market in India FY 2018-2027, by booking channel
• Number of approved hotels in India 2022, by category
• Average daily rate of hotels in India FY 2016-2023
• Hotel occupancy rate in India FY 2023, by major cities
• Average rate of Indian hotel rooms FY 2023, by city
• Revenue per available hotel room across Mumbai in India FY 2010-2023
• Revenue per available hotel room across New Delhi in India 2010-2023
• Revenue per available hotel room across Hyderabad in India FY 2010-2023
• Indian Hotels Company Limited's revenue FY 2016-2023
• Consolidated revenue of EIH in India FY 2018-2023
• Number of keys in Chalet Hotels in India 2022, by hotel
• Number of Lemon Tree Hotels in India 2023, by brand
• PE/VC investment deals in travel and hospitality 2013-2022
• Value of M&A deals in the travel and hospitality India 2014-2021
• Value of PE/VC deals in the travel and hospitality sector India 2022, by company
• Revenue of OYO across India FY 2019-2023

Other statistics that may interest you Hotel industry in India

Global overview

• Premium Statistic Revenue of travel and tourism market in selected countries worldwide 2023
• Premium Statistic Global hotel and resort industry market size worldwide 2013-2023
• Premium Statistic Countries planning the largest number of business events and trade fairs 2023
• Basic Statistic Leading hotel brands in the world 2022, by traveler ratings

Indian hotel market

• Premium Statistic Travel market distribution in India FY 2018-2027, by type
• Premium Statistic Value of hotel market in India FY 2018-2027
• Premium Statistic Distribution of hotel market in India FY 2018-2027, by type
• Premium Statistic Distribution of the hotel market in India FY 2018-2027, by booking channel

Key indicators

• Premium Statistic Number of approved hotels in India 2022, by category
• Basic Statistic Occupancy rate in hotels in India FY 2001-2024
• Premium Statistic Number of hotel rooms in India FY 2001-2023
• Basic Statistic Average daily rate of hotels in India FY 2016-2023

Regional breakdown

• Premium Statistic Hotel occupancy rate in India FY 2023, by major cities
• Premium Statistic Average rate of Indian hotel rooms FY 2023, by city
• Premium Statistic Revenue per available hotel room across Mumbai in India FY 2010-2023
• Premium Statistic Revenue per available hotel room across New Delhi in India 2010-2023
• Premium Statistic Revenue per available hotel room across Hyderabad in India FY 2010-2023

Key players

• Basic Statistic Leading hotel and restaurant companies in India 2023, by market capitalization
• Premium Statistic Indian Hotels Company Limited's revenue FY 2016-2023
• Premium Statistic Consolidated revenue of EIH in India FY 2018-2023
• Premium Statistic Number of keys in Chalet Hotels in India 2022, by hotel
• Premium Statistic Number of Lemon Tree Hotels in India 2023, by brand

Emerging players

• Premium Statistic PE/VC investment deals in travel and hospitality 2013-2022
• Premium Statistic Value of M&A deals in the travel and hospitality India 2014-2021
• Premium Statistic Value of PE/VC deals in the travel and hospitality sector India 2022, by company
• Premium Statistic Revenue of OYO across India FY 2019-2023

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How Biden Adopted Trump’s Trade War With China

The president has proposed new barriers to electric vehicles, steel and other goods..

This transcript was created using speech recognition software. While it has been reviewed by human transcribers, it may contain errors. Please review the episode audio before quoting from this transcript and email [email protected] with any questions.

From “The New York Times,” I’m Sabrina Tavernise, and this is “The Daily.”

[MUSIC PLAYING]

Donald Trump upended decades of American policy when he started a trade war with China. Many thought that President Biden would reverse those policies. Instead, he’s stepping them up. Today, my colleague, Jim Tankersley, explains.

It’s Monday, May 13.

Jim, it’s very nice to have you in the studio.

It’s so great to be here, Sabrina. Thank you so much.

