- 1 How to Start a Restaurant Business
- 2 Why Food Business?
- 3 The current state of the business?
- 4 Where to raise money to start the restaurant?
- 5 How much time is spent daily for this work?
- 6 To start a restaurant or food business or any business, you should take a loan or put your savings?
- 7 How much does running cost per month to run a restaurant?
- 8 Moreover, how much are your earnings from this business right now?
- 9 What to do for advertising/promotion?
- 10 Promotional Methods :
- 11 Who will hang up?
- 12 What are the formalities related to government-related matters?
- 13 What is the importance of a chef for a restaurant?
- 14 How should the waiter and rest staff be arranged?
- 15 Can a particular type of education be beneficial for coming into the Food Business?
- 16 Biggest Mistake / biggest mistake
- 17 If someone has decided that he has to open a food joint or restaurant, then what should he do?
- 18 Negative Planning:
- 19 How difficult is it to leave Job and get into the business?
- 20 Advice for those who take the Franchise:
How to Start a Restaurant Business
Friends, today I am sharing with you, “How to start a restaurant business?”. Last Tuesday, September 18, I reached Kashmiri Gate in Delhi. The reason was to know about the food business. The restaurant where were I am going to check our then I see some water outside and had a bench on my side was fixing the pipe leakage from the plumber. When seen from the front, it was found that restaurant owner Mr Saurabh Srivastava also stand there, the only person I had to meet.
When I joined Saurabh Ji, then the plumber said, “The old tube of the bicycle is needed to fix the pipe.” Moreover, I and Saurabh Ji, riding on their Honda Activa, searched for the tube that ran. Welcome to entrepreneurship An entrepreneur has to do everything. In the next two days, I spent 6-7 hours with Saurabh Ji and wanted to know, “How to Start a Restaurant Business“.
Also, I will try to get information from them in simple words to you.
Saurabh Ji is about 37 years old, and he belongs to the middle-class background. Before joining the business, he had worked as a manager in some insurance companies. On 24 January 2013, he started the restaurant business in Delhi.
Why Food Business?
Because his wife, Mrs Alka Srivastava, who teaches in a government school; From the beginning, they wanted to have their restaurant and Saurabh Ji too by nature is a foodie; Many rolls sold in his restaurant have their inventions. 🙂
Moreover, one of the primary reasons for coming into business is also that they want to build something for their two daughters who can give them financial independence.
The current state of the business?
As Saurabh Ji first started his restaurant, he has not been able to come to profit due to the absence of more footfall of new customers. Moreover, they have to spend 20 thousand rupees with their pockets to run it every month. In the month of December 2015, they have shifted their restaurant to a better marketplace, where people walking on the road are reaching out to the restaurant.
I hope it helps! Friends, I am surprised to know that their business has not yet been able to come in profit, but now on changing the location, they are quite optimistic that they will be in a good position in a few months. Moreover, because of their optimism, I also got to see When I saw Visitor’s Feedback, Rolls very much appreciated people and many people had even arrived at the new location while searching for their shop.
That means they already have many satisfied customers, need to add new ones and customers who are getting them every day from this new location. Moreover, once these numbers increase, earning 1.5 lakhs and 1.5 crores of the month can be reached.
I asked for three years to stay in the loss, how are you still?
So he gave a very straightforward answer –
“I have no options to make this business success”
I think, within which it believes that it will succeed one day.
Where to raise money to start the restaurant?
Saurabh Ji had a habit of saving from the beginning. From an early age, he had opened many mutual fund SIPs and started this business from him.
How much time is spent daily for this work?
Every morning from 10 am to 12 pm; you have to give about 14 hours. Just open on Tuesdays and Thursdays in the restaurant for the halftime.
It is the reason that Saurabh G. advises to hire a manager, otherwise, on the other hand, you will get tots of work pressure and also you will not get time for any of the parties, birthdays, parent-teachers meeting … anything and your Social life will be spoiled.
To start a restaurant or food business or any business, you should take a loan or put your savings?
First of all, you should try for a loan. You can approach the banks by creating a project. The more credit you get, the better it is because in such business the running cost is very high and there is no profit – no loss, it may take too much time to reach a goal. , Then your savings can work to stay in the game. Also, if you have received a loan and your business does not go then you can declare yourself as a bankrupt or bankrupt.
