restaurant business plan in kerala

How to Write a Restaurant Business Plan (+ Examples)

Learn how to create a restaurant business plan with the best format that outlines your concept, and financials. Get examples and templates to get started.

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Short answer

What is a business plan for a restaurant?

A business plan for a restaurant is a document that outlines the restaurant's concept, strategies, and financial forecasts. It serves as a roadmap for launching and growing the establishment successfully.

Don't just focus on profit margins, ensure your business plan is well-presented

In the competitive world of the restaurant industry, where low-profit margins are a well-known hurdle, there emerges a critical, yet often overlooked, factor pivotal to success: the design of the business plan.

As we enter 2024, it's becoming increasingly clear that the traditional overlook of business plan design can no longer be afforded.

This isn't just about financial projections or market analysis; it's about crafting a blueprint that encapsulates the essence of your restaurant, compellingly communicates its value, and sets a solid foundation for growth.

By focusing on the design of your business plan, you stand to gain not just the attention of potential investors but also a clearer roadmap to navigate the challenges ahead.

What makes an effective business plan?

Embarking on the restaurant business journey requires more than just a passion for food-it demands a comprehensive plan that lays out every aspect of your venture with precision and foresight.

Let's delve into what constitutes an effective restaurant business plan, ensuring it's not just another document, but a roadmap to success.

6 key components of a winning restaurant business plan:

1. Vision and concept clarity

Start with a crystal-clear articulation of your restaurant's concept. Whether it's a cozy vegan cafe or a high-end steakhouse, the essence of your establishment should leap off the page.

This clarity helps potential investors and partners instantly grasp what you're aiming to create.

Beyond the concept, delineate your restaurant's values, mission, and the unique selling points that set you apart in a crowded market.

2. Comprehensive market analysis

A deep dive into market analysis cannot be overstated. Here, you're not just identifying who your customers are but also understanding the competitive landscape.

What are the prevailing trends in the dining sector? Who are your direct and indirect competitors, and how do you plan to differentiate yourself? This section should reflect a meticulous research process, showcasing insights that guide your strategy.

3. Robust financial planning

In any successful business plan, sound financial management is key.

Essential elements include:

Realistic financial projections: Your forecasts should be realistic, and built on data-backed assumptions.

Detailed profit and loss forecasts

Cash flow predictions

Break-even analysis

Contingency planning: Preparing for unforeseen challenges is crucial.

Develop a well-thought-out contingency plan to navigate the industry's unpredictable nature.

Identify potential risks and solutions, including supplier issues, staffing shortages, and changes in consumer behavior, to ensure business resilience.

4. Operational strategies

Operational excellence underpins a restaurant's success. Detail your plans for day-to-day operations, from sourcing ingredients to managing inventory and staffing.

Highlight your commitment to quality and efficiency in every aspect of the operation, from the kitchen to customer service.

Also, outline the technology and systems you'll implement to streamline processes and enhance the dining experience.

5. Marketing and branding

In today's digital age, a savvy marketing and branding strategy is crucial.

Describe how you'll create a strong brand identity and the channels you'll use to reach your target audience.

From social media campaigns to community engagement initiatives, your plan should reflect a keen understanding of how to connect with potential customers and build a loyal following.

Discover how to create a marketing deck to align your strategy with your business objectives, target audience needs, and market trends.

6. Customer experience focus

Exceptional customer service is the lifeblood of any successful restaurant. Detail the steps you'll take to ensure every guest feels valued and satisfied.

From the ambiance and menu design to staff training programs, every element should contribute to a memorable dining experience.

Feedback mechanisms and how you'll adapt to customer preferences are also vital components of this section.

What should be included in a restaurant business plan?

Creating a restaurant business plan is a foundational step toward launching a successful dining establishment.

It outlines your vision, strategy, and the specific actions you plan to take to make your restaurant a success.

Below, we break down the essential components that should be included in your restaurant business plan, ensuring clarity, comprehensiveness, and appeal to potential investors.

8 essential sections of a restaurant business plan:

1. Executive summary

A compelling overview of the restaurant, showcasing its unique concept, mission, and strategic objectives that guide its operations.

Overview: Present a succinct snapshot of your restaurant, including its concept, mission, key goals, and ownership structure.

Purpose: Highlight what you aim to achieve with the restaurant and the appeal it has to potential investors or lenders.

2. Business description

An in-depth look at the restaurant's theme, location, and how these elements combine to create a distinctive dining experience.

Concept and theme: Describe the unique aspects of your restaurant's concept, from the cuisine and menu items to the design and ambiance.

Location analysis: Analyze the chosen location, discussing demographics, foot traffic, and how these factors make it an ideal spot for your target market.

3. Market analysis

An insightful examination of dining trends, target demographics, and customer needs to inform strategic positioning.

Trends: Examine current trends in the dining industry and how they influence your restaurant's positioning.

Target demographic: Identify your target customers, detailing their preferences, dining habits, and how your restaurant will meet their needs.

Needs and preferences: Focus on understanding and catering to what your target market seeks in a dining experience.

4. Competitive analysis

A detailed evaluation of competitors, focusing on differentiation and strategies for establishing a market edge.

Competitors: List direct and indirect competitors, analyzing their strengths, weaknesses, and how you'll differentiate your restaurant.

Differentiation: Explain the unique selling points that will set your restaurant apart in the competitive landscape.

5. Menu and product offering

Overview of menu design, ingredient sourcing, and special services that enhance the restaurant's appeal.

Menu design: Discuss the inspiration behind your menu, including how it reflects the theme and caters to your target demographic. Outline your pricing strategy and item selection.

Sourcing and suppliers: Detail your approach to sourcing high-quality ingredients, including partnerships with local suppliers and commitments to sustainability.

Special offerings: Highlight any additional services your restaurant offers, such as catering, special events, or exclusive seasonal menus, to draw in a wider audience and generate extra revenue.

6. Marketing and sales strategy

A summary of branding efforts, promotional tactics, and sales projections designed to attract and retain customers.

Branding: Detail your restaurant's brand identity, including name, logo, and how it communicates your restaurant's values and mission.

Marketing tactics: Outline the strategies you will employ to attract and retain customers, such as social media marketing, local advertising, partnerships, and loyalty programs.

Sales forecasts: Provide realistic sales forecasts, explaining the rationale behind these projections and how you plan to achieve them.

7. Operating plan

Description of daily operations, facility management, and health safety protocols to ensure smooth and compliant restaurant functionality.

Daily operations: Describe the operational flow of the restaurant, including hours of operation, staffing requirements, and customer service policies.

Facility management: Discuss the layout and design of your restaurant, kitchen equipment needs, and any other facility-related details that will ensure efficient operation.

Health and safety: Outline the health and safety measures you will implement to comply with local regulations and ensure the well-being of both employees and guests.

8. Management and organization

An outline of the restaurant's organizational structure, key personnel, and staffing strategies for operational excellence.

Ownership structure: Specify the ownership structure of the restaurant, including key stakeholders and their roles.

Team composition: Introduce the management team, chefs, and other critical staff, highlighting their experience and how it contributes to the restaurant's success.

Staffing plans: Discuss your plans for hiring staff, including numbers, positions, and the qualities you seek in employees to maintain high standards of service.

How to create a business plan for a restaurant?

Creating a standout business plan for your restaurant involves focusing on key components that blend your vision with practical strategies.

6 actionable steps to distill your restaurant business plan:

Define your concept clearly: Begin by articulating your restaurant's concept, ambiance, and what sets it apart. This clarity lays the groundwork for the entire business plan.

Conduct thorough market analysis: Dive deep into your target market and competitors. This research will guide your menu design, pricing strategy, and marketing efforts, ensuring you carve out a unique space in the marketplace.

Craft a compelling menu: Ensure your menu reflects your brand identity and appeals to your target audience, all while considering cost-effectiveness and supply chain realities. Aim for a balance between innovation and simplicity.

Develop realistic financial projections: Detail initial costs, revenue expectations, and a break-even point. Importantly, predict potential hurdles with ready contingency plans.

Outline operational strategies: Describe your daily management approach, including sourcing, staffing, and customer service. Efficient operations are crucial for a seamless experience and streamlined processes.

Implement strategic marketing: Choose the most effective ways to connect with your audience. Building a strong brand narrative and engaging actively with customers can help turn first-time visitors into regulars.

7 restaurant business plan examples for winning partners and investors

When it comes to crafting a business plan for a restaurant, the type of establishment you're planning significantly influences the structure and content of the document.

Each kind of restaurant from fast-casual and fine dining to food trucks and bistros-caters to different market segments and operational models.

Here's a look at how these differences manifest in their respective business plans:

1) Fine dining restaurant business plan

Market focus: Targets higher-income clientele seeking a premium dining experience. The plan should highlight exceptional service, high-quality ingredients, and unique culinary offerings.

Operational model: Detailed attention to the ambiance, chef expertise, and a higher staff-to-guest ratio. Wine lists and bar offerings also play a significant role.

Financial projections: Emphasizes higher check averages with a focus on profitability per guest rather than volume. The cost structure will detail higher initial investment in decor, kitchen equipment, and inventory.

Here’s an example of a fine-dining restaurant business plan:

2) Bar restaurant business plan

Market focus: Targets a diverse clientele, from young professionals to social groups, seeking a blend of dining and socializing.

Operational model: Balances innovative cuisine with an extensive beverage selection in a space designed for both eating and lounging, including live entertainment options.

Financial projections: Outlines dual revenue streams from food and drinks, emphasizing beverage sales' higher profit margins and detailing licensing, entertainment, and insurance costs.

Here’s an example of a bar restaurant pitch deck:

3) Bistro restaurant business plan

Market focus: Caters to locals and tourists seeking a casual yet refined dining experience, positioning itself as a cozy neighborhood spot.

Operational model: Highlights a selective menu that adapts seasonally, emphasizing a warm ambiance and personal service.

Financial projections: Projects moderate earnings with a strong local following, noting initial investments in location and ambiance to create a distinctive setting.

Here’s an example of a bistro restaurant pitch deck:

4) Food truck business plan

Market focus: Appeals to urban professionals, millennials, and foodies looking for unique, high-quality food options on the go.

Operational model: Mobility is key. The plan must address location strategy, permits and regulations, and adaptability to different events and seasons.

Financial projections: Lower startup costs compared to brick-and-mortar establishments but include considerations for vehicle maintenance, fuel, and parking permits.

5) Coffee restaurant business plan

Market focus: Appeals to a varied audience with a unique theme or specialty cuisine, standing out from conventional coffee shops.

Operational model: Details the influence of theme or cuisine on menu design, decor, and guest experience, aiming to make the restaurant a destination.

Financial projections: Anticipates varied financial outcomes based on concept uniqueness, with thorough market research guiding pricing and marketing strategies.

6) Italian, Mexican, Asian, etc., cuisine restaurant business plan

Market focus: Focuses on providing authentic dining experiences to both expatriates and locals interested in specific cuisines.

Operational model: Requires sourcing authentic ingredients and skilled chefs familiar with the cuisine. The business plan should address menu authenticity, culinary training, and potential partnerships for ingredient import.

Financial projections: Depending on the positioning (casual vs. fine dining), financials would reflect the cost of unique ingredients and the expected dining experience level.

Here’s an example of an Italian restaurant business plan proposal:

7) Fast food restaurant business plan

Market focus: These plans emphasize speed, efficiency, and affordability. The target market typically includes busy professionals, families looking for convenient meal options, and younger demographics.

Operational model: The business plan must detail quick service operations, including streamlined kitchen layouts, supply chain logistics for fast-moving inventory, and technology for order taking (e.g., apps, and kiosks).

Financial projections: Focus on volume sales, low to moderate check averages, and strategies for high turnover rates.

How to design a restaurant business plan?

Designing a restaurant business plan is much like crafting a compelling game pitch deck, it's all about presenting your concept in a way that's as irresistible as the dining experience you're proposing.

8 restaurant business plan design tips:

1. Embrace scrollytelling

Use narrative scrolling to take your audience through the journey of your restaurant's concept, from the inspiration behind your dishes to the ambiance you plan to create.

This dynamic presentation style keeps readers engaged, turning your business plan into an immersive experience.

Here's an example of scroll-based design:

2. Incorporate interactivity and multimedia

Go beyond static pages by embedding interactive elements like sample menu walkthroughs, virtual tours of the restaurant layout, or clips from cooking demos.

These elements not only highlight your restaurant's unique offerings but also keep potential investors or partners engaged throughout your presentation.

And here's what a static presentation looks like compared to an interactive one:

Static PowerPoint

Interactive Storydoc

3. Use data visualization

Present market research, target demographics, and financial projections through clear, compelling visuals.

Transform complex data into easy-to-understand graphs, charts, and infographics, making your business strategy both visually appealing and straightforward to grasp.

Here's an example of a presentation with dataviz elements:

4. Personalize your deck

Leverage software that allows for customization, such as incorporating the viewer's name or tailoring content to specific investor interests.

A personalized approach demonstrates meticulous attention to detail and can forge a stronger connection with your audience.

5. Use cohesive branding

Ensure your business plan reflects your restaurant's identity through consistent use of colors, fonts, and imagery that align with your branding.

This not only enhances the visual appeal of your plan but also immerses your audience in the atmosphere you aim to create.

6. Ensure mobile-responsive

Given the variety of devices stakeholders might use to view your plan, ensuring a mobile-responsive design is essential.

This ensures that your business plan is accessible and engaging, whether it's being viewed on a smartphone or a desktop computer.

7. Highlight key information

Design your business plan to draw attention to critical information.

Techniques such as strategic content placement and highlighting can guide the reader's focus, ensuring that essential points stand out without overwhelming the viewer with too much information at once.

8. Segment content in tabs

Organize your business plan into sections or tabs that cater to different aspects of your restaurant concept and business strategy.

This not only makes your plan more navigable but also allows readers to easily find the information most relevant to their interests or concerns.

Here's an example of a tabs slide:

Restaurant business plan templates

Kicking off your restaurant business plan is a daunting task, especially when you aim to capture the essence of your dining concept in a document.

Interactive restaurant business plan templates are designed to simplify this process. They provide a structured framework that incorporates interactive and multimedia elements, essential for presenting your restaurant in a vibrant and dynamic manner.

These templates not only save you precious time but also guarantee that your business plan conveys a polished and compelling story.

Snag one today!

I am a Marketing Specialist at Storydoc, I research, analyze and write on our core topics of business presentations, sales, and fundraising. I love talking to clients about their successes and failures so I can get a rounded understanding of their world.