So we are going to talk today about something I find very interesting and I know you’ve been following. We’re in the middle of a presidential campaign. You are an economics reporter looking at these two candidates, and you’ve been trying to understand how Trump and Biden are thinking about our number one economic rival, and that is China.

As we know, Trump has been very loud and very clear about his views on China. What about Biden?

Well, no one is going to accuse President Biden of being as loud as former President Trump. But I think he’s actually been fairly clear in a way that might surprise a lot of people about how he sees economic competition with China.

We’re going after China in the wrong way. China is stealing intellectual property. China is conditioning —

And Biden has, kind of surprisingly, sounded a lot, in his own Joe Biden way, like Trump.

They’re not competing. They’re cheating. They’re cheating. And we’ve seen the damage here in America.

He has been very clear that he thinks China is cheating in trade.

The bottom line is I want fair competition with China, not conflict. And we’re in a stronger position to win the economic competition of the 21st century against China or anyone else because we’re investing in America and American workers again. Finally.

And maybe the most surprising thing from a policy perspective is just how much Biden has built on top of the anti-China moves that Trump made and really is the verge of his own sort of trade war with China.

Interesting. So remind us, Jim, what did Trump do when he actually came into office? We, of course, remember Trump really talking about China and banging that drum hard during the campaign, but remind us what he actually did when he came into office.

Yeah, it’s really instructive to start with the campaign, because Trump is talking about China in some very specific ways.

We have a $500 billion deficit, trade deficit, with China. We’re going to turn it around. And we have the cards. Don’t forget —

They’re ripping us off. They’re stealing our jobs.

They’re using our country as a piggy bank to rebuild China, and many other countries are doing the same thing. So we’re losing our good jobs, so many.

The economic context here is the United States has lost a couple of million jobs in what was called the China shock of the early 2000s. And Trump is tapping into that.

But when the Chinese come in, and they want to make great trade deals — and they make the best trade deals, and not anymore. When I’m there, we turn it around, folks. We turn it around. We have —

And what he’s promising as president is that he’s going to bring those jobs back.

I’ll be the greatest jobs president that God ever created. I’ll take them back from China, from Japan.

And not just any jobs, good-paying manufacturing jobs, all of it — clothes, shoes, steel, all of these jobs that have been lost that American workers, particularly in the industrial Midwest, used to do. Trump’s going to bring them back with policy meant to rebalance the trade relationship with China to get a better deal with China.

So he’s saying China is eating our lunch and has been for decades. That’s the reason why factory workers in rural North Carolina don’t have work. It’s those guys. And I’m going to change that.

Right. And he likes to say it’s because our leaders didn’t cut the right deal with them, so I’m going to make a better deal. And to get a better deal, you need leverage. So a year into his presidency, he starts taking steps to amass leverage with China.

And so what does that look like?

Just an hour ago, surrounded by a hand-picked group of steelworkers, President Trump revealed he was not bluffing.

It starts with tariffs. Tariffs are taxes that the government imposes on imports.

Two key global imports into America now face a major new barrier.

Today, I’m defending America’s national security by placing tariffs on foreign imports of steel and aluminum.

And in this case, it’s imports from a lot of different countries, but particularly China.

Let’s take it straight to the White House. The president of the United States announcing new trade tariffs against China. Let’s listen in.

This has been long in the making. You’ve heard —

So Trump starts, in 2018, this series of tariffs that he’s imposing on all sorts of things — washing machines, solar panels, steel, aluminum. I went to Delaware to a lighting store at that time, I remember, where basically everything they sold came from China and was subject to the Trump tariffs, because that’s where lighting was made now.

Interesting.

Hundreds of billions of dollars of Chinese goods now start falling under these Trump tariffs. The Chinese, of course, don’t take this lying down.

China says it is not afraid of a trade war with the US, and it’s fighting back against President Trump with its own tariffs on US goods.

