How to start a small restaurant in India?

How to start a small restaurant

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How to start a small restaurant in India

Owning and running a restaurant is a dream of many. But most of us are scared to enter the food market due to heavy competition.

You always have a room for your restaurant in the market. Because both demand and supply are rising equivocally.


Starting a restaurant is a laborious and demanding task. It should be initiated with a plan and strategy that should be implemented throughout the process. If you always dreamt of opening a restaurant but don’t know how to start.

Then this article is going to serve as a perfect guide for you.

Guide for: How to start a small restaurant?

1. Choose a Concept

How to start a small restaurant in India

Choosing a concept for your restaurant is one of the most important parts of starting a restaurant.

You need to choose a theme for your restaurant. You need to choose everything like the style of service, services, interior, etc. The interior should comply with the theme of your restaurant. Here is an example of how the interior should be in tune with the theme.


If you are planning to serve traditional food from a particular Indian state, then the interior should be designed according to the culture of the state.


The location of your restaurant impacts the choice of theme. If you have decided and purchased a plot for construction then you can choose the concept according to the population of that area. And if you haven’t purchased or you don’t own the place you can choose the location according to the concept.

2. Create A Menu

How to start a small restaurant in India

Creating a menu needs creativity. You need to choose items that should be palatable and appealing. You need to name those items cautiously. You need to employ the staff according to the menu.

For example, if you are focusing on Indian cuisine you need chefs that are erudite in playing with spices and maintaining flavors. The cutlery, vessels, and other equipment, everything should be according to the menu.

You need to consider the demographic while choosing the menu for your restaurant.

The design of the menu should comply with the theme of your restaurant. If you are not planning to spend much on the menu, you can simply work on calligraphy to make it look attractive.

3. Prepare Your Business plan

How to start a small restaurant in India

A plan for a business is like spices to Indian food. Starting a business requires a plan. Your plan must contain the concept, finance, and everything related to your business. It should explain the how and when of your business.

The purpose and the concept of your business are unveiled to the investors through a business plan. It should be written in a bold and convincing tone.

A business plan should contain everything including the USP of your business.

This aids you in fetching the attention of investors. It should be a transparent description of your business idea.


4. Collect Finance

How to start a small restaurant in India

The next step is obtaining funds for your business. Not everyone can afford to open a restaurant through personal funding. You need external resources for the same.


It should be done cautiously. You need to prepare a budget that includes every expense you are going to incur for the restaurant. It should include the cost of obtaining the license, interior, equipment everything.

Then check the amount you have for the business and how much do you need. There are different methods of obtaining funds like pitching investors, traditional commercial loans, crowdfunding, etc.


5. Choose your location

How to start a small restaurant in India

Choosing a location is a crucial decision. The location you choose should comply with the theme and concept of your business.

The location should be chosen according to the target audience.

For example, if you are constructing your baby restaurant for college-crowd then it should be near the college or university.

Other important factors while choosing a location include labor costs. The labor costs vary according to the area. You need to perform competitor analysis before choosing a location. The space you require to build a restaurant is another important factor.

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6. Obtain Permits and licenses

How to start a small restaurant in India

Another important step is to complete legal formalities. You need to obtain several federal, local, and state permits to start a restaurant.

You should consult the required officials for the same. You need to obtain different types of licenses for your restaurant.

Those licenses include Business license, Employee Identification Number, Foodservice License, Liquor License, etc.


7. Design layout and space

How to start a small restaurant in India

It is important to design the layout and adjust the space of the restaurant. It has two components- front-of-house-space and your back-of-house space.

You need to consult the interior designers for the same. They can guide you with the layout and other interior designing matters.

The interior of a restaurant matters a lot. You need to consider different factors like Seating capacity, Dining room furniture, décor, etc.

The layout of the kitchen should also be designed cautiously. Different factors like dry and cold storage, food preparation, meal cooking should be considered.

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8. Finding Supplier

How to start a small restaurant in India

Now that you have designed the layout and design of the restaurant. The next step is to collect the equipment. You need to find the right supplier of equipment.

You can find them through reference and enjoy discounts. You would also need to make deals with food suppliers for your business.

Before making deals with suppliers do not forget to check the quality of the material they provide. As the quality of food, you provide is the game-changer. It can help you in attracting more customers.

You can either buy equipment or lease them. It is a great alternative for getting equipment as it cuts your cost.


9. Hire the Staff

How to start a small restaurant in India

Choosing the right staff for your restaurant is the real task.

As you are planning to start a small restaurant so you’d need less staff. You should focus on quality in such a scenario as the quantity is already meager.

The choice of cook should be done cautiously. Conduct an interview session and do not forget to check the reliability of the cook or other staff member you are going to hire.

Then train them and guide them accordingly.

10. Advertise your business

How to start a small restaurant in India

Advertising or promoting your business is one of the most important steps.

What is the use of building a restaurant if people are not apprised?

As you have started on a small scale you can invest in affordable marketing techniques. Instead of remaining stuck on traditional methods of marketing, you can also go for digital marketing. Consult a digital marketing firm that provides affordable services and maintains quality.

Also, add your business on Google My Business. It is free of cost method of expanding the reach of your business.

Tip: know more about How To Grow Your Business With Digital Marketing 2021


11. Host an Opening Ceremony

How to start a small restaurant in India

Do not forget to host an opening ceremony for your restaurant. It will allow you to get introduced to more people.

You can offer a trial menu for family and friends. You can invite neighboring hones and businesses for promoting and introducing your new business
Starting a small restaurant is not an easy task.

You need to follow the same procedure which is required for the big restaurants. The difference is you have to conduct the task on small scale and with a small budget.

The restaurant industry is an important part of the economy. It never goes out of trend. It may contain substantial risks but is worth investing in if everything is done precisely.

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