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Why restaurants are the fastest growing business in Kochi

Unique and rich culinary heritage is what makes Kochi a foodie's paradise. From the local chicken curry, flaky porotta, and schezwan dishes to the Arabic delicacies like Alfaham and flatbreads like pathiri, naan, and khuboos, the incredible and elaborate platter that Kochi offers is mind blowing.

This interest in food and unique gastronomic experience has made this vibrant city a haven of restaurants and eateries where the food business thrives like nowhere else in Kerala.

Even when Malayali food lovers refuse to give up their all time favourites of porotta and beef or puttu and kattan (black tea), they are ready to experiment with flavours and dishes that appeal to their taste buds.

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Food business has become one of the rapidly growing businesses in Kochi with lots of restaurants and hotels cropping up at many prime spots. Though the number of hotels has significantly gone up in the recent years, eateries wouldn't be able to find a foothold if they don't serve delicious and clean food.

Local dishes

Rice and curries is a staple of Keralites without which they cannot survive. Dishes like puttu, idli, dosa and puri, too, find a place in our regular diet. So, restaurants that serve authentic Kerala dishes keep growing, drawing huge crowds.

The increased popularity of sulaimani (spiced black tea) and other local dishes play a vital role in encouraging entrepreneurs to open more eateries that serve traditional or local cuisine.

Fusion flavours

When the spiciness of Kerala dishes merge with the sophisticated flavours of continental cuisine it becomes a celebration of cultures. Fusion hotels which serve interesting flavours, without losing the soul of the traditional cuisine, have become the favourites among those who are up to try out unique dishes.

Arabic and Chinese

The Arabic and Chinese dishes enjoy incredible demand, with lots of restaurants including such dishes in their menus. These eateries have become a favourite hub of those who wish to try the unique flavours of these cuisines.

Besides, the fact that a variety of meat dishes are served in huge quantities too attract foodies to these hotels. Many new hotels make sure that they have Arabic and Chinese dishes on their menus.

Great ambience

Gone are the times when people were looking for hotels that served good food for cheap rates. Not just delicious food or reasonable pricing, but people now prefer eating at a place which is clean, boasts of great ambience, and have friendly staff too.

There are even people who choose hotels based on the kind of songs that are played there. A hotel or an eatery has to consider all these factors to survive in the ever growing restaurant business in Kochi.

Family time

Until a few years ago, the nights were taken over by the youngsters who had their favourite hangout spots in the city. However, now even families like enjoying a cozy dinner at an amazing restaurant, with great ambience, that serves mouthwatering food.

The hotels that used to close down at midnight now open till 2 am, to host such families who enjoy the night life. The employees at these hotels say that after the lunch hour rush, the eateries then buzz with customers at night.

The number of new customers trying out the dishes at a restaurant is almost same as their regular customers. The hotel industry in Kochi is indeed growing at a faster pace to cater to the unique flavour profiles and preferences of Malayali food lovers.

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How it works

How to Write a Restaurant Business Plan in 2024 (Step by Step Guide with Templates)

A restaurant business plan is a framework that guides you to plan and forecast every element of restaurant management and operations.

This includes anything from your restaurant's menu design , location, financials, employee training , and a lot more.

Creating a solid business plan is important, as it helps:

• Transform your restaurant ideas into reality.
• Boosts entrepreneurial success by 16% (Harvard Business Study) .
• It equips you to navigate challenges before they arise.
• Attracts potential investors.

Planning is key to restaurant success. Without a plan, you're more likely to join the 26% of restaurants that fail within a year.

Create a business plan to set yourself up for success.

Here's how to get started. 

What is a restaurant business plan? 

Before writing a business plan, it is important to understand its fundamentals.

It serves as a roadmap for starting and running your restaurant , making it easy for outside parties, such as investors, to understand your objectives, vision, and plan of action for your restaurant.

The length and level of detail of business plans vary, ranging from brief synopses to large papers. Investors can benefit from clear insights and additional information provided by beginning with a concise plan and working their way up to a detailed one.

In short, a thorough description of the resources allocated to the success of your restaurant should be included in your business plan.

Steps to include in your business plan 

Your restaurant and mission statement needs to reflect your brand and goals, but you don't have to start from scratch.

The Eat App Restaurant Business Plan template , created by industry professionals and packed with insider information, is your go-to manual for creating a profitable business plan.

Your finalized business plan should have 11 essential elements, no matter how you write it. Continue reading below. 

1. Executive summary

A restaurant business plan should always begin with an executive summary. Why?

• 80% of venture capitalists say they read the executive summary first.
• 62% of investors say they would not continue reading a business plan if the executive summary did not capture their interest.
• A strong executive summary can increase the likelihood of securing funding by up to 40%.

An executive summary not only acts as the introduction to your restaurant business plan samples but also as a summary of the entire idea.

The main aim of an executive summary is to draw the reader (oftentimes an investor) into the rest of your business plan.

The executive summary also helps you envision the identity of your restaurant which essentially shapes the customer experience and sets you apart from competitors.

To establish a distinct identity, you need to focus on c ommon elements of an executive summary, including:

• A mission statement  
• Proposed concept development
• Cuisine selection
• The overall execution
• The potential costs
• Expected return on investments (ROI)

Let's take a more in-depth look at the concept development, cuisine selection, and mission statement.

Further reading

• How to write a restaurant executive summary

Concept Development

Selecting the type of restaurant, service style, and atmosphere is the first step towards creating a unique dining experience. Whether you envision a sample menu for a:

• cozy, intimate bistro
• bustling quick-service deli
• fast-casual restaurant
• fine dining establishment

Your concept should reflect your passion and expertise in the industry.

Cuisine Selection

The cuisine you select for your restaurant can significantly influence its success.

Choosing the appropriate cuisine is vital for distinguishing your establishment from competitors and attracting your target market.

To make an informed decision, consider factors such as:

• Market demand
• Expertise and passion
• Ingredient availability
• Competition
• Profitability
• Cultural fit
• Seasonality
• Dietary restrictions and trends

In the highly competitive restaurant industry, keeping track of current and emerging cuisine trends can be a significant advantage.

Creating a mission statement

A well-constructed mission statement communicates the purpose, values, and goals of your restaurant to potential investors and customers alike.

A mission statement serves as a guiding light for decision-makers and employees, fueling their efforts to achieve your restaurant’s objectives.

To create an impactful mission statement, consider the following steps:

• Identify the purpose of the restaurant.
• Contemplate the brand’s image.
• Account for the target audience.
• Incorporate company values.
• Ensure brevity and comprehensiveness.

Related content:  How to Write a Restaurant Mission Statement  

Remember, your mission statement should not only differentiate your restaurant from competitors but also resonate with your target market .

2. Company description

This is where you carefully introduce the company in the restaurant business plan. Include the name of the restaurant you are launching in this field along with its address, phone number, and other important information. Then, also include the owner's information as well as a synopsis or explanation of their background. The restaurant's legal position and its short- and long-term objectives should be outlined in the second section of the company description. To demonstrate your understanding of the changes in the local food business and the reasons why the most independent restaurant investors will be successful in this market, please submit a brief market research.

Here's an example of the page layout:  

Company Description

Restaurant Name: [Restaurant Name]

Location: [Restaurant Address]

Contact: [Restaurant Phone Number] | [Restaurant Email Address]

Owner: [Owner Name]

Experience: [Owner Name] has over [Number] years of experience in the restaurant industry. They have worked in various roles, including [List of Roles]. They are passionate about food and creating a memorable dining experience for their guests.

Legal Standing: [Restaurant Name] is a [Type of Legal Entity] registered in [State/Province].

3. Market analysis

The market analysis portion of the restaurant business plan is typically divided into three parts.

3.1 Industry analysis

What is your target market? What demographics will your restaurant cater to?

This section aims to explain your target market to investors and why you believe guests will choose your restaurant over others.

Comprehending your target market is key to customizing your restaurant offerings to their preferences and needs.

By diving into demographics, preferences, dining habits, and trends, you can fine-tune your concept and marketing strategy to reach and appeal to your target audience effectively.

An example of analyzing your target market

  Comprehending your target market is key to customizing your restaurant offerings to their preferences and needs.

Demographics and preferences

Identifying your primary target market involves considering factors such as:

For example, a neighborhood with a high concentration of families might prefer a family-friendly restaurant with a diverse menu catering to various age groups and dietary preferences.

Conversely, a trendy urban area with a predominantly young and affluent population may gravitate towards upscale dining experiences and innovative cuisine.

Cultural and ethnic backgrounds also have a significant impact on restaurant preferences, with people from different backgrounds having distinctive tastes and customs that influence their dining choices.

By thoroughly understanding the demographics and preferences of your target market, you’ll be better equipped to create a restaurant concept that resonates with them and ultimately drives success.

Dining habits and trends

As the restaurant industry continues to evolve, staying informed about dining habits and trends is crucial for adapting your offerings and attracting customers.

For example, the rise of online ordering and delivery services has significantly influenced dining habits, with many consumers seeking the convenience of having their meals delivered to their doorstep.

Health trends have also had an impact on dining habits, with an increasing number of individuals seeking healthier options when dining out.

• How to find your restaurant's target market

3.2 Competition analysis

It's easy to assume that everyone will visit your new restaurant first, so it is important to research your competition to make this a reality.

What restaurants have already established a customer base in the area?

Take note of everything from their prices, hours, and service style to menu design to the restaurant interior.

Then explain to your investors how your restaurant will be different.

3.3 Marketing analysis

Your investors are going to want to know how you plan to market your restaurant. How will your marketing campaigns differ from what is already being done by others in the restaurant industry?

How do you plan on securing your target market? What kind of offers will you provide your guests? Make sure to list everything.

The menu is the most important part of a restaurant's debut. Your restaurant wouldn't be able to operate without it.

You most likely don't have a final draft at this time, but you should aim to create a mock-up for your restaurant business plan. You can choose a design that you can envision yourself using and add your logo to the mock-up.

• Top Free Restaurant Menu Makers

There are several resources available online if you need assistance with menu design or don't want to hire a designer.

But the price should be the most important component of your sample menu. The cost research you've completed for investors ought to be reflected in your prices. They will have a clearer idea of your restaurant's intended price range as a result.  You'll quickly see how important menu engineering can be, even early on.

5. Employees

The company description section of the restaurant business plan briefly introduces the owners of the restaurant with some information about each. This section should fully flesh out the restaurant's business plan and management team.

The investors don’t expect you to have your entire team selected at this point, but you should at least have a couple of people on board. Use the talent you have chosen thus far to highlight the combined work experience everyone is bringing to the table.

6. Restaurant design

The design portion of your restaurant business plan is where you can really show off your thoughts and ideas to the investors. If you don’t have professional mock-ups of your restaurant rendered, that’s fine.

Instead, put together a mood board to get your vision across. Find pictures of a similar aesthetic to what you are looking for in your restaurant.

The restaurant design extends beyond aesthetics alone and should include everything from restaurant software to kitchen equipment. 

7. Location

The location you settle on for your restaurant should be well aligned with your target market (making it easier to cater to your ideal customer) and with your business plans.

At this stage in the process, it's not uncommon to not have a specific location in mind - but you should at the very least have a few options to narrow down.

Pro Tip: When you approach your investors about potential locations, make sure to include as much information as possible about each venue and why it would be ideal for your brand. 

Example for choosing an ideal location

Choosing the ideal location for your restaurant is a pivotal decision that can greatly influence your success. 

To make the best choice, consider factors such as foot traffic, accessibility, and neighborhood demographics.

By carefully evaluating these factors, you’ll be better equipped to maximize visibility and attract your target market.

Foot traffic and accessibility

Foot traffic and accessibility are important factors in selecting a location that will attract customers and ensure convenience.

A high-traffic area with ample parking and public transportation options can greatly increase the likelihood of drawing in potential customers.

Additionally, making your restaurant accessible to individuals with disabilities can further broaden your customer base and promote inclusivity.

Neighborhood demographics

Analyzing neighborhood demographics can help you determine if your restaurant’s concept and cuisine will appeal to the local population.

Factors such as income levels, family structures, and cultural diversity can all influence dining preferences and habits.

By understanding the unique characteristics of the neighborhood, you can tailor your offerings and marketing efforts to resonate with the local community.

Conducting a market analysis can be a valuable step in this process.

To gather demographic data for a particular neighborhood, you can utilize resources such as the U.S. Census Bureau’s American Community Survey and reference maps.

Armed with this information, you can make informed decisions about your restaurant’s concept, menu, and pricing, ensuring that your establishment is well-positioned for success within the community.

Conducting market research will further strengthen your understanding of the local demographic.

8. Market overview

The market overview section is heavily related to the market research and analysis portion of the restaurant business plan. In this section, go into detail about both the micro and macro conditions in the area you want to set up your restaurant.

Discuss the current economic conditions that could make opening a restaurant difficult, and how you aim to counteract that. Mention all the other restaurants that could prove to be competition and what your strategy is to set yourself apart.

9. Marketing

With restaurants opening left and ride nowadays, investors are going to want to know how you will get word of your restaurant to the world.

The next marketing strategy and publicity section should go into detail on how you plan to market your restaurant before and after opening. As well as any plans you may have to bring a PR company on board to help spread the word.

Read more: How to write a restaurant marketing plan from scratch

10. External help

To make your restaurant a reality, you are going to need a lot of help. List any external companies or software you plan on hiring to get your restaurant up and running.

This includes everything from accountants and designers to suppliers that help your restaurant perform better, like POS systems and restaurant reservation systems .

Explain to your other potential investors about the importance of each and what they will be doing for your restaurant.

11. Financial analysis

The most important part of your restaurant business plan is the financial section . We would recommend hiring professional help for this given its importance.

Hiring a trained accountant will not only help you get your own financial projections and estimates in order but also give you a realistic insight into owning a restaurant.

You should have some information prepared to make this step easier for the accountant.

He/she will want to know how many seats your restaurant has, what the check average per table will be, and how many guests you plan on seating per day.

In addition to this, doing rough food cost calculations for various menu items can help estimate your profit margin per dish. This can be achieved easily with a free food cost calculator. 

• Important restaurant metrics to track

A well-crafted restaurant business plan serves as a roadmap to success, guiding every aspect of the venture from menu design to employee training.

By carefully considering each component of the plan, aspiring restaurateurs can increase their chances of securing funding, attracting customers, and achieving their long-term goals.

Remember, a restaurant business plan is not just a document to satisfy investors; it is a living tool that should be revisited and updated regularly as the business grows and evolves.

By staying committed to the plan and adapting it as needed, restaurateurs can ensure that their culinary dreams have a solid foundation for success.

Growth Marketing Manager at Eat App

Saif Alnasur used to work in his family restaurant, but now he is a food influencer and writes about the restaurant industry for Eat App.

