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How To Start A Restaurant Business In India In 2021?

The restaurant industry is a promising and fastest growing industry in the business world. More and more people dinning outside due to various reasons such as growing wages, increase in urbanization, rising populations and technical advancements. If you are aspiring to start your own restaurant in India then it is never too late to plunge into this lucrative realm. However, it is always easier said than done, you need meticulous planning, execution, realistic goals and adequate funds. If you want to run a successful restaurant business then you are in the right page. This blog will help you learn how to start a restaurant business in India.

How to start your own restaurant and make it a success

Identify the pitfalls to be avoided

It is very important to identify the pitfalls that you need to avoid if you want to run your restaurant business successfully. The pitfalls new restaurateurs should avoid are:

· Managing your business part time

· Not looking for profits

· Not hiring the best employees

· Compromising on food quality and hygiene

· Failing to connect with customers

· Not keep a track of accounting and operational practices

Choose the concept for your restaurant business

It is important to conceptualize the model of your restaurant and it mainly depends on market potential, cuisine, your budget and aptitude. Higher the investment, higher the profits. However, if you are a new restaurateur, starting a small restaurant or a fast food business would be much safer.

Precisely evaluate all the costs involved in restaurant business

The costs involved in a restaurant business are important part of running it successfully and hence required to be evaluated and planned smartly. Below are mentioned the various costs that you need to check before starting a restaurant business:

· Food Costs

· Labor Costs

· Overhead Costs– Apart from food and labour expenses, there are overhead costs and these include:

(a) Rent

(b) Interiors

(c) Kitchen equipment

(d) License

(e) POS

(f) Marketing

Seek advice from consultants and chefs while creating the menu

The menu is one of the most crucial aspects of your business. It will determine the ingredients, equipment that your kitchen will require and the production plan. Though it seems quite easy to create a menu for restaurant, it needs expert’s help. It is highly recommended for the new restaurateurs to seek help from an experienced food consultant. You should also look for experienced chef and bring them onboard.

You should choose the right location for your restaurant

Planning to open a restaurant then you should consider looking into an area where there is a high demand for restaurants. Your target audience should also be a large portion of the population. Conduct a thorough research of the landscape and the nearby areas- What is the locality’s food preference? Do people frequently visit the area? Is it safe? Are there any other attractive shops near your restaurant?

Get connected with equipment and ingredient vendors

Before you purchase equipment, make an estimate of your daily production capacity. You should buy equipment based on your production. For equipment like oven, display counters, it is always better to purchase new ones from a reliable brand. Other equipment including kitchen table, racks and burners, you can purchase in used condition if you want to save money. You will need ingredients, vegetables and other food items regularly for your restaurant. Therefore, it would be best for you to connect with the local wholesalers or you can also avail all your required things from online services.

Avail all the required licenses and approvals

The licenses and approvals required to start a restaurant business differ from state to state based on regulations. It would be best for you to consult a local agent who is aware of the regional regulations and can help you to get all the licenses required for your business.


The plan of starting a restaurant business in India sounds excellent. But, starting your own restaurant from scratch and running it successfully is quite a difficult task. Considering the above-given points, we are sure that aspiring restaurateurs would be able to learn about how to start a restaurant business in India.