How much does running cost per month to run a restaurant?
Approx 1.5 to 2 lakh.
Let’s see the bifurcation:
Shop Rentals: 40000 per month
Salary Per Month
- 1 Cook: 15000
- 1 Helper (which has Almost Cook-like accessories: 12000
- 1 Cleaner: 5000
- Two waiters: 8000 per waiter = 16000
- 1 Delivery Boy: 8000 (To Deliver Rolls To The House)
- 1 Manager: 10000 (ten thousand only)
If your staff is outside, then you have to arrange for food and shelter.
I.e. total cost on staff: 60000 to 70000 per month
Raw materials – Vegetables, eggs, milk, cottage cheese, cylinders, chicken, spices, and so forth. 2500, i.e. 75 thousand months
Other expenses: 10000
Total Cost: 40000 + 66000 + 75000 + 10000 = 191000 per month
(All Prices are in Indian Currency)
OMG! I had never thought that it would have cost so much maybe you too did not think so. However, this is the reality.
Saurabh Ji explained that this is because the waiter’s work in our society is considered to be a small task. If you get vacancies for the manager, then 100 people will come, but if you take jobs from the waiter, then only a few people will come! I.e. the demand and supply are round the clock!
Well, one thing and when I asked that the staff is local right or outsiders (from some other city), they told the outsider more accurately – the reason that he would not disappear after making excuses every day, that the child is sick, going to a marriage It is, and so forth. Moreover, after coming to work, it does not stay too early to go home, which is right for the restaurants that run until 10-11. The local holiday to takes too much, it keeps on going too fast and also shows the bounce.
Moreover, how much are your earnings from this business right now?
Saurabh Ji told that to run the business, every month we have to pay about 20 thousand rupees in our pocket, that is, we can consider them earning approximately 1.9 lakhs.
However, here we need to understand that the potential of their earnings is very high, if the restaurant goes right, then the revenues can increase manifold.
What to do for advertising/promotion?
Saurabh Ji says about ads:
“Out of the 100, 95 are closed within six months of opening the restaurant. Advertisements are important for Survival Branding through ads will take 4-5 years for you to do without ads. The old saying is, “It looks like it sells ..” Also, if you have to show it, then you have to advertise.”
Promotional Methods :
1) Handbill/pamphlet in newspapers:
Saurabh G considers it the most cost-effective advertising method. For this, you have to print a flyer or handbill with a printing press.
- According to quality, printing can take 75-80 paise per pamphlet from 35-40 paise. Generally, people print them in tens of thousands.
- Once the pamphlet printed, you have to take them in the morning and at around 4 pm to go to a place where hawkers collect newspaper.
- Hawker charges ten to 15 rupees for sharing, i.e. per hundred pamphlet charges.
- For this work, you go yourself and put your handbill/pamphlet in front of your eyes. Otherwise, this activity can be useless.
2) By taking hoardings on good sites:
This method is also, but there are lots of money in it. It is difficult to find a suitable place in less than 25-30 thousand months. At the moment, he is not adopting this method.
3) Facebook Ads:
It is a modern way, and Saurabh Ji is getting benefit from it. They are spending $ 2 per day in it. In these aids, you are targeting your local area and are reaching out to the people.
4) By adding ads in newspapers:
It is also an expensive way. Therefore Saurabhji is not currently using it.
5) Google Adwords:
This method has not yet tried it, but now it is thinking of trying it.
6) Radio FM:
It is also a good option for reaching masses. Saurabh Ji is using it.
For this, he has bought ten slots of 6-6 seconds throughout the day, which will continue for one month. The cost incurred is 15 to 20 thousand months. You do not have to do anything differently to create AIDS, you get your ad records from one of your radio artists, and the same keeps playing.
It is also a cheap way of promotion. Time to time Saurabh Ji used it.
In this, you have to print flakes, and they have to be pressed on critical locations, such as the city’s main intersection, market, and so forth. There is no money for such places, but at the same time, there is no guarantee that the banner will be installed till tomorrow. Also note that if you are using any of your municipal property, such as electricity, and so forth., you may have to pay for it.
You may be able to print 6 to 10 rupees per square feet, and you will have to pay per banner 50-60 rupees to the banders who hang it.
Who will hang up?
The address of such obstacles will give you the flex itself. One thing to hold in mind is that the banner itself will be sent or sent to one of your men. Otherwise, the hangers will disappear by hanging around here.