Reviewed by

Nezar Kadhem

Co-founder and CEO of Eat App

He is a regular speaker and panelist at industry events, contributing on topics such as digital transformation in the hospitality industry, revenue channel optimization and dine-in experience.

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Restaurant Business Plan PDF Example

• February 28, 2024
• Business Plan

Creating a comprehensive business plan is crucial for launching and running a successful restaurant. This plan serves as your roadmap, detailing your vision, operational strategies, and financial plan. It helps establish your restaurant’s identity, navigate the competitive market, and secure funding for growth.

This article not only breaks down the critical components of a restaurant business plan, but also provides an example of a business plan to help you craft your own.

Whether you’re an experienced entrepreneur or new to the food and beverage industry, this guide, complete with a business plan example, lays the groundwork for turning your restaurant concept into reality. Let’s dive in!

Our restaurant business plan is structured to cover all essential aspects needed for a comprehensive strategy. It outlines the restaurant’s operations, marketing strategy , market environment, competitors, management team, and financial forecasts.

• Executive Summary : Offers an overview of the restaurant’s business concept, market analysis , management, and financial strategy.
• Restaurant & Location: Describes the restaurant’s prime location, size, seating capacity, and distinctive design, emphasizing its appeal to the target demographic.
• Supply & Operations: Outlines the supply chain management, focusing on local sourcing and quality ingredients, and details the operational aspects, including kitchen layout, equipment, and front-of-house operations.
• Key Stats: Shares industry size , growth trends, and relevant statistics for the full-service restaurant market.
• Key Trends: Highlights recent trends affecting the restaurant sector, such as health-conscious dining, sustainability, and technology integration.
• Key Competitors : Analyzes the main competitors in the vicinity, showcasing the restaurant’s unique selling proposition in comparison.
• SWOT: Strengths, weaknesses, opportunities, and threats analysis.
• Marketing Plan : Strategies for promoting the restaurant to maximize visibility and customer engagement.
• Timeline : Key milestones and objectives from the initial setup through the launch and operational optimization.
• Management: Information on who manages the restaurant and their roles.
• Financial Plan: Projects the restaurant’s financial performance, including revenue, profits, and expected expenses, aiming for profitability and sustainable growth.

Restaurant Business Plan

Fully editable 30+ slides Powerpoint presentation business plan template.

Download an expert-built 30+ slides Powerpoint business plan template

Executive Summary

The Executive Summary introduces your restaurant’s business plan, offering a concise overview of your establishment and its offerings. It should detail your market positioning, the variety of cuisines and dining experiences you offer, its location, size, and an outline of day-to-day operations. 

This section should also explore how your restaurant will integrate into the local market, including the number of direct competitors within the area, identifying who they are, along with your restaurant’s unique selling points that differentiate it from these competitors. 

Furthermore, you should include information about the management and co-founding team, detailing their roles and contributions to the restaurant’s success. Additionally, a summary of your financial projections, including revenue and profits over the next five years, should be presented here to provide a clear picture of your restaurant’s financial plan.

Make sure to cover here _ Business Overview _ Market Overview _ Management Team _ Financial Plan

Dive deeper into Executive Summary

Business Overview

For a Restaurant, the Business Overview section can be concisely divided into 2 main slides:

Restaurant & Location

Briefly describe the restaurant’s physical environment, emphasizing its design, ambiance, and the overall dining experience it offers to guests. Mention the restaurant’s location, highlighting its accessibility and the convenience it offers to diners, such as proximity to entertainment venues or ease of parking. Explain why this location is advantageous in attracting your target clientele.

Supply & Operations

Detail the range of cuisines and dishes offered, from appetizers and main courses to desserts and specialty beverages. Outline your sourcing strategy, ensuring it reflects a commitment to quality and sustainability, and matches the market you’re targeting.

Highlight any unique culinary techniques, exclusive ingredients, or innovative kitchen technologies that set your restaurant apart. Discuss your operational strategies, including inventory management, supplier relationships, and kitchen workflow, to ensure efficiency and consistency in delivering exceptional dining experiences.

Make sure to cover here _ Restaurant & Location _ Supply & Operations

Market Overview

Industry size & growth.

In the Market Overview of your restaurant business plan, start by examining the size of the restaurant industry and its growth potential. This analysis is crucial for understanding the market’s scope and identifying expansion opportunities.

Key market trends

Proceed to discuss recent market trends , such as the increasing consumer interest in farm-to-table dining, ethnic cuisines, and experiential dining experiences.

For example, highlight the demand for restaurants that offer unique cultural dishes, the growing popularity of health-conscious and dietary-specific menus, and the integration of technology in enhancing the dining experience.

Key competitors

Then, consider the competitive landscape, which includes a range of dining establishments from gourmet fine dining to fast-casual eateries, as well as the rise of food delivery services and meal kits.

For example, emphasize what makes your restaurant distinctive, whether it’s through a unique culinary approach, a niche market focus, or a strong commitment to sustainability and local sourcing.

Make sure to cover here _ Industry size & growth _ Key market trends _ Key competitors

Dive deeper into Key competitors

First, conduct a SWOT analysis for the restaurant , highlighting Strengths (such as a unique menu and exceptional customer service), Weaknesses (including potential high operational costs or strong competition in the area), Opportunities (for example, a growing interest in diverse cuisines and healthy eating), and Threats (such as economic downturns that may decrease consumer spending on dining out).

Marketing Plan

Next, develop a marketing strategy that outlines how to attract and retain customers through targeted advertising, promotional discounts, an engaging social media presence, food blogger outreach, and community involvement, such as local events or charity sponsorships.

Finally, create a detailed timeline that outlines critical milestones for the restaurant’s opening, marketing campaigns, customer base growth, and expansion objectives, ensuring the business moves forward with clear direction and purpose.

Make sure to cover here _ SWOT _ Marketing Plan _ Timeline

Dive deeper into SWOT

Dive deeper into Marketing Plan

The management section focuses on the restaurant’s management and their direct roles in daily operations and strategic direction. This part is crucial for understanding who is responsible for making key decisions and driving the restaurant towards its financial and operational goals.

For your restaurant business plan, list the core team members, their specific responsibilities, and how their expertise supports the business.

Financial Plan

The Financial Plan section is a comprehensive analysis of your financial projections for revenue, expenses, and profitability. It lays out your restaurant’s approach to securing funding, managing cash flow, and achieving breakeven.

This section typically includes detailed forecasts for the first 5 years of operation, highlighting expected revenue, operating costs and capital expenditures.

For your restaurant business plan, provide a snapshot of your financial statement (profit and loss, balance sheet, cash flow statement), as well as your key assumptions (e.g. number of customers and prices, expenses, etc.).

Make sure to cover here _ Profit and Loss _ Cash Flow Statement _ Balance Sheet _ Use of Funds

Privacy Overview

Restaurant Business Plan Template

Written by Dave Lavinsky

Restaurant Business Plan

You’ve come to the right place to create your restaurant business plan.

We have helped over 100,000 entrepreneurs and business owners with how to write a restaurant business plan to help them start or grow their restaurants.

Below is a restaurant business plan template to help you create each section of your business plan.

Restaurant Business Plan Example

Executive summary, business overview.

Bluehorn Restaurant & Steakhouse is a new restaurant and steakhouse located in Oklahoma City, Oklahoma. The menu of Bluehorn Restaurant & Steakhouse will include bistro-type dishes that are authentically created and crafted by acclaimed Chef Peter Logan. It will be located in the trendy part of town, known as the Plaza District. The restaurant will be surrounded by classy art galleries, live theater, high-end restaurants and bars, and expensive shopping.

Owned by emerging restaurant operators Chef Peter Logan and Anastasia Gillette, Bluehorn Restaurant & Steakhouse’s mission is to become Oklahoma City’s best, new restaurant for patrons to celebrate their next big event, have a nice date night, or gather with friends or family for a fun evening while dining over finely crafted entrees, desserts, and cocktails.

Products Served

The following are the menu items to be offered by Bluehorn Restaurant & Steakhouse:

• Soups & Salads
• Gourmet sides
• Wine, Beer & Spirits

Customer Focus

Bluehorn Restaurant & Steakhouse will target adult men and women between the ages of 21 – 65 with disposable income in Oklahoma City, Oklahoma. Within this demographic are millennials, young professionals, newlyweds, young families, more established families, and retirees. Because of the pricing structure of the menu, the patrons will likely be upper middle class to the wealthy population of Oklahoma City.

Management Team

Bluehorn Restaurant & Steakhouse is owned and operated by fellow Oklahoma City natives and culinary enthusiasts, Chef Peter Logan and Anastasia Gillette. Both come with a unique skill set and complement each other perfectly. They formerly worked together at another OKC fine dining establishment and made a great team for serving guests delectable food and wine while ensuring the highest level of customer service.

Chef Peter will manage the kitchen operations of Bluehorn Restaurant & Steakhouse, while Anastasia will oversee front of the house operations, maintain and ensure customer service, and manage all reservations.

Financial Highlights

Bluehorn Restaurant & Steakhouse is seeking $300,000 in debt financing to open its start-up restaurant. The funding will be dedicated for the build-out and design of the restaurant, kitchen, bar and lounge, as well as cooking supplies and equipment, working capital, three months worth of payroll expenses and opening inventory. The breakout of the funding is below:

• Restaurant Build-Out and Design – $100,000
• Kitchen supplies and equipment – $100,000
• Opening inventory – $25,000
• Working capital (to include 3 months of overhead expenses) – $25,000
• Marketing (advertising agency) – $25,000
• Accounting firm (3 months worth and establishment/permitting of business) – $25,000

Company Overview

Bluehorn Restaurant & Steakhouse is a new restaurant and steakhouse located in Oklahoma City, Oklahoma. Bluehorn Restaurant & Steakhouse will serve a wide variety of dishes and beverages and will cater to the upper middle class to wealthier population of Oklahoma City. The menu of Bluehorn Restaurant & Steakhouse will include bistro-type dishes that are authentically created and crafted by acclaimed Chef Peter Logan. It will be located in the trendy part of town, known as the Plaza District. The Plaza District is one of Oklahoma’s trendy neighborhoods and is considered the “it” area for newlyweds, millennials, professionals, and young singles. The restaurant will be surrounded by classy art galleries, live theater, high-end restaurants and bars, and expensive shopping.

Owned by emerging restaurant operators Chef Peter Logan and Anastasia Gillette, the restaurant’s mission statement is to become the best new steak restaurant in OKC. The following are the types of menu items Bluehorn Restaurant & Steakhouse will serve- shareables, steaks, soups, gourmet sides and salads.

Bluehorn Restaurant & Steakhouse History

Bluehorn Restaurant & Steakhouse is owned by two Oklahoma City natives, Chef Peter Logan and Anastasia Gillette. They have both worked around the country in fine dining establishments and have a combined twenty years in the restaurant industry. Upon working alongside each other at another fine dining establishment in Oklahoma City, the two of them became good friends and decided to venture into owning their own restaurant.

Chef Peter is the kitchen guru and critically acclaimed chef, while Anastasia manages the front of the house and is a certified Sommelier. Together, with both of their expertise and knowledge, Bluehorn Restaurant & Steakhouse is destined to become Oklahoma City’s next big restaurant.

Industry Analysis

The Restaurant industry is expected to grow to over $220 billion in the next five years.

Consumer spending is projected to grow. The Consumer Confidence Index, a leading indicator of spending patterns, is expected to also grow strongly, which will boost restaurant industry growth over the next five years. The growth in consumer confidence also suggests that more consumers may opt to segment their disposable income to eating outside the home.

Additionally, an increase in the number of households earning more than $100,000 annually further contributes to the industry growth, supporting industry operators that offer more niche, higher-end products.  This group is expected to continue to grow in size over the next five years.

The urban population represents a large market for the industry. Specifically, time-strapped individuals living in urban areas will likely frequent industry establishments to save time on cooking. The urban population is expected to increase, representing a potential opportunity for the industry.

Customer Analysis

Demographic profile of target market, customer segmentation.

Bluehorn Restaurant & Steakhouse will primarily target the following customer profile:

• Upper middle class to wealthier population
• Millennials
• Young professionals
• Households with an average income of at least $75k
• Foodies and culture enthusiasts

Competitive Analysis

Direct and indirect competitors.

Bluehorn Restaurant & Steakhouse will be competing with other restaurants in Oklahoma City. A profile of each competitor is below. The Press Located in the trendy area known as the Plaza District, The Press has reimagined our favorite foods of the surrounding regions through the lens of home.

The menu consists of appetizers, soups, burgers and sandwiches, bowls, main dishes, sides, desserts, and a large selection of alcoholic beverages. The Press serves craft beer, domestic beer, wine spritzers, house cocktails, wine, and mimosas. They also offer brunch. The menu of The Press is affordable with the most expensive dish being $16. The wine menu is also not pretentious as the wine is sold either by the glass or bottle, with the most expensive bottle being $52 for the Gruet Sparkling Brut Rose. Oak & Ore Oak & Ore is a craft beer and restaurant in OKC’s Plaza District. They have a 36-tap beer selection and offer vegetarian, vegan, and gluten free dining options. Oak & Ore offers a rotating, 36-tap selection of their favorite brews from Oklahoma and around the world. Each beer is thoughtfully paired with a craft beer-inspired dining experience.

The food menu of Oak & Ore offers starters, salads, wings, fried chicken, sandwiches, tacos, banh mi, and sides. They also have a selection of kids dishes so the whole family can enjoy comfort food while sampling one of their delectable beers.

The Mule OKC The Mule is a casual, hip restaurant offering a large beer and cocktail menu plus sandwiches and more. Located in the constantly growing and buzzing hub that is the Plaza District, The Mule takes the timeless favorite and contorts it into a whole menu of wild offerings.

There is also a fantastic assortment of soups offered and The Mule shakes up a seasonal list of cocktails designed by their bar staff. During the winter months, patrons can stave off the cold with their versions of hot toddies and buttered rum. For the beer drinkers, they always have a reliable line-up of fresh cold brews on draft, as well as a wide selection of can.

Competitive Advantage

Bluehorn Restaurant & Steakhouse offers several advantages over its competition. Those advantages are:

• Gourmet dishes elegantly prepared to the finest standard.
• Selection of steaks sourced from local Oklahoma farms.
• An exclusive and unique wine menu that includes a wine selection of all price points.
• Highly sought after location: Bluehorn Restaurant & Steakhouse will be located in the trendy and attractive neighborhood known as The Plaza District.
• Trendy, welcoming, and energetic ambiance that will be perfect for a night out or a celebration.

Marketing Plan

Promotions strategy.

