How to start a restaurant or café as a startup complete layout

1. How to Start a Restaurant or Café
as a Startup Complete layout
From Startup Scratch
9971504105
Startupscratch@gmail.com

2. Deciding the Concept of the Restaurant Business

3. Investment Needed to Start a Restaurant Business
• Lack of funds and is one of the most important parts to consider when you think
of how to start a restaurant. Following is the investment required to start up
different types of restaurant. There are three ways you can raise money for your
restaurant dream.
• 1. Self-funding- If you have enough money in the bank, then congrats, you have
crossed the first hurdle of opening a restaurant. It is also a good idea to open a
restaurant in partnerships, as it reduces the risks of investment.
• 2. Loan- You can take a loan to fulfil your restaurant dream. However, securing a
loan from a bank may include hassles as they look for collateral or someone who
can underwrite the loan.
• 3. VC/Angel funding- Getting investors on board can be difficult, especially if
yours is a first-time venture. Investors usually look for your restaurant venture’s
growth potential, quality, and the scalability of your model. The performance of
your first few outlets is considered before investing.

4. Restaurant Costs Involved in Running a Restaurant
Business
• Food Costs- Food cost is the cost of all the raw materials used in preparing a dish. Ideally, the food cost
should be around 30-40% of your menu price.
• Overhead Costs– Overhead costs are the other expenses that are not related to food or labour. These
include-
• Rent- The rent covers a major part of your restaurant costs, and is heavily affected by the location of the
place. However, the rent should never exceed 10% of your total revenues.
• Interiors- You can decide on the interior of the place based on your restaurant concept and theme, and your
budget.
• Kitchen equipment- Purchasing good quality equipment may seem like heavy on the pockets, but they
always recover their costs in the long run.
• License- Restaurant licenses are an important expense of your restaurant, and cannot be ignored. Based on
your establishment type, the license fee varies. We have covered the topic of restaurant license in detail
below.
• POS- The new age, modern technology POS can smoothen your restaurant operations like never before. The
price of POS depends on its features and functionalities, that should be chosen on the basis of your
restaurant needs. We have covered the topic of POS below in detail.
• Marketing- You should ideally spend 1-2% of your revenues on marketing your restaurant.

5. Deciding the Location for the Restaurant
location is an important factor to consider while discussing how to start a restaurant business, as it can
determine the success of your restaurant.
• Visibility and accessibility- The restaurant should be located at a
place where it is easily visible as well as accessible. Upper floor
locations are generally not considered good as their visibility is low,
and customers also find them difficult to locate. A restaurant right in
the front and at the ground floor has higher footfalls.

6. Licenses Needed to Start a Restaurant Business
• Business Registration(Pvt Limited)
• Trade license from the municipal corporation
• FSSAI
• GST Registration
• Shops and Establishment License
• Fire NOC
• Liquor License

7. Manpower Needed to Start a Restaurant Business
• There are basically three types of staff required in your restaurant-
• Kitchen staff- Your kitchen staff comprises of the cooks, food
preparation staff, support staff etc. This is mostly unskilled labour.
• Service staff- The waiters, housekeeping staff, busboys etc are your
service staff. Since they have to interact with customers, they need to
be good in communication, and etiquette trained.
• Management staff- Your restaurant’s manager, chef, cashier, store
manager etc comprise the management staff, and they need to be
educated as well as experienced.

8. Other Factors to consider:
• Designing the Menu
• Supplier and Vendor Management
• Technology Needed to Start a Restaurant Business

9. Thanks
• From Startup Scratch
• 9971504105
• Startupscratch@gmail.com