If you are starting a restaurant or food joint, then you must take care of these things:
- You will require to get a license from The Food Safety and Standards Authority of India (FSSAI). There are many kinds of permits that you will have to see which will be right for you. Saurabh Ji took the license of State Level, whose fee was Rs. 2500 per annum. However, practically you may have to give up to twice the amount.
- You must take a Tax-Payer Identification Number (TIN) from your State Department of Commercial Tax. It used for processing Value Added Tax (VAT). This tax is around 12.5%.
- If your restaurant has an AC, you have to pay service tax to the government from day one. It is around 14.5%. Even if you do not have an AC, you have to pay this tax after getting a certain level of sales.
- Since you will keep people here at your work, you have to register in the Labor Department.
- You must have a commercial connection with the Electricity Department for your restaurant.
- You also have to take a connection of water from municipal corporation.
- You have to take a no objection certificate (NOC) from the Fire Department and keep a fire extinguisher in your restaurant, which you can get in two to three thousand rupees.
- For a gas cylinder, you also have to get a commercial connection from a gas agency.
Oops, You have to do all this I did not think so maybe you have not even considered, but You will have to do it!
What is the importance of a chef for a restaurant?
Cook or chef plays a significant role in the food business, many times the restaurant closes in the affair, so it is essential to manage them properly. Moreover, whoever has a helper with a chief kook should be trained so that he can handle everything in the absence of the cook. The chef Kathi Junction is offered only to Saurabh Ji.
How should the waiter and rest staff be arranged?
For this, you have to depend on your contacts. Tell people as much as possible that you want a waiter, cleaner, delivery boy. You can also contact organisations that offer workforce. Like in Gorakhpur, you can contact Parvati Services Institute.
Can a particular type of education be beneficial for coming into the Food Business?
Studying Hotel Management can prove to be very useful for this. However, this should not happen, and there is a passion for “eating” in you. You can do good even if you are interested. You can also understand the nutritional and eating habits of Youtube.
Biggest Mistake / biggest mistake
The biggest mistake happened with Saurabh Ji that when he opened Kathi Junction for the first time, he selected a wrong rented location and then put much money in his beautification. By doing so, he had a psychological pressure to continue over and perhaps for that reason, after almost two years, he was able to move to a better location.
If someone has decided that he has to open a food joint or restaurant, then what should he do?
He has to do these things:
Step 0: Decide whether you will go to fast-food or open a restaurant with proper dining. Moreover, also think about whether you will take a franchise or start your restaurant. Study the things you think about whatever you believe, meet people who are doing the same thing.
If you are thinking about the franchise, then you can visit http://www.franchiseindia.com/.
Step 1: Financial Planning or Capital Budgeting. Calculate the total amount of money you can make for your business.
There are several sources of money:
- Your FD
- Mutual funds
- Bank deposit
- Real estate
- Other savings
Before you start your business, it should be a rough idea that the total amount of money you have for the investment. Do not be over-optimistic in this exercise, count the things about which you fully confirmed.
Step 2: Make a budget allocation.
Plan what the money will cost. You can allocate budgets in some broad categories:
- Franchise Fee (If taking franchisees, Saurabh Ji took about 3.5 lakhs in this work.)
- Shop rent / turban / advance
- Shop interior – furniture, decoration, lighting, painting, and so forth.
- Kitchens, related machinery, utensils,
- Advertisement Budget
- Running cost of at least six months, it will also be a more significant amount
- Unseen expenses
- Cushion amount
At the same time, you can also estimate the fixed cast of your every month.
Fixed cost such as store rent, staff salaries and so forth. It is the cast that you will have to bear every month whether you open the shop or not. Apart from this, the expenses incurred every month will come in variable cost.
Cushion Amount: Normally you will spend 20 to 40 per cent more than you think. So you also keep part of your allocation in this head. You should try that you do not have to touch this part.
Step 3: Set Target Dates
Now, you set a date in your mind about which day you want to open the restaurant and work it accordingly.
Step 4: Execution
Now you have to do many things together every one of the entrepreneurs has to do!