The marketing strategy for Bluehorn Restaurant & Steakhouse is as follows: Location Bluehorn Restaurant & Steakhouse’s location is a promotions strategy in itself. The Plaza District is a destination spot for locals, tourists, and anyone looking for the trendiest food fare in Oklahoma City. The Plaza District is home to OKC’s most popular bars and restaurants, art galleries, theaters, and boutique shopping. The millennials, young professionals, and foodies will frequent Bluehorn Restaurant & Steakhouse for the location itself.

Social Media Bluehorn Restaurant & Steakhouse will use social media to cater to the millennials and Oklahoma City residents. Chef Peter and Anastasia plan to hire an advertising agency to take professional photographs of the menu items and location to create appealing posts to reach a greater audience. The posts will include pictures of the menu items, as well as upcoming featured options. SEO Website Marketing Bluehorn Restaurant & Steakhouse plans to invest funds into maintaining a strong SEO presence on search engines like Google and Bing. When a person types in “local fine dining restaurant” or “Oklahoma City restaurant”, Bluehorn Restaurant & Steakhouse will appear in the top three choices. The website will include the full menu, location, hours, and lots of pictures of the food, drinks, and steaks. Third Party Delivery Sites Bluehorn Restaurant & Steakhouse will maintain a presence on sites like GrubHub, Uber Eats, Doordash, and Postmates so that people looking for local food to be delivered will see Bluehorn Restaurant & Steakhouse listed near the top.

Operations Plan

Operation functions:.

The company will hire the following:

• 4 sous chefs
• 2 bartenders
• 2 hostesses
• The company will hire an advertising agency and an accounting firm

Milestones:

Bluehorn Restaurant & Steakhouse aims to open in the next 6 months. The following are the milestones needed in order to obtain this goal.

7/1/202X – Execute lease for prime location in the Plaza District.

7/2/202X – Begin construction of restaurant build-out.

7/10/202X – Finalize menu.

7/17/202X – Hire advertising company to begin developing marketing efforts.

8/15/202X – Start of marketing campaign

8/22/202X – Final walk-thru of completed restaurant build-out.

8/25/202X – Hire team of sous chefs, servers, and bussers.

9/1/202X – Decoration and set up of restaurant.

9/15/202X – Grand Opening of Bluehorn Restaurant & Steakhouse

Bluehorn Restaurant & Steakhouse will be owned and operated by Chef Peter Logan and Anastasia Gillette. Each will have a 50% ownership stake in the restaurant.

Chef Peter Logan, Co-Owner

Chef Peter Logan is an Oklahoma City native and has been in the restaurant industry for over ten years. He was trained in a prestigious Le Cordon Bleu Culinary Academy in San Francisco and has worked in some of the nation’s most prestigious fine dining restaurants. His tenure has took him from the west coast to the east coast, and now he’s back doing what he loves in his hometown of Oklahoma City.

Chef Peter will manage the kitchen operations of Bluehorn Restaurant & Steakhouse. He will train and oversee the sous chefs, manage inventory, place food inventory orders, deal with the local food vendors, and ensure the highest customer satisfaction with the food.

Anastasia Gillette, Co-Owner

Anastasia Gillette was born and raised in Oklahoma City and has garnered over ten years in the restaurant industry as well. While in college, Anastasia worked as a hostess at one of the area’s most prestigious restaurant establishments. While there, she was eventually promoted to Front of the House Manager where she oversaw the hostesses, servers, bussers, bartenders, and reservations. Her passion always led to the beverage portion of the restaurant so she obtained her Sommelier certificate in 2019. With her wine education, Anastasia is able to cultivate an interesting and elegant wine selection for the restaurant.

Anastasia will oversee front of the house operations, maintain and ensure customer service, and manage all reservations. She will also be in charge of the bar and wine ordering, training of front of the house staff, and will manage the restaurant’s social media accounts once they are set up.

Financial Plan

Key revenue & costs.

The revenue drivers for Bluehorn Restaurant & Steakhouse will come from the food and drink menu items being offered daily.

The cost drivers will be the ingredients and products needed to make the menu items as well as the cooking materials. A significant cost driver is the fine dining equipment, serving dishes, and beer and wine glasses. Other cost drivers will be the overhead expenses of payroll for the employees, accounting firm, and cost of the advertising agency.

Funding Requirements and Use of Funds

Bluehorn Restaurant & Steakhouse is seeking $300,000 in debt financing to open its start-up restaurant. The breakout of the funding is below:

Financial Projections

Income Statement

  Balance Sheet

  Cash Flow Statement

Restaurant Business Plan FAQs

What is a restaurant business plan.

A restaurant business plan is a plan to start and/or grow your restaurant business. Among other things, it outlines your business concept, identifies your target customers, presents your marketing plan and details your financial projections.

You can  easily complete your restaurant business plan using our Restaurant Business Plan Template here .

What Are the Main Types of Restaurants?

There are many types of restaurant businesses. Restaurants can range in type from fast food, fast casual, moderate casual, fine dining, and bar and restaurant types. Restaurants also come in a variety of different ethnic or themed categories, such as Mexican restaurants, Asian restaurants, American, etc.  Some restaurants also go mobile and have food trucks.

How Do You Get Funding for Your Restaurant Business Plan?

Restaurant businesses are most likely to receive funding from banks. Typically you will find a local bank and present your business plan to them. Another option for a restaurant business is to obtain a small business loan. SBA loans are a popular option as they offer longer loan terms with lower interest rates.

What are the Steps To Start a Restaurant Business?

1. Develop A Restaurant Business Plan - The first step in starting a business is to create a detailed restaurant business plan that outlines all aspects of the venture. This should include potential market size and target customers, the services or products you will offer, pricing strategies and a detailed financial forecast.  

2. Choose Your Legal Structure - It's important to select an appropriate legal entity for your restaurant business. This could be a limited liability company (LLC), corporation, partnership, or sole proprietorship. Each type has its own benefits and drawbacks so it’s important to do research and choose wisely so that your restaurant business is in compliance with local laws.

3. Register Your Restaurant Business - Once you have chosen a legal structure, the next step is to register your restaurant business with the government or state where you’re operating from. This includes obtaining licenses and permits as required by federal, state, and local laws. 

4. Identify Financing Options - It’s likely that you’ll need some capital to start your restaurant business, so take some time to identify what financing options are available such as bank loans, investor funding, grants, or crowdfunding platforms. 

5. Choose a Location - Whether you plan on operating out of a physical location or not, you should always have an idea of where you’ll be based should it become necessary in the future as well as what kind of space would be suitable for your operations. 

6. Hire Employees - There are several ways to find qualified employees including job boards like LinkedIn or Indeed as well as hiring agencies if needed – depending on what type of employees you need it might also be more effective to reach out directly through networking events. 

7. Acquire Necessary Restaurant Equipment & Supplies - In order to start your restaurant business, you'll need to purchase all of the necessary equipment and supplies to run a successful operation. 

8. Market & Promote Your Business - Once you have all the necessary pieces in place, it’s time to start promoting and marketing your restaurant business. This includes creating a website, utilizing social media platforms like Facebook or Twitter, and having an effective Search Engine Optimization (SEO) strategy. You should also consider traditional marketing techniques such as radio or print advertising. 

Learn more about how to start a successful restaurant business:

• How to Start a Restaurant Business

Where Can I Get a Restaurant Business Plan PDF?

You can download our free restaurant business plan template PDF here . This is a sample restaurant business plan template you can use in PDF format.

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Instead of establishing a brick-and-mortar store, it is a better idea to start with a cloud kitchen.

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How Profitable is the Restaurant Business in India?

Starting a restaurant business in India requires careful planning and analysis. Entrepreneurs need to assess the restaurant business plan thoroughly to understand the profit margin dynamics and determine whether the venture is profitable in the Indian context , considering factors like restaurant profit margin India . This evaluation is crucial to gauge the potential profit in restaurant business and ensure a successful venture in the competitive market.

There are multicultural, fast food , simple casual, casual dining , fine dining, fast service, family-style, barbecue, cafe, restaurant, cooking tabletop, etc., to name a few. India's food industry offers massive market and investment prospects, equipped with technologically advanced food activities. It can be hard to effectively scale up the brick and mortar restaurant market. It needs upfront capital investment, operational costs (particularly rent) and other problems. In comparison, it is incredibly difficult to keep a restaurant alive and kicking for four or five years.

The restaurant business is much more than a glamour factor and needs a serious R&D. “Without a thorough feasibility of the target market and a proper business plan in place do not venture out into the market. Research & Development is key for each concept and that's what will set you apart from others,” Chef Ritesh Tulsian, who is a Consultant Chef & Partner at HCS Global Corp.

How Easy it is to Reach the Breakeven Point?

For any business to run successfully, it is utmost important to reach break-even in a calculated and and designated timeframe. Several examples are the testimony to the fact that multiple restaurants shut their shops every year.

“Do not expect an operational break-even in the first six months of your operations irrespective of the type or scale of your restaurant. Expecting ROI in its first year of operation is not feasible. Topline won't reach magical numbers in the first quarter of the business ever. It takes time and effort,” Chef Tulsian mentioned. One can’t run a business with a quirky ambiance and innovative ideas. He/she have to earn sustainable profit to keep up with all the costs involved.

“There are tons of hidden expenditures involved no matter how much you’ve got your financial analysis on point. We expected to break even within four to six months but courtesy to the lockdown your BEP is not always accurate so if you’re one of those who’s investing their capital via loans or borrowed funds you might as well reconsider. You really need to brace yourself financially while running an f&b business,” Palak Shah, Founder, Plush Café in Mumbai.

Is Restaurant Business Profitable in India?

Owners need to understand the difference between investment and cost . Saving money on cheap infrastructure results in higher operational costs. For a new brand it roughly takes six to seven months to make profits excluding the capital costs.

“This business will only start making money once your brand value is created in the mind of the buyer. One can start making money from the 6th month of operation provided they have invested enough time and effort in keeping the operations in check and given time for brand build up. Without recognition the business won't sell at all,” Chef Tulsian commented.

Also to generate higher returns one has to keep re-engineering the business model time and again. People buy concepts and not just the product.  In today's time increasing the valuation of the company / brand is most important and that is why one needs to look at setting up their brands across multiple locations rather than concentrate on being just a local favourite. Bigger the company valuation, bigger the returns in the long run.

High return on investment also depends on the segment one is entering into. Explaining further with example, Nikita Poojari, Owner, Shiv Sagar Food and Resort Pvt Ltd. said ,”For eg, a QSR might not have high returns but they work on volume. On the other hand ,a restaurant bar will make higher profits. If the restaurant is doing well , within six months one can make money.”

Major Factors to Consider

• Real Estate has always been the biggest factor in affecting the bottom line of the restaurant business. “Sky high rentals have been the major set back for the restaurant industry. Without a back up of at least a year's working capital is another reason why restaurants fail,” Chef Tulsian stated.
• Incompetent labour and poor infrastructure also results in business growth as consistency and hospitality are key for business development. “Major factors include the quality and skill set of employees, be it cooks and chefs, delivery partners or even the packaging partners. Every little thing matters these days and is a variable in determining the success of the business,” Kewal Ahuja, Founder, SGF India Restaurant commented.
• Food consistency, payment of vendors on time, innovation, check for pilferage are other things that ensure profitability. Niketa Sharma, Founder, Masaledaar Modern India Kitchen and Bar suggests that one should do agreements with landlords keeping in mind the current times as lockdown provides flexibility for rentals. Staff to be trained as per sanitizer process and social distancing, only depending on delivery will not be enough, Sharma further added.

Business Factors Will Evolve Over Time

Kewal Ahuja has been into the restaurant business for more than a decade now. Seeing the changing scenario, he suggests that this is the right time to enter the hospitality business.

“Nowadays food from the outside is the one connection people have with their pre-covid or normal lives. There is an all-time increase in orders hence the revenue prospects are good,” he stated. In terms of staff and delivery partners, today the industry have more people available and willing to work than before. 

“Earlier a restaurateur could not expect immediate profits and sales. It took time to establish presence, name and trust in the market. It took considerable time to expand business in various locations. But today with Multinational restaurant aggregators and food delivery companies, restaurants and eating outlets have a wider platform and market to cater to. The time it takes for a new business to get orders has reduced significantly,” Ahuja added.

Dealing with the Trimmed Margin

Margins in the restaurant business have gradually trimmed down due to multiple reasons. To penetrate the market by acquiring new customers, popular third-party platforms such as Swiggy, Zomato and UberEats have embedded the concept of discounts and freebies in the mind of all customers.

The days of calling a restaurant directly and ordering from them over call are almost done with. Delivery space has been monopolized by giants such as Swiggy and Zomato. Restaurants tie-up with online food aggregators to increase visibility and quickly grow business. To their credit, they have grown the overall market cap as well but at the same time made it difficult for a traditional or legacy restaurant business to deliver on its own. Commissions absorb anywhere between 10 percent to 30 percent of the revenue (and thus margins) depending upon the delivery partner and deal.

“At the end of the day it’s a business so you need to know your numbers. Being at the right market with the right price and audience is a must” Poojari feels.

Frequently Asked Questions

1. Is the Restaurant Business Profitable in India?

Ans. The profitability of a restaurant business in India depends on various factors, and there's no guaranteed success. However, with proper planning, execution, and continuous adaptation, it can be a rewarding venture.

2. What is the Average Restaurant Profit Margin in India?

Ans:  Reported data suggests the average profit margin for restaurants in India can range from 5% to 15%. However, it's crucial to conduct your own research and consider factors specific to your restaurant concept and location.

3. Is the Food Business Profitable in India?

Ans.  The food industry in India is vast and encompasses various segments, each with its own profitability potential. While the restaurant business can be competitive, other sectors like food processing or packaged food might offer different opportunities and profit margins.

In summary, when considering the profitability of the restaurant business in India , understanding factors like restaurant profit margins and the effectiveness of a business plan is crucial. Evaluating whether the restaurant business is profitable in India involves careful analysis of the local market landscape. By focusing on profit margins and developing a strong business plan, restaurateurs can navigate the challenges and seize the opportunities within the industry. Despite the obstacles, there is significant potential for profit in the restaurant business in India for those who are well-prepared and dedicated to success.

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How to Start Restaurant Business in India

Updated on : May 13th, 2022

13 min read

The restaurant business is one of the best options for Indian entrepreneurs as it is one of the biggest service sectors in India. The restaurant business comes under the scope of the retail food segment. Different types of restaurants are available in India, depending on the preparation methods, menu style, and pricing. The word restaurant includes a cafe, fine dining, casual dining, ethnic, fast-casual, fast food, quick service, barbeque, family-style, tabletop cooking, pub, etc.

