How to start a small restaurant/Dhaba or Food stall in India ?

How to start a small restaurant /Dhaba  or Food stall in ?

restaurant /Dhaba  or Food stall is mainly recognized for taste and price. However, even if the taste or price is not good, your Dhaba/Restaurent can still walk but cannot move forward . For your information, I would like to tell that 90 out of 100 restaurants are closed within just 6 months. start a small restaurant

Among these reasons,

  • food quality,
  • Rate / Price
  • Wrong place are chosen.

there are two types of restaurants,

Restaurants/Food stalls targeting the local area are mostly in the middle of the market

 The restaurants targeting the traveling people or drivers etc. are stationed away from the city on the side of a highway. Also known as line hotels/Dhaba.

How much money will be required to open a restaurant in India ?

The cost will be according to the size of your restaurant, ie

if you want to open a big restaurant, then you will need around 10 lakh but

 if you want to open a medium size restaurant, then you have to spend around 1 lakh to 3 lakh.

In which you

  • Shop expenses (much better if own)
  • Staff expenses
  • row material (vegetable, flour, eggs, milk, cheese, chicken, gas, electricity etc.)          

Suppose you have rented a shop/Food stall at Prime location

  • Shop Rent-30000
  • Staff expenses- 50000 (approx.)
  • Row material – 70000 (approx)
  • Other expenses – 10000
  • Total – Rs 160000

However if you want to do this business in small level then it may cost less.The above expenses do not include the license and registration expenses. Click here to know more about license and registration.

Choice of place

Most important factor, it is very important to choose the right place for a restaurant/ dhaba or food stall. Often I have seen new restaurants opening and closing due to being in the wrong place or shifting to another place. First of all, you have to decide which type of restaurant you want to use. If you target Traveling customers then you have to do this business on the side of a

  • traffic highway,
  • railway station,
  • Bus depots. Hospital Etc..

And if you target local public, then it would be appropriate to open a restaurant at any place in the city where a lot of people come.

  • Nearby school or collage
  • Near Corporate Hub
  • Residential area …etc

How much can this business benefit?

By the way, the larger the business, the higher the expenses. But earnings are also higher. To run this business, you have to deduct 20 percent of the cost every month after deducting all expenses. However, it can be more or less.

                             According to this, if you earn 1 lakh every month, then your profit will be around 60 thousand. But this is just the estimated earnings. Some restaurant operators say that once the restaurant is run properly, the earnings can increase several times.

Important License and Registration

Since it is a food-based business, fssai (in india) is required , although there are many restaurants and dhabas in India that are operating without a license, but if anyone want to do this work for a long time and without any hindrance then Take the necessary paperwork for your business.

What are the things to be considered for starting this business?

First of all, you should plan your budget, where you said and how much you have to spend i.e.

  • Store Rent
  • Restaurant utilities
  • Kitchen items
  • Lightning
  • Water supply
  • Salary
  • Have to spend on etc.

Take care of important things to open a restaurant.

  • Location is very important for this business. Choosing a good place for a restaurant is very profitable.
  • A good restaurant is popular by the taste and price of its dishes, so you can hire a master chef for better taste. And fix the price according to the market and your budget
  • So, Always keep an eye on the market, so that the idea of  innovating in the business continues.
  • Try to reach as many people as possible so that profit increases.
  • Treat the staff working in the restaurant with no strictness or no leniency.
  • Never inaugurate a restaurant on a day when there is a government holiday or a festival, but rather on the day when there is a rave atmosphere in the market so that more and more people know that there is a restaurant here too.

Also Read : How to start cleaning business in India

Leave a Reply

Your email address will not be published. Required fields are marked *