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Restaurant Business Plan – Start Your Own Profitable Business In India

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starting a restaurant business

Opening a restaurant business in India is exciting and fastest growing venture. Restaurant in India is consider as one of the most profitable business. Opportunity is very vast and you can select from various available niche. Food and beverage industries are one of the fastest growing in India. Before starting a restaurant business in India, it is very important to draw a business plan which is liked, fun and easily approachable by your customers. In this article you will get information on how to start restaurant, a sample restaurant business plan and profit margin in restaurant business in India.

Restaurant Business Plan Sample

  • Funding
  • Theme of your Restaurant
  • Location selection
  • Planning and designing interiors according to your theme
  • Selecting a name for your restaurant
  • Monthly rent if property is hired
  • Expenses in kitchen stocks and furniture
  • Salary and wages to the staff member
  • Finding investor in your business
  • Registration and licensing
  • Marketing and advertisement
  • Technologies

Theme Selection

Very first step for opening a restaurant is to have a clear concept on your theme plan that what type of restaurant you are going to open, are you planning for a casual restaurant or a luxurious dining restaurant with rain forest theme? What type of environment and service are you going to provide to your customers to comfort them? What type of food you are going to provide to your customers, what specialty should be there in your food or are you going to target some specific cuisine such as Italian, Chinese, Mexican or Indian? Basically you have to think what different you can give to your customer so that they visit your restaurant again and again.

Below are some theme which you can follow in restaurant interior designing and paintings

  • Rain forest theme
  • Wooden wave theme
  • Fake jungle theme
  • Complete white theme

Location of Restaurant

Location is very important part in your business plan. Whether you are buying a building or taking it on lease or constructing your own from scratch. You have to take right decision in choosing a perfect location for your restaurant. Below are some tips in location selection:-

  • Check for location nearest to crowded foot traffic. Restaurants near to shopping center, movie theater complex, hospitals, government offices and corporate area will bring some good flow of customers.
  • Check for type of crowd in that area. A crowded location with working professionals will bring more visitors to your restaurants.
  • Check for location where parking facility is available. Your customers should not have to worry about their vehicles.
  • Visibility of your restaurant is very important. Its location should be such that it is easily visible to public.
  • If the level of visibility is more then it is going to bring great deals to your business.

Prepare a Complete Profitable Business Plan

A comprehensive business plan is must for starting a restaurant business in India. In which you have to determine everything like carpet area, interior designing, menu items, nature of facility, staffing, and marketing plan. Opening a restaurant need lots of money and writing a business plan will help to measure the big hurdles in your restaurant plan.

In your business plan, you have to consider following things:-

  • Funding source
  • Competitor analysis
  • Expense in renting property i.e monthly rent
  • Interior designing expenses
  • Staff salary
  • Kitchen items expenses
  • Marketing expenses
  • Restaurant management software
  • Restaurant billing software
  • Setting price of your dishes
  • Final profit calculation
  • Risk management
  • Risk planning
  • Profit sharing (if any)

 

Raising Capital For Your Business

If you have enough fund as of now for opening up a restaurant then it is good for you. Otherwise, you can raise fund from your family members and your friends. If you have prepared a solid plan then you can go for business loan. Raising fund is most crucial part because most of the people find it difficult to arrange funds for their restaurant. Raising fund is tough part but not impossible. There are two ways to raise finance. Either from bank or an individual investor.

You can also avail business loan from bank, for availing business loan you should have following things:-

  • Your business model
  • Your experience in this business field
  • CIBIL score and
  • Collateral security offered. You can apply for collateral free loan under CGTMSE scheme offered by Government of India.

Raising fund from Investors is as demanding as from Bank. Many thinks that Investors are less demanding than banks but remember, banks or financial institute are only concerned about the repayment whereas Investors not only look for repayment but are also concerned about return scheme after investment.

Before presenting your Business Model to Investor Consider these tips:

  • Clearly mention the exact fund you are looking for
  • Mention how your business will benefit them, if they invest
  • What is the return scheme for the investors form your business

When you are opening a restaurant it is very important to reserve some amount of money which is called as capital amount. At your starting period you cannot expect cash inflow, there will be only expenses. To keep running your restaurant smoothly on track you need to have reserved capital, which you can use at least for 5-6 months.

Naming your Restaurant

Selecting name for your restaurant is most exciting part. Name can be based on theme of your restaurant. You can even select name as per specific cuisine which you are targeting. Name must be catchy to attract more people.

Registration and Licensing

Registration, License and Permit may take several weeks or even a month.

                License and permit required in restaurant business

  • Legal Entity like Solo firm/LLP/Company/Partnership
  • Food Safety License/Health/Trade License
  • Eating House License/Environmental Clearance
  • NOC from Fire Department
  • Shop and establishment act License
  • Labor License
  • Trade Mark registration

Monitor Your Expenses

Whether you want to buy an existing restaurant, or planning to start from scratch. Here you have to invest a lot. Rental cost can range from Rs 50 to Rs 250 / sqft, this will depend on size, location and building type. Also consider parking space rent, electric and water bills.

Expenses in Kitchen Stock and Furniture

Prepare a chart sheet on all basic stuff required to be fill in your restaurant from kitchen stock to furniture. It is going to be a long list which includes utensils, crockery, groceries, table & chair, air condition, refrigerator, microwave, chimney, gas, decorative stuff etc. This expenses need to be prepare earlier because as per this expense you have to raise fund.

Salary and wages to Staff Members

Keep a clear estimation on how many staff are you going to hire and what amount you are going to pay them as monthly salary. You can start with few staff member in the beginning and gradually increase your staff as per demand and cash inflow. Having an idea on all type of expenses in your business plan will help you to raise fund accordingly.

Business Promotion Strategies

Now a days in India, online marketing is backbone of any business. You must consider online marketing and try to get a website done for your business. Register your restaurant in various online food portals like Foodpanda, Zomato, Swiggy, etc. This will help you in getting more customers online.

Apart from all these portals, you can also start with online marketing, you can grow your business by creating a social media page. Facebook and Twitter page is best to go at beginning level. Getting an App for your reataurant can be achieved at later stage.

 

Get Reviews Online

Ask your customer to write review about your service in various social media platforms.

How Much Is Profit Margin In Restaurant Business?

Profit margin totally depends on your effort, concentration and input toward your business. Food and beverage industry are one of the fastest growing industries in India. Well-run restaurant make 20% – 60% profit depending on pricing, rent, inventory used, number of staff, etc.

Get Motivated And Take Action

If you are not going to take action now then someone else will take this opportunity from you. Believe in yourself and get started from today.

 

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