The highest growing restaurant segments in India are casual dining, quick service restaurant, fine dining, and cafe. Apart from these the bar, pub, sports bar, lounges and clubs are also getting popular these days.

Restaurant Industry In India

The Indian restaurant industry sector is one of the fastest-growing markets in the world. As per the National Restaurant Association of India (NRAI) report, the restaurant market is expected to reach Rs.5.99 lakh crore by 2022-23, growing at a compounded annual growth rate of 9%. Despite the challenges and hardships that the restaurant owners faced due to the Covid-19 pandemic, opening a restaurant would bring new opportunities for budding restaurant owners.

Process Involved in Starting Restaurant Business

The following process is involved in starting a restaurant business in India:

Decide the Restaurant Concept

Before starting a restaurant, the first thing to do is to determine its concept. Determining the restaurant concept depends on the investment capacity and local demographics’ eating habits. A restaurant owner can choose any of the following types of restaurant concept depending on the vision and funding:

• Fine dining restaurants
• Casual dining restaurants

Once the business owner decides on the restaurant concept, he/she must decide on the restaurant theme, interior design, cuisine and menu. The restaurant interior design, service style, menu and theme must be in sync.

However, deciding on the theme and interiors is not required when a business owner starts a dark kitchen. Dark kitchens are online restaurants only with no establishment. In dark kitchens set up, an individual prepares meals in a kitchen and sells them online. Opening a dark kitchen is a good option as the set-up cost is less, and people prefer to order food online.

Create a Business Plan

After deciding on the concept, business owners should prepare business plans for their restaurants. A business plan will help the restaurant owner to plan the future development of the restaurant business and present it to any potential investor.

The business owner must also consider whether to initiate a franchise business or start his/her own restaurant. Beginning a franchise business is easy compared to establishing a restaurant. However, when an individual has his/her own restaurant, he/she need not share profit and spend on franchise fees. The financial analysis and business plan play a significant role in helping to decide whether to start an own restaurant or take up franchising of a restaurant. 

Evaluate Restaurant Costs

A business owner must have a good idea of the operational and set-up costs involved in starting a restaurant. Irrespective of the type of business, a business owner will have to bear the following costs: 

• Food cost – It is the cost of the raw materials used to prepare a dish. Ideally, the food cost should be about 30% of the menu price. 
• Labour costs – Labour cost is a critical restaurant cost that increases the expenditures while opening a restaurant. 
• Rent – The rent of the restaurant premises is affected by its location. However, it should not exceed 10% of the total revenues.
• Interiors – The restaurant owner can decide on the interiors based on the budget and concept. 
• Kitchen equipment – Initially, the restaurant owners must bear the costs of purchasing quality equipment, but they always recover these costs in the long run. 
• License – Obtaining the various licenses and registrations required for a restaurant business is essential for the restaurant. The fee to be paid to obtain licenses depends on the establishment type.
• POS system – The modern technology POS (Point Of Sale) system is required to smoothen restaurant operations and payments. 
• Marketing – Restaurant owners should ideally spend 1-2% of their revenues on marketing the restaurants. They can use offline and online marketing modes. 

Get Investments and Funds for the Restaurant 

One of the most important things to consider before opening a restaurant business is getting the required investments and funds. A restaurant owner must decide on the capital needed to start a restaurant. The set-up cost of a decent-sized restaurant may take Rs.15 lakh to Rs.1.6 crore, depending on the menu, location, and other factors. 

A restaurant owner can obtain funds to start a restaurant through the following ways:

• Self-funding – When a business owner has accumulated the required funds to open a restaurant, he/she can start the restaurant with those funds instead of taking loans. It is also a good option to open a restaurant in partnership with others since it reduces investment risk.
• Loan – A business owner can take a loan from a bank or financial institution to start a restaurant. However, obtaining a loan from a bank includes hassles as they need someone who can underwrite the loan and provide a guarantee or collateral.
• Venture capitalists and angel funding – A business owner can approach venture capitalists or angel investors in the restaurant business to invest in his/her restaurant. However, getting investors on board is difficult, especially when it is a first-time venture. Investors generally look at the restaurant’s growth potential and scalability of the business model. This option is good when the restaurant is already established and is earning revenue.

Decide the Name and Location of the Restaurant

Another important aspect that a restaurant owner needs to consider is the name and location of the restaurant. A restaurant owner should give the name, logo and premises address when applying for business registrations and licensing. The name and logo of a restaurant provide the first impression to the customers. Thus, it is essential to decide on a catchy and simple name. Also, the owners need to ensure that the restaurant name is marketable and has domain availability.

Before choosing the restaurant’s location, the owner should identify competitors in that area, study their progress and understand their business model. Evaluating the competition will help owners understand the customer base in that area, preferences and pocket size. It is always better to locate a restaurant in an easily accessible and visible place. Usually, the metro city areas are the best locations to start a restaurant business. 

Get Required Registrations and Licenses 

A business owner must obtain the required registrations and licenses to run a business. The cost of obtaining these registrations and licenses varies depending on the size of the restaurant. It is better to apply for the permits early as they take a lot of time to get approved. Without obtaining the licenses, an owner cannot start a restaurant business. All the licenses and registrations applicable to a restaurant business in India are explained below in detail.

Hire the Required Workforce

Skilled and experienced employees need to be hired to run the restaurant properly. There are different types of staff required in a restaurant, which are as follows:

• Kitchen staff – The kitchen staff comprises the cooks, support staff, food preparation staff, etc. 
• Service staff – The delivery staff, waiters, housekeeping staff, etc., are the service staff. They need to have good communication skills since they interact with customers and must be trained appropriately.
• Management staff – The restaurant’s chef, manager, cashier, store manager, etc., are the management staff, and they need to be experienced with adequate education for the role.

Design the Menu

The restaurant’s main product is its food. The food of a restaurant can make or break the business. Thus, the menu should be carefully designed. A smartly designed menu can significantly impact the restaurant’s food costs. The menu should comprise items that use local or readily available items and food that can be prepared quickly. 

Restaurant owners must decide on the cuisine they want to serve and choose the menu items based on the audience’s demands. The menu should be designed in a way that lures customers to spend. Offering a combo or thali meals menu is very popular in India. 

Arrange for Delivery Service

A food delivery service is a crucial restaurant business component, especially after the Covid-19 outbreak. Customers now prefer to order food online rather than go out and eat in restaurants. Zomato and Swiggy, two popular online food delivery platforms in India, experienced massive growth in 2020, even during the lockdown.

Thus, a business owner must arrange and plan an online delivery strategy. A business owner can hire a delivery team or partner with an online food delivery platform. When the restaurant has its own delivery staff, the owner will have control over who is delivering the food and how and when it is delivered. 

However, partnering with online food delivery platforms helps a restaurant access a wide range of customers and visibility. It also helps restaurant businesses that cannot afford a decent-sized delivery team.

Technology and Marketing of the Restaurant

A restaurant’s digital infrastructure is a significant aspect of maintaining and operating a restaurant. A versatile POS system with a range of modern digital technologies has simplified restaurant operations. Technology also plays a vital role in marketing the restaurant. A restaurant owner can use the following marketing strategies to gain customers:

• Print media – Print media is promoting the restaurant through newspapers, pamphlets, brochures, etc. Giving advertisements in local newspapers can help to attract a crowd.
• Social media – Social media makes it easy to reach a large crowd in a short period. A restaurant owner can advertise or create restaurant accounts and post content related to the restaurant on social media handles like Facebook, Instagram, Google Adwords, etc.
• Bloggers meet – Restaurant owners can reach a large number of audiences with the help of food bloggers. It is a popular trend to arrange for bloggers’ meetups and invite food bloggers to rate dishes and write a review on their personal blogs.
• Influencer marketing – Influencer marketing is asking influencers to promote the restaurant to their audiences. There are many influencers with large audiences. Their followers engage with them regularly and trust their opinion. 

Registrations Required for Restaurant Business in India

A restaurant owner needs to obtain different licences and registrations to run a restaurant business in India. The required registrations and licences are as follows:

Registering Business Entity

To start a restaurant, the owner must first choose the business entity. Business owners must decide whether to start the restaurant alone as a proprietorship firm or in partnership with others as a partnership firm. They may also establish a private limited company. 

Instead of choosing a proprietorship or partnership firm, it is beneficial for restaurant owners to choose the One Person Company (OPC) or Limited Liability Partnership (LLP) business structure. A sole proprietorship or partnership firm does not have a separate legal entity status and thus is difficult to obtain funds compared to OPC and LLP. When the owner plans to establish a chain of restaurants or create a franchising model, a private limited company structure is recommended.

FSSAI License

The Food Safety and Standards (FSS) Act, 2006, mandates a Food Business Operator (FBO) to obtain an FSSAI license. It is required for anyone involved in the processing, production, distribution, import and sale of food products within India. The FSSAI license means that the restaurant’s food items meet the government’s food safety standards.

Thus, all restaurants, including dark and cloud kitchens, must compulsorily obtain an FSSAI registration or license from the Food Safety and Standards Authority of India (FSSAI). The turnover and manufacturing capacity of the restaurant business determines whether the restaurant needs to obtain an FSSAI registration or FSSAI licence. 

Shop and Establishment Act Registration

The Shop and Establishment Act Registration is regulated by the Department of Labour of the state. The Shop and Establishment Act regulates any premises where a trade, business or profession is carried out. Thus, all restaurants must apply for and obtain a Shop and Establishment Act Registration. It is issued by the State Chief Inspector of the Department of Labour.

Business License

The restaurant must mandatorily obtain a trade license from the municipal corporation. The municipal corporation can shut down restaurants when they do not have a trade license. Thus, restaurant owners need to apply for and renew their trade licenses every year. A business owner also needs to obtain a No Objection Certificate (NOC) from at least three neighbours. When a restaurant provides liquor to its customer, it must also obtain a liquor license from the Local Excise Commissioner. A NOC from the fire department is also a must for any food business.

Eating House License

Any place that offers beverages and food for public consumption is an eating house. Since a restaurant business is an eating house, it must compulsorily obtain an eating house license. An eating house license can be obtained from the Licensing Police Commissioner of the respective city where the restaurant is located.

GST Registration

Restaurants in India are required to register under GST mandatorily. GST registration is state-specific. Thus, if a restaurant has outlets in different states, it needs to have a separate GST registration for each state. 

Trademark Registration

When a business owner plans to open a chain of restaurants or invests a significant amount of money and time into branding, it is recommended to obtain trademark registration for the restaurant name or brand. Though trademark registration is not mandatory, it is recommended as it will protect the restaurant name or brand from third parties. Third parties cannot open a restaurant with the same name or brand that has a trademark registration. It deters the use of branding by competitors.

Disclaimer: The materials provided herein are solely for information purposes. No attorney-client relationship is created when you access or use the site or the materials. The information presented on this site does not constitute legal or professional advice and should not be relied upon for such purposes or used as a substitute for legal advice from an attorney licensed in your state.

About the Author

Mayashree Acharya

I am an advocate by profession and have a keen interest in writing. I write articles in various categories, from legal, business, personal finance, and investments to government schemes. I put words in a simplified manner and write easy-to-understand articles. Read more

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How to Write a Restaurant Business Plan

Many or all of the products featured here are from our partners who compensate us. This influences which products we write about and where and how the product appears on a page. However, this does not influence our evaluations. Our opinions are our own. Here is a list of our partners and here's how we make money .

When starting a business—no matter what type of business that may be—a business plan is essential to map out your intentions and direction. That’s the same for a restaurant business plan, which will help you figure out where you fit in the landscape, how you’re going to differ from other establishments around you, how you’ll market your business, and even what you’re going to serve. A business plan for your restaurant can also help you later if you choose to apply for a business loan .

While opening a restaurant isn’t as risky as you’ve likely heard, you still want to ensure that you’re putting thought and research into your business venture to set it up for success. And that’s where a restaurant business plan comes in.

We’ll go through how to create a business plan for a restaurant and a few reasons why it’s so important. After you review the categories and the restaurant business plan examples, you can use the categories to make a restaurant business plan template and start your journey.

Why you shouldn’t skip a restaurant business plan

First-time restaurateurs and industry veterans alike all need to create a business plan when opening a new restaurant . That’s because, even if you deeply understand your business and its nuances (say, seasonal menu planning or how to order correct quantities), a restaurant is more than its operations. There’s marketing, financing, the competitive landscape, and more—and each of these things is unique to each door you open.

That’s why it’s so crucial to understand how to create a business plan for a restaurant. All of these things and more will be addressed in the document—which should run about 20 or 30 pages—so you’ll not only have a go-to-market strategy, but you’ll also likely figure out some things about your business that you haven’t even thought of yet.

Additionally, if you’re planning to apply for business funding down the line, some loans—including the highly desirable SBA loan —actually require you to submit your business plan to gain approval. In other words: Don’t skip this step!

How much do you need?

with Fundera by NerdWallet

We’ll start with a brief questionnaire to better understand the unique needs of your business.

Once we uncover your personalized matches, our team will consult you on the process moving forward.

How to write a restaurant business plan: Step by step

There’s no absolute format for a restaurant business plan that you can’t stray from—some of these sections might be more important than others, for example, or you might find that there’s a logical order that makes more sense than the one in the restaurant business plan example below. However, this business plan outline will serve as a good foundation, and you can use it as a restaurant business plan template for when you write your own.

Executive summary

Your executive summary is one to two pages that kick off your business plan and explain your vision. Even though this might seem like an introduction that no one will read, that isn’t the case. In fact, some investors only ask for the executive summary. So, you’ll want to spend a lot of time perfecting it.

Your restaurant business plan executive summary should include information on:

Mission statement: Your goals and objectives

General company information: Include your founding date, team roles (i.e. executive chef, sous chefs, sommeliers), and locations

Category and offerings: What category your restaurant fits into, what you’re planning to serve (i.e. farm-to-table or Korean), and why

Context for success: Any past success you’ve had, or any current financial data that’ll support that you are on the path to success

Financial requests: If you’re searching for investment or financing, include your plans and goals here and any financing you’ve raised or borrowed thus far

Future plans: Your vision for where you’re going in the next year, three years, and five years

When you’re done with your executive summary, you should feel like you’ve provided a bird’s eye view of your entire business plan. In fact, even though this section is first, you will likely write it last so you can take the highlights from each of the subsequent sections.

And once you’re done, read it on its own: Does it give a comprehensive, high-level overview of your restaurant, its current state, and your vision for the future? Remember, this may be the only part of your business plan potential investors or partners will read, so it should be able to stand on its own and be interesting enough to make them want to read the rest of your plan.

