Tag: Restaurant business plan

Categories
Strategy

Thinking of Ways To Grow Your Restaurant Business? Here Are 4 Tricks That Can Help You Boost Your Business

Restaurant Business (Photo Credits: Pexels)

If have you already started a restaurant and looking for growing the business, we’ve got you covered! Amid the COVID-19 pandemic, when the businesses are returning to normalcy, it might be time to sit down and draw up a plan to open your own business. Being the owner of a restaurant, big or small, you’ve likely asked yourself the question of how you can flourish the business. There are several components which goes into a profitable food business.To help you create an idea for success, we’ve put together a how to get you going to make sure you have all the things for a successful restaurant business with ease confidence.

Work on the Location

The first thing that you should keep in mind your restaurant will be known to people depending how accessible it is to them. You need to ask yourself how far it will be for people to reach the restaurant.  If the hotel is in the market area, it obviously has a lot of footfall unlike the ones that are in the interior parts. Of course, you need a location that fits within your budget too. For a restaurant, location is everything. You need a place that draws the attention of the crowds.

Announce Offers/ Rewards

People always look up to offers and are easily carried away by discounts. To attract customers to your restaurants, you can simply offer a discount, free drink, or some other offer like 30% or 50% off on selected dishes if people sign up and do the reservations. You can also reward them on a points-based system and can offer discounts when they complete a certain number of points.

Offer Free Wifi to Customers

In this digital era, people always want to be connected to the internet. They want to surf and watch movies or series or maybe listen to their favourite tracks while sipping on that coffee or eating their favourite dish. Most people click pictures and upload it on social media, for which obviously, they need internet, and if it a high speed one, nothing like it. Your restaurant will become their favourite place, especially for the teenagers.

Keep Marketing & make your social media game strong

The simple way to keep your customers engaged is to let them know about your offers and anything new that you plan to come up with. If you engage customers using social media, mobile apps, you’ll be able to reach your best customers. You need to keep your marketing efforts going to ensure that you are always in the minds of your customers whenever they think of dining. You need to establish a strong social media presence and try and announce offers on your Facebook Page and Instagram page with promo codes to keep your restaurant on the top of the list.

 

Categories
Business motivation

Restaurant Startup: Does it Really Burn A Hole In Your Pocket?

Aspiring restaurateurs are often faced with the question as to how much it really costs to open a restaurant. The question is very important because fulfilling your passion for owning a restaurant does involve some serious money which depends on basically your location and the scale of the restaurant. 

This article is going to revolve around the various costs and expenses that you may face while trying to set up your dream restaurant. Costs that vary from renting a place/buying a place to paying the salary of the staff. If opening a restaurant business has been on the cards, then this guide to calculate your expenses will prove to be a godsend for your business.

Let’s Talk Money

How much do you think the average cost of opening and setting up a restaurant is? Can’t figure it out? Let’s bifurcate it together and proceed step by step.

Owning/Renting A Place

The most difficult part is to finalize the locality where you would want to set up your restaurant. Then comes the size of the restaurant which will have you decide if it is going to be a cozy, small, and casual setup, or is it destined to be a high-end posh restaurant. These two factors will affect your finances hugely. The better the area, the costlier the place. Doesn’t matter if you have a generous budget or a stretched one, there is always a place that you can find accordingly. If you are thinking of renting a place, the average cost would be somewhere between Rs 30,000 – Rs 1,00,000. However, if you are looking to buy out a place, you will have to spend a much higher amount that will vary from Rs 50 lacs to Rs 1 cr.

The Cost Of Acquiring Licenses

The most tedious task and equally time-consuming task is to get all the necessary permits and licenses to run a restaurant business without any hassles. You will be required to have a

FSSAI License: It will cost you around  7500/- for the central license and Rs. 2000- Rs.5000 for the state license. 

Health/Trade license: This license will cost you Rs. 500 – Rs. 50,000 depending on the requirements of your restaurant.

Eating house license: On average Rs. 300 will be the cost to get it and it’s valid for three years.

Shop and Establishment License: The cost ranges from Rs. 200 to Rs. 4,000 per year. The number of employees and the location of the restaurant plays a big role in this license.

Music License: The annual fees range between Rs. 3,500 – Rs. 10,000. This license is issued by the Phonographic Performance Limited (PPL).

Operational Costs And Staffing Costs

You will always want your restaurant to run as smoothly as possible without any glitches. However, to ensure that you need to get good quality equipment for your kitchen so that the operations are never halted due to the quality of the equipment such as grills, stove, mixers, etc. The appliances would cost you an average of 5 Lcs. Also, the staff you intend to hire to run your restaurant will take up to 20-30% of the total revenue you generate.

Raw Material Costs

Please keep it in mind that the salary of your staff and the raw materials costs are recurring expenses, The raw materials will cost you around 30-40% of the total revenue that your restaurant generates. Getting good quality and fresh material will cost you even higher, hence, plan accordingly.

Marketing and Maintenance

If you do not market your business in the best possible manner, you will cost it its potential customers. If you have built something for a particular type of audience or crowd, it becomes your duty to let the prospect know that you are open to business. Depending on how much and what way you promote your business, the cost will vary.

