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How to start a restaurant in India

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23-Apr-2010
Eduman
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The Indian restaurant market is one of the fastest-growing markets in the world. The food industry of India noticed a growth in demand every year. Nowadays, many young entrepreneurs are into the project of starting a restaurant. So do you want to open a Food restaurant, but are not sure how to start a restaurant in India, don’t worry here, in this article, you will get to know how to start a restaurant in India, easily.        

Starting a new restaurant and the most important running a successful one is not an easy task. There are a thousand types of restaurants already running in the market, and you are going to start your new one, have you thought, will it be able to stand out from those restaurants that are already successful in the market.

How to open a restaurant in India?

Here is a full guide on starting a restaurant in India (How to start a restaurant in India);

Step 1: Decide the idea of your Restaurant

The first thing you need to consider whilst starting a restaurant business is deciding the concept of your restaurant.

You can decide the type of food joints like

  1. Resto
  2. Bars
  3. cafes
  4. Bakeries
  5. Food carts/trucks etc.

 After deciding the type and concept of the restaurant food, it is necessary to calculate the average price per customer that means the amount a customer would spend on the restaurant.

Step 2: Evaluate the cost & Operational expenses

Before starting your restaurant business, you need to have a good idea of operational and set up costs. If you have a better idea it will lead to favorable outcomes. Below are the noteworthy costs involved in starting a restaurant business:

Food cost

It is the cost of all the raw materials used in preparing a dish. You need to connect with some well-known suppliers to lower the cost and to make sure of a constant supply of food materials.

Labor cost

It is the second most essential restaurant cost sum up to the expenditure while opening a restaurant.

Overhead cost

Overhead costs are costs that are not related to food or labor. An overhead cost includes rent of premises, kitchen equipment, licenses, etc.

Step 3: Licenses required to open a restaurant in India

(What licenses are needed to start a restaurant)

For running your restaurant business successfully, these are the required restaurant license;  

  1. Shop and establishment license 
  2. Food License
  3. GST Registration
  4. Trade License
  5. Liquor License

FSSAI LICENSE

(FSSAI guidelines)

The FSSAI food license for restaurant acts as proof and permission for any place or shop dealing in food to be a legal manufacturer and distributor of cooked and processed foods which are to be sold commercially to the masses. So for starting your restaurant you need to get an FSSAI food license in India.

Documents required for FSSAI License

  1. Aadhar Card
  2. Address proof in form of utility bills
  3. Email Address
  4. Mobile Number
  5. List of food items and category
  6. No Objection Certificate (NOC) from the owner

Types of Food License

  1. Basic License
  2. State License
  3. Central License
FSSAI LICENSE       TURNOVER CRITERIA
Basic License       Up to 12 lakh
Central LicenseGreater than 20 crores
State LicenseUp to 20 crores

Applicable Charges - 2499/-

The Team TAX ADVISORY will provide you with a basic food license in just 2499/-. This Package includes below-mentioned facilities:

  1. 3 years validity of food license.
  2. Preparation of FORM-A
  3. All FSSAI license government fees.
  4. Delivery of FSSAI LICENSE at your doorstep.
  5. Preparation of declaration signed by you.

If you want to register for a food license having 5-years validity, then you need to pay Rs 5499. By paying this, you can obtain an FSSAI license of 5 years validity.

GST Registration

GST registration is mandatory for you if your annual turnover is exceeding Rs. 40 lakhs or you are an e-commerce trader and making interstate supplies.

If these conditions are applicable on you, you can freely contact Tax Advisory for GST Registration.

Documents Required for GST Registration

The Basic documents required for the GST Registration in India are as follows:

  1. Registration proof of restaurant business;
  2. Address Proof;
  3. Identity proof of the restaurant owner;
  4. Address proof of the restaurant Owner;
  5. Details of the business’s Current Bank Account;
  6. PAN Card;
  7. Rent Agreement or Lease Agreement.

Shop and Establishment Registration

Gumasta license or shop & establishment license is a registration certificate required to undertake any kind of business in India. It acts as proof of legal entity.

Documents required for Shop License

The Basic documents required for the Shop and Establishment Registration in India are as follows:

  1. PAN Card (Owner)
  2. Identity proof (Owner)
  3. Address proof of the restaurant Owner;
  4. Details of the Employees Employed;
  5. Postcard photograph of the restaurant;
  6. Address Proof of restaurant.

Trade license

Trade license will depend upon the size of the restaurant; the cost incurred is from Rs. 10000 to Rs. 100000. The licenses are issued for a financial year and need to be renewed in the month of March every year. Trade license has to be issued by the respective state’s Municipal Corporation.

Liquor License

If your restaurant serves both liquor and food, then you need to obtain a liquor license from the state’s local excise commission. Liquor licenses can be downloaded from government websites.

Step 4: Recruit the Labor Force

Labor forces are the strength of any business and hiring the right manpower is one of the biggest challenges. In the restaurant, the required labor forces are chefs, waiters, executives, and service staff, etc.

Step 5: Plan the Food menu

A restaurant’s main product is its food. It can make your business or break your business so it is necessary to carefully design your food menu.

Step 6: Advertising and Marketing

To get recognition in the market applying an effective advertising and marketing strategy is needed. It can be done by distributing pamphlets in the newspaper mentioning discounts and coupons and other offers.

Key Elements of a Successful Restaurant

The prosperity of your restaurant depends upon doing a few things well.

Food

The biggest operator of a restaurant's food business is a menu that makes customers’ mouths watery. Tasty food with unique presentation and hygienic food attract customers.

Customer service

If you offer great customer service, it just not only makes a one-time customer to regular customers, it also adds up more customers when regular customers spread the word.

So, therefore you need to focus on offering amazing customer service and your staff plays a vital role here.

Marketing 

If you have a well-planned marketing strategy, it will separate your business from others when you make creative ads, customers notice it and remember your business every time.

How tax advisory will help you?

Choosing type of business license

Tax advisory will guide you throughout in selecting the right business license type for your specific business needs.

Provide Information & Documents

Our experts of the team will work with you to make everything easy and simple, for this, you just need to provide some basic information and documents.

Quality Check

Our team will conduct a robust quality check on all information provided.

File for Licenses

Our members of the team will prepare & file for your business licenses with appropriate government agencies.

Receive business license approval

Now your restaurant is in compliance with the law.

Conclusion

By summing up with Tax Advisory, for how to start a restaurant in India, you need to fulfill all legal requirements mentioned in this article. For all legal formalities like Food License, GST Registration, and Shop and establishment license, etc, you can contact TAX ADVISORY at any time without any hesitation. The team Tax Advisory is always ready for your assistance.

Why choose us?

Tax advisory is one of the best Indian legal and financial advising companies in India. Our team of experts includes CA’s, CS, MBA, and other professionals. We have the best team who has a wide experience in their respective field. Just call/WhatsApp or mail us your documents and the rest we will handle for you. 

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