Company overview

This is where you’ll dive into the specifics of your company, detailing the kind of restaurant you’re looking to create, who’s helping you do it, and how you’re prepared to accomplish it.

Your restaurant business plan company overview should include:

Purpose: The type of restaurant you’re opening (fine dining, fast-casual, pop-up, etc.), type of food you’re serving, goals you have, and the niche you hope to fill in the market

Area: Information on the area in which you’re opening

Customers: Whom you’re hoping to target, their demographic information

Legal structure: Your business entity (i.e. LLC, LLP, etc.) and how many owners you have

Similar to your executive summary, you won’t be going into major detail here as the sections below will get into the nitty-gritty. You’ll want to look at this as an extended tear sheet that gives someone a good grip on your restaurant or concept, where it fits into the market, and why you’re starting it.

Team and management

Barely anything is as important for a restaurant as the team that runs it. You’ll want to create a section dedicated to the members of your staff—even the ones that aren’t yet hired. This will provide a sense of who is taking care of what, and how you need to structure and build out the team to get your restaurant operating at full steam.

Your restaurant business plan team and management section should have:

Management overview: Who is running the restaurant, what their experience and qualifications are, and what duties they’ll be responsible for

Staff: Other employees you’ve brought on and their bios, as well as other spots you anticipate needing to hire for

Ownership percentage: Which individuals own what percentage of the restaurant, or if you are an employee-owned establishment

Be sure to update this section with more information as your business changes and you continue to share this business plan—especially because who is on your team will change both your business and the way people look at it.

Sample menu

You’ll also want to include a sample menu in your restaurant business plan so readers have a sense of what they can expect from your operations, as well as what your diners can expect from you when they sit down. This will also force you to consider exactly what you want to serve your diners and how your menu will stand out from similar restaurants in the area. Although a sample menu is in some ways self-explanatory, consider the following:

Service : If your brunch is as important as your dinner, provide both menus; you also might want to consider including both a-la-carte and prix fixe menus if you plan to offer them.

Beverage/wine service: If you’ll have an emphasis on specialty beverages or wine, a separate drinks list could be important.

Seasonality: If you’re a highly seasonal restaurant, you might want to consider providing menus for multiple seasons to demonstrate how your dishes (and subsequent purchasing) will change.

Market analysis

This is where you’ll begin to dive deeper. Although you’ve likely mentioned your market and the whitespace you hope to address, the market analysis section will enable you to prove your hypotheses.

Your restaurant business plan market analysis should include:

Industry information: Include a description of the restaurant industry, its size, growth trends, and other trends regarding things such as tastes, trends, demographics, structures, etc.

Target market: Zoom in on the area and neighborhood in which you’re opening your restaurant as well as the type of cuisine you’re serving.

Target market characteristics: Describe your customers and their needs, how/if their needs are currently being served, other important pieces about your specific location and customers.

Target market size and growth: Include a data-driven section on the size of your market, trends in its growth, how your target market fits into the industry as a whole, projected growth of your market, etc.

Market share potential: Share how much potential there is in the market, how much your presence will change the market, and how much your specific restaurant or restaurant locations can own of the open market; also touch on any barriers to growth or entry you might see.

Market pricing: Explain how you’ll be pricing your menu and where you’ll fall relative to your competitors or other restaurants in the market.

Competitive research: Include research on your closest competitors, how they are both succeeding and failing, how customers view them, etc.

If this section seems like it might be long, it should—it’s going to outline one of the most important parts of your strategy, and should feel comprehensive. Lack of demand is the number one reason why new businesses fail, so the goal of this section should be to prove that there is demand for your restaurant and show how you’ll capitalize on it.

Additionally, if market research isn’t your forte, don’t be shy to reach out to market research experts to help you compile the data, or at least read deeply on how to conduct effective research.

Marketing and sales

Your marketing and sales section should feel like a logical extension of your market analysis section, since all of the decisions you’ll make in this section should follow the data of the prior section.

The marketing and sales sections of your restaurant business plan should include:

Positioning: How you’ll describe your restaurant to potential customers, the brand identity and visuals you’ll use to do it, and how you’ll stand out in the market based on the brand you’re building

Promotion: The tools, tactics, and platforms you’ll use to market your business

Sales: How you’ll convert on certain items, and who/how you will facilitate any additional revenue streams (i.e. catering)

It’s likely that you’ll only have concepts for some of these elements, especially if you’re not yet open. Still, get to paper all of the ideas you have, and you can (and should) always update them later as your restaurant business becomes more fully formed.

Business operations

The business operations section should get to the heart of how you plan to run your business. It will highlight both internal factors as well as external forces that will dictate how you run the ship.

The business operations section should include:

Management team: Your management structure and hierarchy, and who is responsible for what

Hours: Your hours and days of operation

Location: What’s special about your location that will get people through the door

Relationships: Any advantageous relationships you have with fellow restaurateurs, places for sourcing and buying, business organizations, or consultants on your team

Add here anything you think could be helpful for illustrating how you’re going to do business and what will affect it.

Here, you’ll detail the current state of your business finances and project where you hope to be in a year, three years, and five years. You’ll want to detail what you’ve spent, what you will spend, where you’ll get the money, costs you might incur, and returns you’ll hope to see—including when you can expect to break even and turn a profit.

Financial statements: If you’ve been in business for any amount of time, include existing financial statements (i.e. profit and loss, balance sheet, cash flow, etc.)

Budget: Your current budget or a general startup budget

Projections: Include revenue, cash flow, projected profit and loss, and other costs

Debt: Include liabilities if the business has any outstanding debt or loans

Funding request: If you’re requesting a loan or an investment, lay out how much capital you’re looking for, your company’s valuation (if applicable), and the purpose of the funding

Above all, as you’re putting your financials together, be realistic—even conservative. You want to give any potential investors a realistic picture of your business.

Feel like there are other important components but they don't quite fit in any of the other categories (or make them run too long)? That’s what the restaurant business plan appendix section is for. And although in, say, a book, an appendix can feel like an afterthought, don’t ignore it—this is another opportunity for you to include crucial information that can give anyone reading your plan some context. You may include additional data, graphs, marketing collateral (like logo mockups), and more.

Start Your Dream Business

The bottom line

Whether you’re writing a restaurant business plan for investors, lenders, or simply for yourself and your team, the most important thing to do is make sure your document is comprehensive. A good business plan for a restaurant will take time—and maybe a little sweat—to complete fully and correctly.

One other crucial thing to remember: a business plan is not a document set in stone. You should often look to it to make sure you’re keeping your vision and mission on track, but you should also feel prepared to update its components as you learn more about your business and individual restaurant.

This article originally appeared on JustBusiness, a subsidiary of NerdWallet.

On a similar note...

Top 15 Best Small Business Ideas in Kerala for 2024: Profitable Ventures in God's Own Country

Looking to embark on your entrepreneurial journey in Kerala? Interested in discovering promising small business ideas for the region? You’re in the right place!

Kerala, known for its natural beauty and vibrant culture, offers a diverse range of opportunities for aspiring business owners. Whether you’re considering tourism-related ventures, agricultural innovations, or eco-friendly initiatives, this state has a wealth of possibilities.

But before we delve into the ideal business ideas for Kerala, let’s explore why these specific ventures are thriving in this picturesque state.

Kerala, often referred to as “God’s Own Country,” boasts lush landscapes and a flourishing tourism industry. Its commitment to sustainable practices, along with a growing interest in organic farming and unique local products, has created a fertile ground for entrepreneurial success.

Stay tuned as we uncover the most profitable and promising small business models tailor-made for Kerala’s unique environment and culture.

What makes Kerala an excellent business location?

Several factors make Kerala an attractive destination for businesses:

Favorable Business Environment:

• High Literacy Rate: Kerala boasts the highest literacy rate in India (96.2%), indicating a readily available skilled workforce.
• Ease of Doing Business: Kerala ranks among the top states in India for ease of doing business, with simplified regulations and efficient administrative procedures.
• Stable Political Environment: Kerala enjoys a stable political climate, fostering long-term business confidence and investor interest.
• Strong Infrastructure: The state has a well-developed infrastructure network, including modern transportation links, reliable power supply, and high-speed internet connectivity.

Thriving Economy:

• Growing Economy: Kerala has a robust and diversified economy, with a GDP growth rate exceeding the national average.
• Emerging Industries: The state is witnessing significant growth in key sectors like IT, tourism, healthcare, and biotechnology, offering lucrative opportunities for businesses.
• Startup Ecosystem: Kerala has a burgeoning startup ecosystem, encouraged by government initiatives and a supportive environment for entrepreneurs.
• Infrastructure: Kerala has excellent infrastructure, including the Cochin Port Trust setting up port-based SEZs in Puthuvypeen and Vallarpadam, and the state-of-the-art Cochin International Airport.

High Quality of Life:

• Social Development: Kerala ranks high on social development indicators like healthcare, education, and gender equality, creating a healthy and productive workforce.
• Low Crime Rate: The state enjoys a low crime rate, providing a safe and secure environment for businesses and their employees.
• Natural Beauty: Kerala’s stunning natural beauty, including beaches, hills, and backwaters, attracts tourists and creates a positive image for businesses.

Examples of Companies Thriving in Kerala:

• UST Global: A leading IT services company with a global presence and a major development center in Kochi, Kerala.
• Muthoot Finance: One of India’s largest gold loan companies, headquartered in Kerala and expanding rapidly.
• Leela Group: A renowned hospitality chain with several luxury resorts in Kerala, attracting tourists and contributing to the state’s economy.
• Kerala Ayurveda: A leading provider of Ayurvedic treatments and products, showcasing the state’s expertise in traditional healthcare.
• Malabar Gold & Diamonds: A popular jewelry retailer with roots in Kerala and a significant global presence.

Statistics:

• Kerala’s GDP: The Gross State Domestic Product (GSDP) of Kerala for 2022-23 is projected to be ₹9,99,643 crore (US$131.98 billion) .
• Kerala’s GDP growth rate: The growth rate for 2022-23 is projected to be 10.8% .
• Kerala’s unemployment rate: The unemployment rate in Kerala was 6.72% in March 2023.
• FDI inflow into Kerala: I couldn’t find the exact FDI inflow into Kerala for 2021-22.
• Number of startups in Kerala: As of 2023, Kerala has around 4,100+ startups .

Government support:

The Kerala State Industrial Development Corporation (KSIDC) aims to convert Kerala into a preferred agro processing, health services, knowledge-based industries, and services hub. The state government is also focusing on improving the Ease of Doing Business ranking.

Top 15+ Small Business Ideas in Kerala with High Profit Potential

Here are some small business ideas in Kerala with low investment and high potential for profitability:

1. Agarbatti Making:

Agarbatti making is a small business idea with low investment and high potential for profitability. Incense sticks, also known as agarbattis, are used in almost every household in India, making this a lucrative business opportunity.

The demand for agarbattis is high, especially during religious festivals and ceremonies. To start an agarbatti making business, you will need raw materials such as bamboo sticks, charcoal, aromatic oils, and perfumes.

The manufacturing process involves dipping the bamboo sticks into a mixture of fragrant oils and perfumes, which are then dried and packaged for sale.

Marketing and distribution can be done through local retailers, wholesalers, or online platforms.

2. Clothing Boutique:

Starting a small clothing boutique can be a profitable venture in Kerala. With a unique collection of clothing and a well-designed store, you can attract customers who are looking for trendy and fashionable clothing options.

It is important to conduct market research to identify the target audience and their preferences. You can source clothing from local designers, manufacturers, or wholesalers.

Creating an online presence through social media platforms and e-commerce websites can also help reach a wider customer base.

Providing personalized customer service and maintaining a good inventory management system are key factors for success in this business.

3. Interior Designing:

As India’s real estate market continues to grow, the demand for interior designers is on the rise. Starting an interior designing business in Kerala can be a profitable venture.

To succeed in this field, you need to have a creative eye, a good understanding of design principles, and the ability to work within a budget.

Offering services such as space planning, color consultation, furniture selection, and decor styling can help attract clients.

Building a portfolio of your work and networking with architects, builders, and real estate developers can also help in getting projects.

It is important to stay updated with the latest design trends and technologies to provide innovative solutions to clients.

4. Affiliate Marketing:

Affiliate marketing is a type of marketing where you earn a commission for promoting and selling products or services.

It is a low-investment business idea that can be done online. To start an affiliate marketing business, you need to choose a niche or industry that you are interested in and have knowledge about.

You can then join affiliate programs of companies that offer products or services related to your chosen niche.

By promoting these products or services through your website, blog, or social media channels, you can earn a commission for each sale or lead generated through your affiliate links.

It is important to build a strong online presence and create valuable content to attract and engage your target audience.

5. Candle Making:

Candle making is another small business idea with low investment and high potential for profitability. Scented candles are in high demand for various occasions such as weddings, birthdays, and restaurants.

To start a candle making business, you will need raw materials such as wax, wicks, fragrance oils, and molds.

The manufacturing process involves melting the wax, adding fragrance oils, pouring the mixture into molds, and allowing it to cool and solidify.

You can create unique candle designs and scents to differentiate your products in the market. Marketing and distribution can be done through local retailers, online platforms, or direct sales to customers.

6. Event Management:

Event management is a growing industry, and people are increasingly looking for professional event planning services for various occasions such as weddings, corporate events, and parties.

Starting an event management business in Kerala can be a profitable venture. To succeed in this field, you need to have excellent organizational and communication skills, attention to detail, and the ability to work under pressure.

Offering services such as venue selection, event planning, decoration, catering, and entertainment can help attract clients.

Building a network of vendors and suppliers and maintaining good relationships with them is crucial for the smooth execution of events.

Creating a portfolio of successful events and leveraging social media platforms for marketing can also help in attracting clients.

7. Grocery Store:

Starting a grocery store, especially a digital grocery store, can be a profitable business opportunity in Kerala. With the ongoing pandemic, people are increasingly opting for online shopping for their daily essentials.

To start a digital grocery store, you will need to create an e-commerce website or partner with existing online platforms. It is important to have a wide range of products, competitive pricing, and efficient delivery systems to attract and retain customers.

Building a strong online presence through social media marketing and providing excellent customer service are key factors for success in this business.

Obtaining the necessary licenses and registrations, as well as ensuring compliance with food safety regulations, is essential for running a grocery store.

Read More: Start a Successful Online Grocery Store : How-to Guide

8. Real Estate:

Operating in the real estate industry can be a profitable business in Kerala. However, it requires relevant experience and a governmental license.

Real estate businesses can involve buying, selling, renting, or developing properties. To succeed in this field, you need to have a good understanding of the local real estate market, property valuation, legal procedures, and customer preferences.