They do their own retaliatory tariffs. Now American exports to China cost more for Chinese consumers. And boom, all of a sudden, we are in the midst of a full-blown trade war between the United States and Beijing.

Right. And that trade war was kind of a shock because for decades, politicians had avoided that kind of policy. It was the consensus of the political class in the United States that there should not be tariffs like that. It should be free trade. And Trump just came in and blew up the consensus.

Yeah. And Sabrina, I may have mentioned this once or 700 times before on this program, but I talk to a lot of economists in my job.

Yeah, it’s weird. I talk to a lot of economists. And in 2018 when this started, there were very, very, very few economists of any political persuasion who thought that imposing all these tariffs were a good idea. Republican economists in particular, this is antithetical to how they think about the world, which is low taxes, free trade. And even Democratic economists who thought they had some problems with the way free trade had been conducted did not think that Trump’s “I’m going to get a better deal” approach was going to work. And so there was a lot of criticism at the time, and a lot of politicians really didn’t like it, a lot of Democrats, many Republicans. And it all added up to just a real, whoa, I don’t think this is going to work.

So that begs the question, did it?

Well, it depends on what you mean by work. Economically, it does not appear to have achieved what Trump wanted. There’s no evidence yet in the best economic research that’s been done on this that enormous amounts of manufacturing jobs came back to the United States because of Trump’s tariffs. There was research, for example, on the tariffs on washing machines. They appear to have helped a couple thousand jobs, manufacturing jobs be created in the United States, but they also raised the price of washing machines for everybody who bought them by enough that each additional job that was created by those tariffs effectively cost consumers, like, $800,000 per job.

There’s like lots of evidence that the sectors Trump was targeting to try to help here, he didn’t. There just wasn’t a lot of employment rebound to the United States. But politically, it really worked. The tariffs were very popular. They had this effect of showing voters in those hollowed-out manufacturing areas that Trump was on their team and that he was fighting for them. Even if they didn’t see the jobs coming back, they felt like he was standing up for them.

So the research suggests this was a savvy political move by Trump. And in the process, it sort of changes the political economic landscape in both parties in the United States.

Right. So Trump made these policies that seemed, for many, many years in the American political system, fringe, isolationist, economically bad, suddenly quite palatable and even desirable to mainstream policymakers.

Yeah. Suddenly getting tough on China is something everyone wants to do across both parties. And so from a political messaging standpoint, being tough on China is now where the mainstream is. But at the same time, there is still big disagreement over whether Trump is getting tough on China in the right way, whether he’s actually being effective at changing the trade relationship with China.

Remember that Trump was imposing these tariffs as a way to get leverage for a better deal with China. Well, he gets a deal of sorts, actually, with the Chinese government, which includes some things about tariffs, and also China agreeing to buy some products from the United States. Trump spins it as this huge win, but nobody else really, including Republicans, acts like Trump has solved the problem that Trump himself has identified. This deal is not enough to make everybody go, well, everything’s great with China now. We can move on to the next thing.

China remains this huge issue. And the question of what is the most effective way to deal with them is still an animating force in politics.

Got it. So politically, huge win, but policy-wise and economically, and fundamentally, the problem of China still very much unresolved.

Absolutely.

So then Biden comes in. What does Biden do? Does he keep the tariffs on?

Biden comes to office, and there remains this real pressure from economists to roll back what they consider to be the ineffective parts of Trump’s trade policy. That includes many of the tariffs. And it’s especially true at a time when almost immediately after Biden takes office, inflation spikes. And so Americans are paying a lot of money for products, and there’s this pressure on Biden, including from inside his administration, to roll back some of the China tariffs to give Americans some relief on prices.

And Biden considers this, but he doesn’t do it. He doesn’t reverse Trump’s tariff policy. In the end, he’s actually building on it.

We’ll be right back.

So Jim, you said that Biden is actually building on Trump’s anti-China policy. What exactly does that look like?