- Finding the right location for a shop
- Shop name
- Decide the menu
- Recruit staff
- Shop dyeing – interior decoration
- Take furniture
- Taking utensils and machinery
- Printing related work
- To work hard
- Planning about promotions
Step 5: Inauguration
After completing all the steps of Step 4, you will be ready for the inauguration of your brand new restaurant. Here are some things to keep in mind:
- Decide the date of the opening
- Print Invitation Card
- Selecting the Chief Guest and inviting them
- Time card
- Arrange pundits and worship items
- Plan what each person will do on this day.
- and so forth
Saurabh Ji told two essential things related to the inauguration:
- Never keep the commencement around such a time when there is a VIP movement in the city. On the very next day of the opening his restaurant, many meetings had been blocked due to the rally of Narendra Modi, and Saurabh Ji was unable to do many injuries.
- When Saurabh Ji did not have the first order, he was not prepared that what would be the process of taking orders and sending it to the kitchen. Be sure to keep this time while opening.
Please drill a mock together with your staff to see how the chief guest will come, who will welcome them, who will be on the reception, how to order, and all the things that can happen on that day. Do a role play kind of activity. It will save you from the embarrassment that took place on the inauguration.
However, Saurabh Ji did not make such a plan himself, but he advises that even before starting a business, a contrary plan should also be done. Meaning if our venture gets flop business fails what to do in that case.
Some of the terms and conditions related to the failure can include wherever you have legal issues. like
- In case of failure, you can be conditioned to return full fees or a large part of the franchise.
- If you are also unsuccessful with the store owner, you can have a condition of withdrawing advance.
How difficult is it to leave Job and get into the business?
It is quite challenging. You have to change your mindset your thought-process a lot. Where you have limited responsibilities in the office and after one time you can feel free yourself, there is always something in the business – you have to do fifty things, do not give the family time Finds physical and harassment and tension too. In the first few years, it all starts to happen, but after all, everything will be smoothed.
Your advice for new entrants:
Those who are trying to work in this business, it is the advice of Saurabhji that the location should be selected correctly and if there is a right place to own property then start the restaurant there. By doing so, the chances of success will increase by 50%.
Some other important things:
During this talk, Saurabh Ji told some more important things that any entrepreneur who came to the food business should know:
- Make much balance with the staff, do not be too strict or too soft.
- When the volume increases in the food business, the profit comes only, so try to reach more and more people. Every customer is essential, behave well with everyone, develop a pleasant personality. 10. Get as much benefit as you can with a satisfied customer. You can do more harm than an unsatisfied customer alone.
- A “Today’s Special Board” should be set in the restaurant. Usually, whatever you write on it sells more. That is, “what he writes sells.”
- Keeping the vendors you have fined for everyday items, cross-check their rates in the middle of the market, or you can be cheated.
- Put a habit of controlling cost at every stage. If you do not pay attention to it, then it will run very fast. Do not take anything from anywhere, move around in the market and find out the best cost-effective option, whether you are taking vegetables or furniture.
- Do not compromise with quality, it takes time to make a customer but not to break it. As far as possible eat the raw material of drinking water itself. If the baggage is correct, quality maintenance can be done.
- Keep a record of even small expenses. Only then will you know how much it felt and how much it got.
Advice for those who take the Franchise:
You can negotiate at the level of each. At the behest of the franchise, Saurabh Ji started spending a lot on the look and feel of his restaurant but could avoid it. You can also change the terms and conditions of revenues sharing. I.e. franchisees are flexible, and you can do some things in your fever by chatting. Try it for yourself.
Friends, this post is probably my longest post ever (4000+ words), and if you’ve been reading and reading here, first of all, thank you for giving me your precious time. At the same time, I thank Saurabh Ji for many thanks to all the readers of AKC and all the best wishes.
Naturally, if you are interested in the restaurant business, then you may have more questions related to it. Please tell us through your question comments so that Saurabh or any other experienced entrepreneurs can answer your questions.
Moreover, in the end, one more thing is to say that the ideas shared in this post based on the experience of a person and the rates mentioned are according to the market of Gorakhpur. So when you start this work open-minded Stay and face whatever challenges come in, let’s grow if you have a seed of entrepreneurship in your life, and show yourself a successful entrepreneur by yourself.
A request: If you get help from this article, “How to start a Restaurant Business“, in becoming an entrepreneur, then by email or firstname.lastname@example.org, we will tell you. Moreover, if you know someone who is thinking of going to food business or any other business, then he will about this post.