Building a network of clients, real estate agents, and developers can help in finding potential buyers or sellers. It is important to stay updated with the latest market trends and regulations to provide valuable advice to clients.

9. Spice Farming:

Kerala is known for its spice production, making spice farming a viable business opportunity. Spices such as pepper, cardamom, cinnamon, and cloves are in high demand in the domestic and international markets.

To start a spice farming business, you need to acquire suitable land, preferably in areas suitable for spice cultivation. It is important to have knowledge of cultivation techniques, soil management, pest control, and harvesting methods specific to each spice crop.

Building relationships with spice traders, exporters, and wholesalers can help in marketing and selling your produce. Proper storage and packaging of spices are essential to maintain their quality and maximize profitability.

10. Spice Trading:

Trading spices can be a profitable business in Kerala, given the state’s reputation as a major spice producer. To start a spice trading business, you need to establish contacts with spice farmers, wholesalers, and exporters.

It is important to have knowledge of different spice varieties, their quality parameters, and market trends. Building a network of buyers and sellers, both domestically and internationally, can help in sourcing and selling spices.

Proper storage and packaging of spices are crucial to maintain their quality and meet market standards. Marketing and distribution can be done through local markets, spice auctions, or online platforms.

11. Banana Chips:

Banana chips are a popular snack in Kerala and can be started as a small business with low investment. To start a banana chips business, you will need raw materials such as raw bananas, cooking oil, and spices for flavoring.

The manufacturing process involves slicing the bananas, frying them in oil, and seasoning them with spices. Packaging and branding are important aspects to attract customers.

Marketing and distribution can be done through local retailers, supermarkets, or online platforms. It is important to maintain quality standards and ensure proper hygiene during the manufacturing process.

12. Handicrafts:

Handicrafts are in demand and can be started as a small business with minimal investment. Kerala has a rich tradition of handicrafts, including wood carvings, coir products, pottery, and traditional artwork.

To start a handicrafts business, you need to have skills in a specific craft or collaborate with local artisans. Creating unique and high-quality products can help differentiate your business in the market.

Marketing and distribution can be done through local handicraft stores, exhibitions, or online platforms. Building a network of customers, interior designers, and gift shops can help in selling your products.

Read More: 50+ Top Business ideas for women Entrepreneurs at Home

13. Tea Production:

Kerala is a major tea-producing state in India, making tea production a viable business opportunity. To start a tea production business, you need to acquire suitable land for tea cultivation and obtain the necessary licenses and registrations.

It is important to have knowledge of tea cultivation techniques, processing methods, and quality standards. Building relationships with tea buyers, wholesalers, and exporters can help in marketing and selling your tea.

Proper packaging and branding are crucial to attract customers. Marketing and distribution can be done through local markets, tea auctions, or online platforms.

14. Eco-friendly Products:

With growing environmental consciousness, businesses focusing on eco-friendly products are in high demand. Starting a business that offers eco-friendly products such as reusable bags, organic skincare products, biodegradable packaging, or sustainable clothing can be a profitable venture.

To succeed in this field, it is important to have a deep understanding of eco-friendly materials, manufacturing processes, and consumer preferences. Building a strong brand identity and marketing your products as environmentally friendly can help attract customers.

Online platforms, eco-friendly stores, and collaborations with like-minded businesses can be effective distribution channels.

15. Coconut-based Products:

Kerala is known for its coconut production, making coconut-based products a profitable business opportunity. Coconut oil, coconut milk, coconut flour, and coconut-based snacks are in high demand.

To start a coconut-based products business, you need to source coconuts from local farmers or wholesalers. Depending on the product, you may need additional raw materials and equipment for processing.

Marketing and distribution can be done through local retailers, supermarkets, or online platforms. Creating a strong brand identity and highlighting the health benefits of coconut-based products can help attract customers.

16. Pet Care Services:

As more people own pets, pet care services are in high demand. Starting a pet care services business in Kerala can be a profitable venture. Services such as pet grooming, pet sitting, dog walking, and pet training are sought after by pet owners.

To succeed in this field, it is important to have a genuine love for animals and knowledge of pet care techniques. Building a network of veterinarians, pet supply stores, and pet owners can help in getting clients.

Providing excellent customer service and ensuring the well-being of pets are key factors for success in this business. Creating a strong online presence through social media platforms and word-of-mouth referrals can help in reach a lot.

How To Start a Business In Kerala?

Starting a Business in Kerala: A Step-by-Step Guide

Here’s a comprehensive guide on how to start a business in Kerala:

1. Define Your Business Idea:

• Identify a gap in the market: Research the local market to identify underserved needs or opportunities.
• Consider your skills and interests: Choose a business idea that aligns with your expertise and passion.
• Evaluate the feasibility: Analyze the market demand, competition, and financial viability of your idea.

2. Choose a Business Structure:

• Sole Proprietorship: Simplest structure, but unlimited liability.
• Partnership: Suitable for multiple owners, but shared responsibility.
• Limited Liability Company (LLC): Provides limited liability and flexibility.
• One Person Company (OPC): Ideal for single entrepreneurs with limited liability.

3. Register Your Business:

• Obtain a PAN Card and TAN Number: Mandatory for tax purposes.
• Register for GST: Depending on your business turnover.
• Get a Trade License: Required from the local municipal corporation.
• Open a Business Bank Account: Separate business finances from personal funds.
• Register with Kerala Startup Mission (KSUM): If your business is a startup.

4. Develop a Business Plan:

• Outline your business goals and strategies.
• Define your target market and competitive landscape.
• Project your financial forecasts and funding requirements.
• Develop a marketing and sales plan.

5. Secure Funding:

• Personal savings or investments.
• Loans from banks or financial institutions.
• Government grants or subsidies.
• Angel investors or venture capitalists.

6. Set Up Your Business Operations:

• Lease or purchase a suitable location.
• Hire and train employees.
• Acquire necessary equipment and resources.
• Implement your marketing and sales plan.
• Maintain proper financial records.

7. Comply with Legal Requirements:

• Obtain necessary licenses and permits.
• Maintain proper legal and regulatory compliance.
• File regular tax returns.

Additional Resources:

• Kerala Startup Mission (KSUM): https://startupmission.kerala.gov.in/
• Directorate of Industries and Commerce: https://industry.kerala.gov.in/
• K-Swift: https://kswift.kerala.gov.in/
• Startup India: https://www.startupindia.gov.in/

Tips for success:

• Network with other entrepreneurs and business professionals.
• Seek mentorship from experienced individuals.
• Stay updated on industry trends and regulations.
• Adapt and evolve your business strategy based on market changes.
• Build a strong brand reputation and customer loyalty.

Remember, starting a business requires hard work, dedication, and perseverance. However, with careful planning, execution, and the right support, you can successfully launch and grow your business in Kerala.

Kerala govt schemes for new businesses

The Kerala government has introduced several schemes to support new businesses. Here are some of them:

1. Soft Loan Scheme for Women Entrepreneurs : This scheme is introduced by the Kerala Startup Mission to support all potential women entrepreneurs in the state.

2. International Exchange Program : The Kerala government encourages its state’s startups to participate in various programs that take place worldwide.

3. Support to The Rural Innovators : This scheme is designed to support innovators in rural areas.

4. Marketing Support Scheme : This scheme provides marketing support to startups.

5. Entrepreneur Support Scheme (ESS) : ESS is operated by the Directorate of Industries and Commerce. The scheme aims to provide financial assistance to Micro, Small and Medium Enterprises engaged in manufacturing activities in the State, proportional to the capital investment made.

6. Seed Fund for Women Entrepreneurs : This scheme provides seed funding for women entrepreneurs.

7. Innovation Grant Funding Scheme : This scheme provides funding for innovative projects.

8. Rent Subsidy : This scheme provides rent subsidies for startups.

9. Startup Communities Development and Partnership Programmes : This scheme supports the development of startup communities and partnership programmes.

10. R & D Grant Funding Scheme : This scheme provides grants for research and development.

11. Patent Reimbursement Funding Scheme : This scheme provides reimbursement for patent filing costs.

These schemes are designed to provide financial and non-financial support to startups and entrepreneurs in Kerala. For more details, you can visit the official websites of the Kerala Startup Mission and the Directorate of Industries and Commerce.

FAQ’S On Online Business Ideas in Kerala

1. what are some small business ideas in kerala for ladies.

In Kerala, there are several small business opportunities suitable for women:

Homemade Food Business: Starting a small-scale catering or home-cooked meal delivery service can be profitable.

Handicrafts and Handmade Products: Crafting and selling handmade items like jewelry, candles, or clothing can be a creative and lucrative venture.

Beauty Services: Opening a beauty salon or offering services like bridal makeup and mehndi art can be a successful business.

Online Reselling: Launch an online store selling fashion accessories, clothing, or home decor products through platforms like Instagram or Facebook.

Tuition Center: If you have expertise in a particular subject or skill, consider starting a tuition center or offering online tutoring.

2. What are zero investment business ideas in Kerala?

For those looking to start a business in Kerala with minimal or zero investment, consider the following options:

Freelancing: Offer services like content writing, graphic design, or digital marketing from the comfort of your home.

Dropshipping: Create an online store and partner with suppliers who handle product storage and shipping.

Blogging/Vlogging: Start a blog or YouTube channel on a topic you’re passionate about and monetize it through ads and affiliate marketing.

Homemade Crafts: Utilize your crafting skills to create and sell handmade crafts online.

Consulting Services: Offer consulting services in your area of expertise, such as career counseling, financial planning, or business advisory.

3. What are the best businesses to start in Kerala with 10 lakhs?

With a budget of 10 lakhs, you can consider these promising business options in Kerala:

Restaurant/Cafe: Open a small eatery serving local or niche cuisine.

Medical Store/Pharmacy: Invest in a pharmacy or medical supply store.

Organic Farming: Start an organic farming venture, focusing on high-demand crops or products.

Tourism-Related Business: Invest in a homestay, travel agency, or tour package services.

Online Retail: Launch an e-commerce store selling niche products with a well-planned marketing strategy.

4. Is Kerala a good place to invest?

Yes, Kerala can be a favorable place for investments for several reasons:

Education and Skilled Workforce: Kerala has a highly literate and skilled workforce, making it suitable for knowledge-based industries.

Tourism Potential: The state’s natural beauty and tourism sector offer investment opportunities in hospitality and related services.

Growing IT Sector: Kerala is emerging as an IT and startup hub, attracting technology-driven businesses.

Sustainability Focus: The state emphasizes sustainability, which can be beneficial for eco-friendly and renewable energy ventures.

Government Support: Kerala offers various incentives and support for investors through policies like the Kerala Investment Promotion and Facilitation Act.

However, like any investment, it’s crucial to conduct thorough research and seek professional advice before making any financial commitments in Kerala.

Try it out now!

• Best Products

Best 40 Business Ideas in Kerala in 2024

• April 29, 2024
• by Next What Business Research Team

Kerala is also known as “God’s Own Country.” The state is well-known for both its beautiful beauty and its thriving entrepreneurial culture. The rich cultural legacy, high literacy rate, and developing economy of Kerala make it ideal for a variety of commercial endeavours. In this post, we will look at some of the top business ideas available to entrepreneurs in Kerala, ranging from traditional to emergent industries.

Is Kerala a Good Place to Start a Business?

Yes, Kerala can be a good place to start a business. Some of the major reasons are listed below:

⇒ Educated Workforce

Kerala boasts a highly educated and skilled workforce. It can be advantageous for businesses requiring specialized knowledge or technical expertise.

⇒ Entrepreneurial Environment

The state has a thriving entrepreneurial ecosystem. You will get support from various government initiatives, startup incubators, and industry associations.

⇒ Tourism Potential

Kerala’s scenic beauty and rich cultural heritage make it a popular tourist destination. The state offers opportunities for businesses in the hospitality, travel, and tourism sectors.

⇒ Growing Consumer Market

Kerala has a sizable population with increasing purchasing power and hence provides a ready market for a variety of goods and services. The economy of Kerala is the 9th largest in India. The annual gross state product (GSP) of the state was ₹9.78 lakh crore (US$131.98 billion) in 2020–2021. [ Source ]

⇒ Infrastructure Development

The state has been investing in infrastructure development. It includes transportation, IT parks, and industrial zones, which can benefit businesses in terms of accessibility and operational efficiency.

⇒ Social Development

Kerala is known for its high human development indicators. It includes healthcare and social welfare, creating a conducive environment for businesses concerned with employee well-being and sustainability.

40 Business Ideas in Kerala

1. ayurvedic wellness retreat.

Kerala is world-renowned for its Ayurvedic tradition. Entrepreneurs can capitalise on this by building Ayurvedic health retreats that provide real Ayurvedic therapies, yoga, meditation, and overall wellness experiences. These retreats can draw domestic and foreign travellers looking for rejuvenation and healing in Kerala’s tranquil environs.

2. Eco-Friendly Tourism Business

Kerala is an eco-tourism paradise. It possesses beautiful green landscapes, backwaters, and biodiversity-rich forests. This sector’s tourism business ideas include eco-friendly homestays, nature resorts, responsible wildlife excursions, and sustainable adventure activities such as trekking and birdwatching. Such activities are consistent with Kerala’s commitment to sustainable tourism practices.

3. Spice and Tea Export

Kerala is famous for its spices and tea plantations. Entrepreneurs can venture into the export business by sourcing high-quality spices like pepper, cardamom, and cinnamon, as well as premium tea varieties like orthodox and green tea, directly from local farmers. Establishing a spice or tea export business can leverage Kerala’s reputation as a hub for quality spices and teas.

4. Backwater Cruises and Houseboats

Kerala’s gorgeous backwaters provide an exceptional environment for leisurely excursions and houseboat stays. Entrepreneurs can invest in luxury houseboats, traditional rice barges, or environmentally friendly cruise boats to provide guests with unforgettable experiences on Kerala’s backwaters. This business idea appeals to both domestic and international travellers looking for peaceful experiences in nature.

5. Organic Farming and Agro-Tourism

The growing demand for organic products makes establishing an organic farm in Kerala a profitable economic venture. Entrepreneurs can raise organic fruits, vegetables, and spices using sustainable farming procedures, as well as provide agro-tourism experiences in which visitors can learn about organic farming methods, participate in farm activities, and buy fresh produce.

6. Health and Wellness Startups

Kerala has a growing market for health and wellness startups. It includes areas like telemedicine, healthcare technology, fitness apps, and organic food delivery services. Entrepreneurs can leverage Kerala’s robust healthcare infrastructure and tech-savvy population to launch innovative startups that address modern health and wellness needs.

7. IT and Technology

Kerala’s IT sector has been steadily growing, fueled by government initiatives and the availability of skilled IT professionals. Starting a software development firm, IT services company , or tech-based startup in areas like healthcare IT, e-commerce, or digital marketing can leverage Kerala’s IT potential.

