Food is an art that unites people from different sections of society. As the saying goes, a full tummy means a happy mind. Similarly, a lot of us dream of starting our own restaurant and contributing to this generous distribution of happiness. South Indian cuisine, specifically, has its own unique, cultural charm with a niche, yet diverse, customer base. In order to cater to this, it is vital to keep in mind the demands to be fulfilled.
How to Build a Good South Indian Restaurant:
Here’s a step-by-step guide on south indian restaurant business plan-
Location and Decor:
The success of a restaurant depends widely on its location. It needs to be accessible to customers, in plain sight and especially nearer to your niche customers. This will also depend widely on the money required to be in possession of the area. Following closely on its heels is the look of the restaurant. A South Indian Restaurant could have banana leaves as table mats or an open-air dosa stove.
Also Read: Best Tax Saving Practice For Restaurants
Arrange Capital:
Most restaurateurs fail at bringing their dreams to life due to a lack of funds. There are several schemes available now that aid you dreamers. There are several schemes for business loans provided by the government for the growth of medium, small and micro enterprises (MSME). Another such method is the Prime Minister’s Rojgar Yojana (PMRY) loan. Under these schemes, Indifi offers a wide range of financial solutions. Short term business loans from Indifi don’t underwrite loans with collateral. These loans are given based on your business transactions, enabling you to grow and expand.
Evaluate Costs:
A restaurant business requires a constant inflow of money, subject to sudden changes as and when required. You will need a team of staff, resources, and vendors, food and overhead costs, marketing, etc. These may change according to seasonal demand, such as during Onam there may be an increase in a rush. Line of credit, or overdraft facility, from Indifi, offers businesses a regular cash inflow. Restaurants cannot have a fixed capital. It will always be subject to change, based on the demand of the market at a period of time. Investing in the latest technology is also very strongly suggested for efficiency, cost management and low wastage of resources.
Also Read: 5 Tips For Running A Good Chinese Restaurant
Stellar Menu:
No restaurant planning can be complete without deciding on a sumptuous menu. You have to be unique if you have to make it big. Many restaurants make a big mistake of not focusing enough on the quality or variety of food made available in comparison to the décor. You have to strike a balance. Do you want to be a vegetarian South Indian restaurant or do you want to also serve the meat lovers? Do you want the regulars on the menu such as Dosa, Idli, and Upma or do you want to also have Chicken Chettinad and Jeera Idli, unique, South Indian delicacies?
Restaurant Licenses:
To operate a restaurant business in India, it’s imperative to secure several licenses from the government. The associated costs vary depending on the size and scale of your venture. It is strongly recommended to initiate the application process for these licenses well in advance, considering the considerable time they may take for approval. Here’s a breakdown of the key licenses essential for launching and maintaining a restaurant in India:
Trade License from the Municipal Corporation:
- Cost: Rs 10,000 to 1 lakh, depending on the restaurant’s size.
- Actual license fee: Rs 5000 to 10,000 for smaller establishments.
- Validity: Issued for a financial year, requiring renewal annually in March.
FSSAI License:
- Issued by the Food Safety and Standards Authority of India (FSSAI).
- Cost: Rs 5000 to 10,000, contingent on factors like venture size, turnover, capacity, and location.
- Comprehensive guidance on FSSAI Registration can be found in this helpful guide.
GST Registration:
- Mandatory for restaurants; each state requires separate registration if outlets are in multiple states.
- Learn more about GST Registration for Restaurants to ensure compliance.
Professional Tax License:
- Required for employing salaried staff, with monthly payments applicable to those earning above Rs 10,000.
Liquor License:
- The most intricate and costly license to obtain.
- Timely application is advised, as the process is time-consuming.
Business Registration:
- Essential for establishing your business as a partnership firm or a Private Limited company.
- Involves annual return filings, financial audits, etc.
- Consider hiring a Chartered Accountant (CA) to navigate the economic aspects of your business effectively.
By proactively securing these licenses, you not only adhere to regulatory requirements but also ensure the smooth and legal operation of your restaurant. Engaging professionals, like CAs, can further streamline the financial aspects, contributing to the success and longevity of your business.
Also Read: Consider 5 Easy Tips To Maintain Your Restaurant Business
Marketing:
A good advertisement can make the worst businesses have the biggest revenue turnover they can imagine. Marketing your business is mandatory if you want to gain any popularity. Save some of your capital in advertising, it will bring a lot of fortune for you.
Apply Finance For Restaurant Business
Need of Right Technology
The realm of restaurant technology is frequently overlooked in the management and operation of a dining establishment, yet it stands as a cornerstone of utmost importance.
The advent of contemporary technology has ushered in a sophisticated Point of Sale (POS) system equipped with integrated features, significantly streamlining various facets of restaurant operations. Tailored technological solutions cater to the unique needs of diverse restaurant types.
Explore a comprehensive guide on selecting the ideal POS system for your restaurant by referring to this detailed resource.
Conclusion
These are some of the guidelines that will ensure you have a good restaurant business. Indifi is a market leader, providing financial solutions for your dream businesses. They take your applications to multiple lenders and provide a safe and secure manner in which you can acquire a loan. You can also increase your funds by availing a Merchant Cash Advance loan from Indifi. The solution to restaurant business finances is none other than, Indifi. What are you waiting for? Apply for a loan today!
FAQs
Is the South Indian food business profitable?
Investing in a South Indian food franchise is a smart choice because it comes with a business plan that’s already successful. This reduces the risks of starting a new business since the franchise provides recipes, operations, and marketing strategies that have been proven to work.
How much does it cost to open a restaurant in India?
The cost of opening a restaurant in India depends on the type, size, and location of the restaurant. Usually, you can expect to spend between Rs. 5 lakhs to Rs. 10 lakhs on things like equipment, furniture, and other start-up expenses.