We hope this gives you a clear idea of how much it actually costs to build a restaurant from scratch. It is important to know that there will always be some random expenses that will raise their heads occasionally and you need to be prepared. Nonetheless, based on the above details, we wish you luck chalking out your business plan. 

Categories
Startup

Checklist for Your Dream Restaurant!

If you are planning to get into the food business in India, you should start by acknowledging major factors like time, efforts required, and of course, the capital and the market research. Above these, you have so many options for you to enter into the food and restaurant business.

Beyond these, you have so many options for you to inscribe into the food and restaurant business. Simply start preparing the checklist of the requirements and the resources needed for any restaurant idea to go on the floor. Once you make your mind to get into this business, you require to keep a close eye on the next basic steps.

Let’s have a look at the top 4 steps required to be on the top list of your checklist.

Legal requirements
Any commercial enterprise, first and foremost, requires to have legal documentation. For opening restaurants, you need to take in the right knowledge regarding the licenses you need. For opening restaurants, you need to get permission from the local bodies and a license for the area where you want to set up your restaurant.

Along with this, you need to have an FSSAI license for making food safer for the customers, a GST registration, and a business registration to file the ITRs.

Cost to Evaluation
While setting up a restaurant, you need to look at the cost as it is a major factor when it comes to opening a restaurant. These costs are to be further divided into food costs where you need to make an inventory of raw material daily.

Another most significant factor for evaluating cost is infrastructure costs, this is one time during or periodical an investment like rent, interiors, kitchen equipment, and engineering cost.

Fixing Technology Requirements

Technology is your best friend in this fast-paced world. When you open a restaurant, you will need some or the other kind of software which will facilitate you to ease your operations and management process. Careful investment in technology will help you add meaningful value to your job.

Technology not just helps to manage or operate a business; it also helps you connect with your customers in the best possible ways. Therefore, make technology the most significant factor to work on while building your restaurant.


Marketing is important

To gain traction for your restaurant, online or offline, you need your marketing and promotion game stronger than ever as it will bring cash flow in your business. Invest your hard work in marketing your restaurant and menu in the best possible way.

In terms of digital promotion, you need to register your business with all websites where you can attract your customer. This will not only increase visibility but also will give an option to your customers to order online. Don’t forget to be your most active self on social media and run as many campaigns as possible. When you think about offline promotions, you need to have posters and pamphlets with some attractive offers and discounts on them.

When moving forward with any business, you need to have a checklist that could facilitate you to ease out this mammoth of a task. We hope after reading this article, you can be one step closer to your dream restaurant. Start creating a checklist to give wings to dream restaurant.

 

 

 

 

 

 

Categories
Startup

Cloud Kitchen the New Saviour for Restaurant Business

Ordering food online is the new big thing entirely due to COVID-19 and several lockdowns that have kept restaurants closed and affected business too. But the takeaway meal scenario is at an all-time high, and we believe that people’s interest in ordering food is going to stay with us for long.

As per NRAI reports, over 500,000 restaurants and around 20 Lakh people employed in this sector are likely to lose business due to a pause in the restaurant business. Due to this global pandemic, people are holding on their distance from the restaurants and are now drawn towards cloud kitchen ordering facilities that cater to online delivery.

Here are the factors which make Cloud Kitchens a silver lining in the dark skies of a pandemic-

Delivery is faster
As per reports, restaurants are facing all-time lows and sales are down by 90%. Therefore, the takeaway option has become a vital source of income for the business.
Research has been conducted by the Red Seer company, according to which, the number of orders increased by 60%. Therefore, the Cloud kitchen comes as a rescue as it works best in such a scenario.

Reduction of Operational Cost
While running a restaurant, operational cost is one of the toughest factors in terms of managing a business, and in the current scenario, it’s tougher to achieve.
Cloud kitchen came to be known as a great aid in minimizing the cost of operation in terms of rent and staff. This leads to a higher number of opportunities, low investments, and chances to experiment and scale.
Cloud kitchens don’t just help in maintaining social distancing, but also turn the operational cost in half.

Technology And Food Are Becoming Friends
The advanced technology and love for food are leading to the high growth of the Indian food tech industry. Digital menus, QR code scanners, and app orders have given a new definition to the dining culture.
This not only guarantees social distancing but also assures end to end contactless dining experience in the current situation.

Chance to Bounce Back
Due to this pandemic, many small restaurants and cafes are getting closed. With the help of Cloud Kitchen, they can re-open themselves and receive a steady income.
It also allows these restaurant owners to cater to an increased delivery demand and experiment with the menu levelling up in the acting field.

New Home Dining Experience
Thanks to the huge pandemic, which has transformed people’s approach towards dining out, normal dining out now looks like this – Pre-reservation of tables, sanitizer bottle on the mesa, and servers wearing PPE kits. However, still many are trying to stay away from going out for dining.
A bunch of restaurants has come up with the idea of sending the chefs to homes with the necessary ingredients for experiencing home dining or from 5-star hotels, sending full course meals delivered at homes with the help of a cloud kitchen.

Saying bye-bye to dining out is hard, but in the current scenario, your safety should be your priority. The customer has shifted from dining out to dine-in, which is making people choose a safer alternative like a cloud kitchen. So, if you are a restaurant owner or planning to open one, Cloud Kitchen will help you in stabilizing your business.