How to Start a Restaurant in India

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Several factors such as capital investment, menu, location, concept, market research, and operating systems play a significant role in the formation of a restaurant. In order to launch
an eatery successfully the owners need to have a proper plan and also have enough financial resources.

Steps for opening a new Restaurant in India

Decide the type of restaurant

There are several options when it comes to deciding on a type of restaurant. In addition to local tastes, the culinary skills of the owners can also decide the type of eatery being opened. Location also plays an important role in such cases – for example if it is a mall, the owners can start a fast food restaurant or a pizzeria.

Start up expenses for opening a new restaurant

The business plan for a new restaurant should include calculations of the start-up expenditure. This should be inclusive of the operational expenditure for the first couple of months and the money that will be needed to get the restaurant going. The projection of cash flow needs to be precise for the owners to be able to get a hang of the various financial aspects.

The requirement for money is normally based on the following aspects:
  • Type of restaurant being opened
  • Equipment- new or rented inventory
  • Nature of the facility
  • Marketing

Legalities for starting a restaurant

Before starting a restaurant the owners need to procure the necessary licenses and permits from the local organizations responsible for governance. An important example of such an authentication is the department of health services’ food establishment permit. In addition, the owners are required to get sufficient insurance coverage.

Interiors and menu

The menu of a new restaurant should be decided on the basis of local preferences. The prices have to be determined on the basis of ones being offered by competitors. An integral part of a successful restaurant is a nice interior – the owners should make it as attractive as possible before launching their operations. The furniture needs to be pleasing and the investment in this regard needs to be done after careful analysis and comparison of market prices.

Advertisement for a newly opened restaurant

Advertising a restaurant at its formative stages is an important process as it helps the owners get across the specialty of their services to a wider consumer base. Nowadays, blogging is said to be the best way to generate awareness about a restaurant. The owners can introduce the blogs in public domain through social media with timely updates about the new features or dishes being introduced at the restaurant.

They can also interact with people who post comments on the blog and discuss various issues like possible improvements to the list of dishes or changing the décor and styling of the restaurant. Good discounts are a great way to generate some much needed attention – this actually helps a restaurant in the long term.

Recruitment procedure

The owners of a restaurant need to have a well developed human resource program, which should start with information on the job description for all the employees, which will clearly state their various responsibilities and duties.

It is important to train all the employees properly as only then can they be expected to deliver properly. With proper job training, the employees will be aware of their responsibilities and know what is being expected from them.

In order to make the restaurant successful, the owners should also be able to cope with employees who take frequent leaves or are not at par with expected standards and it is very important to maintain composure when dealing with such employees. The owners should be capable of motivating such employees – in such circumstances it is considered helpful if the owners are aware of employee retention programs.

The review process or feedback

Several international brands such as McDonald, Dominos, Pizza Hut, and Subway have now established themselves in the Indian market due to their hospitality services. Each of these make it a point to offer their customers a good time with a delicious meal. Pizza Hut also has come up with this concept of ringing a bell if its customer has had a good time.

Last Updated on May 12, 2015