So Biden builds on the Trump China policy in three key ways, but he does it with a really specific goal that I just want you to keep in mind as we talk about all of this, which is that Biden isn’t just trying to beat China on everything. He’s not trying to cut a better deal. Biden is trying to beat China in a specific race to own the clean-energy future.

Clean energy.

Yeah. So keep that in mind, clean energy. And the animating force behind all of the things Biden does with China is that Biden wants to beat China on what he thinks are the jobs of the future, and that’s green technology.

Got it. OK. So what does he do first?

OK. Thing number one — let’s talk about the tariffs. He does not roll them back. And actually, he builds on them. For years, for the most part, he just lets the tariffs be. His administration reviews them. And it’s only now, this week, when his administration is going to actually act on the tariffs. And what they’re going to do is raise some of them. They’re going to raise them on strategic green tech things, like electric vehicles, in order to make them more expensive.

And I think it’s important to know the backdrop here, which is since Biden has taken office, China has started flooding global markets with really low-cost green technologies. Solar panels, electric vehicles are the two really big ones. And Biden’s aides are terrified that those imports are going to wash over the United States and basically wipe out American automakers, solar panel manufacturers, that essentially, if Americans can just buy super-cheap stuff from China, they’re not going to buy it from American factories. Those factories are going to go out of business.

So Biden’s goal of manufacturing jobs in clean energy, China is really threatening that by dumping all these products on the American market.

Exactly. And so what he wants to do is protect those factories with tariffs. And that means increasing the tariffs that Trump put on electric vehicles in hopes that American consumers will find them too expensive to buy.

But doesn’t that go against Biden’s goal of clean energy and things better for the environment? Lots of mass-market electric vehicles into the United States would seem to advance that goal. And here, he’s saying, no, you can’t come in.

Right, because Biden isn’t just trying to reduce emissions at all costs. He wants to reduce emissions while boosting American manufacturing jobs. He doesn’t want China to get a monopoly in these areas. And he’s also, in particular, worried about the politics of lost American manufacturing jobs. So Biden does not want to just let you buy cheaper Chinese technologies, even if that means reducing emissions.

He wants to boost American manufacturing of those things to compete with China, which brings us to our second thing that Biden has done to build on Trump’s China policy, which is that Biden has started to act like the Chinese government in particular areas by showering American manufacturers with subsidies.

I see. So dumping government money into American businesses.

Yes, tax incentives, direct grants. This is a way that China has, in the past decades, built its manufacturing dominance, is with state support for factories. Biden is trying to do that in particular targeted industries, including electric vehicles, solar power, wind power, semiconductors. Biden has passed a bunch of legislation that showers those sectors with incentives and government support in hopes of growing up much faster American industry.

Got it. So basically, Biden is trying to beat China at its own game.

Yeah, he’s essentially using tariffs to build a fortress around American industry so that he can train the troops to fight the clean energy battle with China.

And the troops being American companies.

Yes. It’s like, we’re going to give them protection — protectionist policy — in order to get up to size, get up to strength as an army in this battle for clean energy dominance against the Chinese.

Got it. So he’s trying to build up the fortress. What’s the third thing Biden does? You mentioned three things.

Biden does not want the United States going it alone against China. He’s trying to build an international coalition, wealthy countries and some other emerging countries that are going to take on China and try to stop the Chinese from using their trade playbook to take over all these new emerging industrial markets.

But, Jim, why? What does the US get from bringing our allies into this trade war? Why does the US want that?

Some of this really is about stopping China from gaining access to new markets. It’s like, if you put the low-cost Chinese exports on a boat, and it’s going around the world, looking for a dock to stop and offload the stuff and sell it, Biden wants barriers up at every possible port. And he wants factories in those places that are competing with the Chinese.

And a crucial fact to know here is that the United States and Europe, they are behind China when it comes to clean-energy technology. The Chinese government has invested a lot more than America and Europe in building up its industrial capacity for clean energy. So America and its allies want to deny China dominance of those markets and to build up their own access to them.

And they’re behind, so they’ve got to get going. It’s like they’re in a race, and they’re trailing.

Yeah, it’s an economic race to own these industries, and it’s that global emissions race. They also want to be bringing down fossil-fuel emissions faster than they currently are, and this is their plan.

So I guess, Jim, the question in my mind is, Trump effectively broke the seal, right? He started all of these tariffs. He started this trade war with China. But he did it in this kind of jackhammer, non-targeted way, and it didn’t really work economically. Now Biden is taking it a step further. But the question is, is his effort here going to work?

The answer to whether it’s going to work really depends on what your goals are. And Biden and Trump have very different goals. If Trump wins the White House back, he has made very clear that his goal is to try to rip the United States trade relationship with China even more than he already has. He just wants less trade with China and more stuff of all types made in the United States that used to be made in China. That’s a very difficult goal, but it’s not Biden’s goal.

Biden’s goal is that he wants America to make more stuff in these targeted industries. And there is real skepticism from free-market economists that his industrial policies will work on that, but there’s a lot of enthusiasm for it from a new strain of Democratic economists, in particular, who believe that the only chance Biden has to make that work is by pulling all of these levers, by doing the big subsidies and by putting up the tariffs, that you have to have both the troops training and the wall around them. And if it’s going to work, he has to build on the Trump policies. And so I guess you’re asking, will it work? It may be dependent upon just how far he’s willing to go on the subsidies and the barriers.

There’s a chance of it.

So, Jim, at the highest level, whatever the economic outcome here, it strikes me that these moves by Biden are pretty remarkably different from the policies of the Democratic Party over the decades, really going in the opposite direction. I’m thinking of Bill Clinton and NAFTA in the 1990s. Free trade was the real central mantra of the Democratic Party, really of both parties.

Yeah, and Biden is a real break from Clinton. And Clinton was the one who actually signed the law that really opened up trade with China, and Biden’s a break from that. He’s a break from even President Obama when he was vice president. Biden is doing something different. He’s breaking from that Democratic tradition, and he’s building on what Trump did, but with some throwback elements to it from the Roosevelt administration and the Eisenhower administration. This is this grand American tradition of industrial policy that gave us the space race and the interstate highway system. It’s the idea of using the power of the federal government to build up specific industrial capacities. It was in vogue for a time. It fell out of fashion and was replaced by this idea that the government should get out of the way, and you let the free market drive innovation. And now that industrial policy idea is back in vogue, and Biden is doing it.

So it isn’t just a shift or an evolution. It’s actually a return to big government spending of the ‘30s and the ‘40s and the ‘50s of American industrialism of that era. So what goes around comes around.

Yeah, and it’s a return to that older economic theory with new elements. And it’s in part because of the almost jealousy that American policymakers have of China and the success that it’s had building up its own industrial base. But it also has this political element to it. It’s, in part, animated by the success that Trump had making China an issue with working-class American voters.

You didn’t have to lose your job to China to feel like China was a stand-in for the forces that have taken away good-paying middle-class jobs from American workers who expected those jobs to be there. And so Trump tapped into that. And Biden is trying to tap into that. And the political incentives are pushing every future American president to do more of that. So I think we are going to see even more of this going forward, and that’s why we’re in such an interesting moment right now.

So we’re going to see more fortresses.

More fortresses, more troops, more money.

Jim, thank you.

You’re welcome.

Here’s what else you should know today. Intense fighting between Hamas fighters and Israeli troops raged in parts of Northern Gaza over the weekend, an area where Israel had declared Hamas defeated earlier in the war, only to see the group reconstitute in the power vacuum that was left behind. The persistent lawlessness raised concerns about the future of Gaza among American officials. Secretary of State Antony Blinken said on “Face the Nation” on Sunday that the return of Hamas to the North left him concerned that Israeli victories there would be, quote, “not sustainable,” and said that Israel had not presented the United States with any plan for when the war ends.

And the United Nations aid agency in Gaza said early on Sunday that about 300,000 people had fled from Rafah over the past week, the city in the enclave’s southernmost tip where more than a million displaced Gazans had sought shelter from Israeli bombardments elsewhere. The UN made the announcement hours after the Israeli government issued new evacuation orders in Rafah, deepening fears that the Israeli military was preparing to invade the city despite international warnings.

Today’s episode was produced by Nina Feldman, Carlos Prieto, Sidney Harper, and Luke Vander Ploeg. It was edited by M.J. Davis Lin, Brendan Klinkenberg, and Lisa Chow. Contains original music by Diane Wong, Marion Lozano, and Dan Powell, and was engineered by Alyssa Moxley. Our theme music is by Jim Brunberg and Ben Landsverk of Wonderly.

That’s it for “The Daily.” I’m Sabrina Tavernise. See you tomorrow.

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• May 16, 2024   •   30:47 The Make-or-Break Testimony of Michael Cohen
• May 15, 2024   •   27:03 The Possible Collapse of the U.S. Home Insurance System
• May 14, 2024   •   35:20 Voters Want Change. In Our Poll, They See It in Trump.
• May 13, 2024   •   27:46 How Biden Adopted Trump’s Trade War With China
• May 10, 2024   •   27:42 Stormy Daniels Takes the Stand
• May 9, 2024   •   34:42 One Strongman, One Billion Voters, and the Future of India
• May 8, 2024   •   28:28 A Plan to Remake the Middle East
• May 7, 2024   •   27:43 How Changing Ocean Temperatures Could Upend Life on Earth
• May 6, 2024   •   29:23 R.F.K. Jr.’s Battle to Get on the Ballot
• May 3, 2024   •   25:33 The Protesters and the President
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Hosted by Sabrina Tavernise

Produced by Nina Feldman ,  Carlos Prieto ,  Sydney Harper and Luke Vander Ploeg

Edited by M.J. Davis Lin ,  Brendan Klinkenberg and Lisa Chow

Original music by Diane Wong ,  Marion Lozano and Dan Powell

Engineered by Alyssa Moxley

Listen and follow The Daily Apple Podcasts | Spotify | Amazon Music | YouTube

Donald Trump upended decades of American policy when he started a trade war with China. Many thought that President Biden would reverse those policies. Instead, he’s stepping them up.

Jim Tankersley, who covers economic policy at the White House, explains.

On today’s episode

Jim Tankersley , who covers economic policy at the White House for The New York Times.

Background reading

Mr. Biden, competing with Mr. Trump to be tough on China , called for steel tariffs last month.

The Biden administration may raise tariffs on electric vehicles from China to 100 percent .

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We aim to make transcripts available the next workday after an episode’s publication. You can find them at the top of the page.

The Daily is made by Rachel Quester, Lynsea Garrison, Clare Toeniskoetter, Paige Cowett, Michael Simon Johnson, Brad Fisher, Chris Wood, Jessica Cheung, Stella Tan, Alexandra Leigh Young, Lisa Chow, Eric Krupke, Marc Georges, Luke Vander Ploeg, M.J. Davis Lin, Dan Powell, Sydney Harper, Mike Benoist, Liz O. Baylen, Asthaa Chaturvedi, Rachelle Bonja, Diana Nguyen, Marion Lozano, Corey Schreppel, Rob Szypko, Elisheba Ittoop, Mooj Zadie, Patricia Willens, Rowan Niemisto, Jody Becker, Rikki Novetsky, John Ketchum, Nina Feldman, Will Reid, Carlos Prieto, Ben Calhoun, Susan Lee, Lexie Diao, Mary Wilson, Alex Stern, Dan Farrell, Sophia Lanman, Shannon Lin, Diane Wong, Devon Taylor, Alyssa Moxley, Summer Thomad, Olivia Natt, Daniel Ramirez and Brendan Klinkenberg.

Our theme music is by Jim Brunberg and Ben Landsverk of Wonderly. Special thanks to Sam Dolnick, Paula Szuchman, Lisa Tobin, Larissa Anderson, Julia Simon, Sofia Milan, Mahima Chablani, Elizabeth Davis-Moorer, Jeffrey Miranda, Renan Borelli, Maddy Masiello, Isabella Anderson and Nina Lassam.

Luke Vander Ploeg is a senior producer on “The Daily” and a reporter for the National Desk covering the Midwest. More about Luke Vander Ploeg

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One of the loveliest ways to ease yourself fully out of the post-winter blahs and into springtime is to quit being a wallflower and instead surround yourself with living, blooming plants.

From botanical gardens to plant sales and garden tours, it’s time to make like the Scarecrow in “The Wizard of Oz” and while away the hours, conferring with flowers.

The waterfall at Coastal Maine Botanical Gardens in Boothbay. Photo by Tory Paxson, Courtesy of Coastal Maine Botanical Gardens

TOTALLY BOTANICAL

Coastal Maine Botanical Gardens in Boothbay is open for the season, daily from 9 a.m. to 5 p.m. Maine Days are May 31 to June 2, when anyone with a Maine driver’s license or state ID gets in for free. Ditto for dads/father figures on Father’s Day (June 16). Advance registration is required. With more than 300 acres of gardens and natural spaces, including a waterfall, there will be plenty to see, smell and bask in the scenery.

Here are more things to do in Boothbay

A tour group walks on the boardwalk at Viles Arboretum in Augusta. Joe Phelan/Kennebec Journal

Viles Arboretum is a botanical garden in Augusta with 6 miles of trails and more than 20 botanical collections. It’s open daily from sunrise to sunset, and admission is free. There are 224 acres with all sorts of flora and fauna to discover. Leashed dogs are welcome, and the visitor center is open from 10:30 a.m. to 4:30 p.m. Wednesday through Saturday.

Viles Arboretum offers medicinal plant walks, and although the May 18 session is full, you can still register for the June 15 and Sept. 14 events, lead by herbalist, homeopath and flower essence practitioner Debra Bluth. Tickets are $25. Advertisement

The Mount Desert Land & Garden Preserve has four areas to explore on its property in Northeast Harbor: the Asticou Azelea Garden (dawn to dusk daily), the Abby Aldrich Rockefeller Garden (noon to 4 p.m. Tuesday through Sunday from July 9 to Sept. 8, reservations required), Thuya Garden (dawn to dusk daily, June 15 to Oct. 14) and Little Long Pond Natural Lands (hiking trails and carriage roads open dawn to dusk daily). On June 26, at the Wildflowers of Little Long Pond event, participants can wander around the garden’s fields and forest, spotting wildflowers along the way while practicing how to identify them.

Joyce Saltman, right, and Beth Anisbeck embrace a tree for 60 seconds during a tree hugging event sponsored by Portland Parks and Recreation, at Deering Oaks Park last year. Carl D. Walsh/Staff Photographer

TOURS AND MORE

2nd Annual Tree Hugging 11 a.m. to 1 p.m. Saturday. Deering Oaks Park, Portland. portlandmaine.gov The tree hugging is a family-friendly community gathering to celebrate Portland’s many trees. Park ranger Liz Collado will lead a sensory awakening and forest bathing session. Along with tree hugging, there will be a storytime, and you can touch a forestry truck and meet naturalist Noah Querido and Portland city arborist Mark Reiland. Just down the road, you’ll find Fessenden Park, on the corner of Brighton and Deering Avenues. The tulips have arrived, and it’s worth a visit to see them.

McLaughlin Garden Lilac Festival 10 a.m. to 4 p.m. May 24. McLaughlin Garden and Homestead, 97 Main St., South Paris, $5. mclaughlingardens.org You’ll find more than 125 varieties of lilacs at the McLaughlin Garden Lilac Festival. Explore on your own or take a guided tour led by a horticulturist. There will also be family-friendly activities, and you can shop for native and unusual plants.

4th annual Woodfords Community Garden Tour 1-4 p.m. June 8. Woodfords Corner Community in Back Cove, Deering Highlands, Oakdale and Deering Center, $20 suggested donation. woodfordscorner.org Presented by Friends of Woodfords Corner, this self-guided tour features at least 10 gardens. As you make your way down the list, you’ll find yourself pleasantly surprised by all of the hidden havens bursting with flowers, plants and impressive yardscaping elements.

Peony Society of Maine 23rd annual Garden Tour 10 a.m. to 3 p.m. June 8 and 15. Both tours start at 1348 Ohio St., Bangor, $5 donation. peonysocietyofmaine.net You’ll visit multiple gardens in Bangor, Winterport, Ripley and St. Albans, and your senses will be filled with countless peonies. A peony plant will be raffled off at the end of each tour. Advertisement

Hidden Gardens of Historic Bath 10 a.m. to 2 p.m. June 22. Sagadahoc Preservation Inc., 880 Washington St., Bath, $40. sagadahocpreservation.org The Hidden Gardens of Historic Bath house and garden tour features several homes in North Bath. Every stop on the tour will be a treat for your senses and may motivate you to make some of your own magic when you get back home.

Garden Conservancy Open Garden Days 10 a.m. to 4 p.m. June 29. Beckett Castle Rose Garden, Singles Road, Cape Elizabeth, $10. gardenconservancy.org You’ll see plenty of roses as well as ocean views at Beckett Castle, which sits right on the water, with views of five lighthouses. The castle was built in 1871, and its rose garden features more than 70 varieties of heirloom roses. A 50-foot stone tower doubles as the rose arbor entrance to the castle.

PICK A PLANT SALE

Tate House Museum’s Annual Plant and Herb Sale 9 a.m. to 1 p.m. May 18. Tate House Museum, 1267 Westbrook St., Portland, 207-774-6177.  tatehouse.org The wide selection includes perennials divided from the museum’s 18th century reproduction garden. Visitors can also make their own “seed bombs” and get a sneak peak at a new installation by artist Ashley Page from 10 a.m. to noon.

Animal Refuge League of Greater Portland Spring Plant S ale 9 a.m. to 11 a.m. May 18, Animal Refuge League of Greater Portland, 217 Landing Road, Westbrook, 207-854-9771.  arlgp.org   Perennials, house plants and more will be on sale, and plants that don’t have specific pricing are “name your own fee.” Anyone interested in donating plants or pots to the sale should send a message to [email protected] .

Taking Root Plant Sale 9 a.m. to 1 p.m. June 1, Tom Settlemire Community Garden, Maurice Drive, Brunswick, 207-729-7694.  btlt.org This annual sale is organized by the Brunswick-Topsham Land Trust. Proceeds benefit the Common Good Garden, which provides food and gardening education for the Mid Coast Hunger Prevention Program. Master gardeners will be on hand to help shoppers choose their best options.

Scarborough Land Trust Native Plant Sale and Spring Festival 9 a.m. to 1 p.m. June 1, Broadturn Farm, 388 Broadturn Road, Scarborough, 207-289-1199.  scarboroughlandtrust.org Visitors will find native plants, food vendors, local artisans, guided nature walks and activities for kids. To preorder plants, visit the Scarborough Land Trust website.

Maine Audubon Society Native Plants Sale and Festival 9 a.m. to 3 p.m., June 8, Gilsland Farm Audubon Center, 20 Gilsland Farm Road, Falmouth, 207-781-2330.  maineaudubon.org More than 75 species of native wildflowers, shrubs and tree seedlings will be available, along with workshops, info tables and experts.

Staff writer Megan Gray contributed to this report.

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Headed to Coastal Maine Botanical Gardens? Here’s what else to check out in Boothbay

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