8. Wildlife Tourism

Kerala’s wildlife sanctuaries and national parks are home to diverse flora and fauna, making it an ideal destination for wildlife enthusiasts. Entrepreneurs can develop responsible wildlife tourism initiatives that promote wildlife conservation, eco-friendly safaris, birdwatching tours, and wildlife photography experiences while supporting local conservation efforts.

9. Food and Beverage Industry

Kerala’s diverse cuisine offers ample opportunities in the food and beverage sector. Starting a restaurant specializing in traditional Kerala cuisine, a cafe featuring local delicacies, or a food processing unit producing packaged snacks can cater to the growing demand for authentic flavours.

10. Education and Skill Development

Kerala has a high literacy rate and a strong emphasis on education. Investing in educational institutions, skill development centers, coaching centers, or e-learning platforms can cater to the state’s educational needs while also contributing to social development.

Small Business Ideas in Kerala

11. homemade food delivery service.

Kerala is known for its delectable cuisine, and starting a homemade food delivery service can be a lucrative venture. Prepare authentic Kerala dishes like appam, puttu, and fish curry, and offer doorstep delivery to customers in your locality. You can also cater to special occasions and events.

12. Grocery Shop

Establishing a grocery shop in Kerala can be a lucrative venture due to the constant demand for essential food items and household products. Choose a strategic location with high foot traffic, preferably in a residential area or near a market. Offer competitive pricing, excellent customer service, and convenient payment options to attract and retain customers.

13. Mobile Repair Services

There is an increasing use of smartphones and other gadgets throughout the state of Kerala and also there is a constant demand for mobile repair services. Starting a small business that offers mobile phone repair services can cater to this demand.

14. Coconut Shell Handicrafts

Kerala is abundant in coconut trees, and coconut shell handicrafts are in high demand. Start a small-scale business crafting products like coconut shell bowls, spoons, lampshades, and decorative items. Market your products locally and online through e-commerce platforms.

15. Tourist Guide

Kerala attracts millions of tourists every year, and many of them seek personalized tour experiences. If you’re well-versed in Kerala’s tourist destinations and culture, become a freelance tourist guide. Offer guided tours, travel assistance, and itinerary planning services to visitors.

16. Herbal Skincare Products Manufacturing

Kerala’s rich biodiversity makes it an ideal location for sourcing herbs and natural ingredients for skincare products. Start a small-scale manufacturing unit producing herbal soaps, creams, oils, and beauty products. Emphasize the use of organic and eco-friendly ingredients.

17. Home-based Tailoring and Fashion Boutique

Kerala has a vibrant fashion scene, and there’s always a demand for customized clothing. If you have tailoring skills, start a home-based tailoring business offering stitching, alterations, and customization services. You can also expand into a small fashion boutique showcasing your designs.

18. Mobile Car Wash and Detailing Service

With an increasing number of vehicles on Kerala’s roads, there’s a growing demand for car cleaning and detailing services. You can start a mobile car wash and detailing service where you visit customers’ locations to clean and detail their vehicles. Offer packages for interior cleaning, exterior polishing, and detailing.

18. Home-based Bakery and Confectionery

Kerala has a sweet tooth, and there’s always a demand for freshly baked goods and confectionery items. Start a home-based bakery specializing in traditional Kerala snacks like banana chips, achappam, and ela ada. You can also offer customized cakes, cookies, and pastries for special occasions.

20. Home-based Catering

Kerala is known for its delicious cuisine, and home-based catering services can cater to small events, gatherings, and parties. Specializing in authentic Kerala cuisine or offering fusion dishes can attract a loyal customer base.

Online Business Ideas in Kerala

21. e-commerce store for handicrafts and artifacts.

Kerala boasts a rich heritage of handicrafts and traditional artefacts. Start an e-commerce store that sells authentic Kerala handicrafts, including handloom textiles, wooden carvings, metalwork, and artwork. Collaborate with local artisans and promote your products to a global audience.

22. Online Travel Agency

Kerala attracts millions of tourists annually, seeking unique travel experiences. Launch an online travel agency that offers curated tour packages, hotel bookings, transportation services, and activities across Kerala’s picturesque destinations. Provide personalized travel itineraries and exceptional customer service.

23. Digital Marketing Agency

With businesses in Kerala increasingly embracing digital platforms, there’s a growing demand for digital marketing services. Start a digital marketing agency offering services like SEO, social media marketing, content creation, email marketing, and website development to local businesses.

24. Online Tutoring Platform

Education is highly valued in Kerala, and online tutoring platforms are gaining popularity. Create an online tutoring platform that connects students with qualified tutors for various subjects, including school curriculum, competitive exams, language learning, and skill development courses.

25. Health and Wellness E-commerce Store

Wellness is a growing trend, and people in Kerala are increasingly seeking health and wellness products online. Launch an e-commerce store that offers a wide range of organic and natural health products, including herbal supplements, organic skincare, ayurvedic remedies, and fitness equipment.

26. Virtual Event Planning Services

With the rise of virtual events and meetings, there’s a demand for virtual event planning services in Kerala. Offer virtual event planning services for corporate events, webinars, conferences, and virtual weddings. Coordinate logistics, manage virtual platforms, and provide technical support.

27. Online Food Delivery Marketplace

Kerala is known for its delectable cuisine, and an online food delivery marketplace can cater to the growing demand for home-delivered meals. Create an online platform that connects users with local restaurants and eateries for doorstep delivery of authentic Kerala dishes and international cuisines.

28. Home-based Cooking Classes

Kerala’s culinary heritage offers ample opportunities for home-based cooking classes. Offer online cooking classes where participants can learn to cook traditional Kerala dishes, fusion recipes, and international cuisines. Monetize your classes through subscriptions or one-time payments.

29. Niche Blogging and Affiliate Marketing

Kerala’s diverse culture, natural beauty, and unique lifestyle provide ample content for niche blogging. Start a niche blog focusing on topics like travel, food, culture, or lifestyle in Kerala. Monetize your blog through affiliate marketing, sponsored content, and ad revenue.

Read:   How to Start a Blog

30. Online Clothing Store Business

Starting an online clothing store can be a lucrative business idea in Kerala. You can curate a collection of traditional Kerala attire like Kasavu sarees, Set Mundu, and handloom fabrics, as well as modern clothing options to cater to a wide range of customers. Setting up an e-commerce website or selling through popular online marketplaces can help you reach customers across Kerala and beyond, tapping into the growing trend of online apparel shopping.

New Business Ideas in Kerala

31. smart home solutions.

With the rise of technology, there is a growing demand for smart home solutions such as home automation systems, energy-efficient appliances, and security systems. Starting a business that offers installation and maintenance services for smart home devices can cater to this emerging market in Kerala.

32. Farm-to-Table Restaurants

Kerala’s favourable climate and fertile soil make it suitable for organic farming. Starting an organic farm and supplying fresh produce to farm-to-table restaurants or setting up your organic restaurant can capitalize on the growing demand for healthy and sustainable food options.

33. Urban Farming and Vertical Gardens

Urban areas in Kerala face challenges related to limited space for traditional farming. Capitalize on the trend of urban farming and vertical gardens by offering services that help individuals and businesses set up sustainable and space-efficient gardening solutions in their homes or offices.

34. Health and Wellness Tourism Services

Kerala is renowned for its traditional Ayurvedic treatments and wellness retreats. Tap into the growing health and wellness tourism sector by offering specialized tour packages that focus on holistic wellness experiences, including Ayurvedic treatments, yoga retreats, and wellness workshops.

35. Mobile App Development for Local Businesses

As businesses in Kerala embrace digital transformation, there’s a demand for customized mobile apps tailored to local businesses. Start a mobile app development company that specializes in creating user-friendly and feature-rich apps for small and medium-sized enterprises across various industries.

36. Renewable Energy Solutions Provider

Kerala has immense potential for renewable energy sources like solar and wind power. Establish a business that offers end-to-end solutions for residential, commercial, and industrial clients, including installation, maintenance, and consultancy services for solar panels, wind turbines, and other renewable energy systems.

37. Specialized Healthcare Services

Address specific healthcare needs by offering specialized healthcare services in niche areas such as geriatric care, pediatric care, mental health counselling, rehabilitation services, and telemedicine consultations. Focus on providing personalized and accessible healthcare solutions to the community.

38. Digital Content Creation Agency

With the rise of digital content consumption, businesses are increasingly investing in content marketing strategies. Establish a digital content creation agency that offers services such as video production, graphic design, content writing, and social media management to help businesses enhance their online presence.

39. Ayurvedic Spa and Wellness Center

Kerala is renowned for its traditional Ayurvedic treatments and therapies. Open an Ayurvedic spa and wellness center that offers authentic Ayurvedic massages, treatments, and rejuvenation therapies. Ensure to hire skilled therapists and use high-quality Ayurvedic products.

40. Fitness Center

With an increasing focus on health and wellness, there is a growing demand for fitness centers and gyms in Kerala. Start a fitness center that offers state-of-the-art equipment, personalized training programs, group fitness classes, and wellness services such as yoga and meditation sessions.

How to Start a Business in Kerala

To start a business in Kerala, entrepreneurs can follow these general steps:

a) Research and Planning

Conduct thorough research on the chosen business idea, including market demand, competition, target audience, and legal requirements. Create a detailed business plan outlining your objectives, strategies, budget, and projected financials.

b) Register Your Business

Register your business with the appropriate authorities, such as the Registrar of Companies (ROC), if forming a company, or with local municipal bodies for licensing and permits required for specific industries.

c) Secure Funding

Determine the funding requirements for your business and explore various financing options, including personal savings, bank loans, venture capital, or government schemes and grants available for entrepreneurs in Kerala.

d) Location and Infrastructure

Depending on the nature of your business, secure a suitable location or premises. Ensure that the infrastructure meets the requirements of your business, such as adequate space, amenities, and facilities for customers and employees.

e) Procurement and Supply Chain

Source the necessary equipment, raw materials, and inventory required for your business. Establish reliable supply chains and partnerships with suppliers, ensuring quality and timely delivery of goods and services.

f) Legal and Regulatory Compliance

Fulfil all legal and regulatory requirements specific to your business, including obtaining licenses, permits, and clearances from relevant authorities. Ensure compliance with labour laws, tax regulations, environmental standards, and any industry-specific regulations.

g) Branding and Marketing

Develop a strong brand identity for your business, including a memorable name, logo, and branding materials. Implement marketing strategies to promote your business, such as digital marketing, social media, local advertising, and networking within the community.

h) Staffing and Training

Hire skilled employees or staff members with relevant experience and expertise. Provide training and ongoing support to ensure that your team is equipped to deliver high-quality products or services and uphold customer satisfaction.

i) Operations and Management

Establish efficient operational processes and management systems to streamline business operations. Monitor performance metrics, financials, and customer feedback regularly to identify areas for improvement and optimize business performance.

j) Launch and Expansion

Launch your business with a grand opening or promotional event to attract customers and generate buzz. Continuously assess market trends and customer preferences to innovate and expand your offerings, ensuring long-term sustainability and growth.

Frequently Asked Questions

What are the most profitable business ideas in kerala.

Some of the most profitable business ideas in Kerala include eco-friendly product manufacturing, health and wellness services, organic farming, tourism and hospitality services, and digital marketing and content creation.

What are some unique business opportunities in Kerala?

Some unique business opportunities in Kerala include speciality food products manufacturing, waste management solutions, renewable energy projects, and online education and tutoring services. These businesses cater to specific needs and preferences of the local market while also aligning with global trends.

How can I capitalize on Kerala’s tourism industry?

You can capitalize on Kerala’s tourism industry by starting a business in the hospitality sector such as eco-friendly resorts, homestays, tour guides, or adventure tourism activities. Additionally, offering speciality services or products that cater to tourists, such as traditional Kerala arts and crafts, can also be lucrative.

What are the challenges of starting a business in Kerala?

Some challenges of starting a business in Kerala include high competition, bureaucratic procedures for obtaining licenses and permits, limited access to funding for startups, and infrastructure constraints in certain regions. However, with careful planning and perseverance, these challenges can be overcome.

Start In Kerala

Kerala provides the best startup ecosystem to start the business and grow.Kerala Startup Mission provides a ‘ Unique ID ’ for startups. Unique ID will help startups to get identified with a single code which can be used in all correspondence of the startup. This ID will help startups to get identified from the single search option provided in the KSUM portal. Any stake holder from the Startup Ecosystem from across the world will be able to quickly go through the profile of the startup. Unique ID format : DIPP Number/Registered Year/KSUM ID

• The Startup should be incorporated as a private limited company or registered as a partnership firm or a limited liability partnership
• Turnover should be less than INR 100 Crores in any of the previous financial years
• An entity shall be considered as a startup up to 10 years from the date of its incorporation
• The Startup should be working towards innovation/ improvement of existing products, services and processes and should have the potential to generate employment/ create wealth. 
• An entity formed by splitting up or reconstruction of an existing business shall not be considered a "Startup"

How to Register a Startup 

Company registration.

From being an individual or a team, be a registered entity by setting up a company under the Ministry of Corporate Affairs (MCA) as Private Limited (Best Suitable for Startups) or Limited Liability Partnership.  When you register your company, don't forget to choose Ernakulam as RoC. It's mandatory to register in Kerala to avail all benefits from the Kerala Startup Mission.

Startup India Recognition

After the successful company registration, you will receive a Company Identification Number (CIN) from MCA. To be a recognized Startup India you need to get a Recognition certificate from Startup India by the Department for Promotion of Industry and Internal Trade (DPIIT).

Important Points

- There is no fees/charges for startup India recognition - It may take 5-7 working days - After successful registration you will receive a certificate - If you are facing any difficulty, contact support available in Startup India website

Kerala Startup Mission Unique ID

Now you are a registered startup in India. You can avail all the benefits of being a Startup in India. Apart from that, Kerala Startup Mission also provides many exclusive Programs and Schemes for Startups from Kerala.  To be eligible for that, you have to obtain a Unique ID (UID) from KSUM.

- There is no fees/charges for KSUM Unique ID - You can login using credentials from Startup India Portal to complete registration - Timeframe for Approval    - If Startup India records confirm that your startup is registered in Kerala approval is instatanous    - Otherwise i t may take 2-3 working days for verification - After successful registration you will receive a certificate  digital certificate - if you are facing any difficulty send email to [email protected] with screenshots.

Business Ideas In Kerala [Profitable Options]

If you're from Kerala and planning to start a new business of your own, then this article is definitely gonna help you with your research. Owning a small business has several benefits for a person. From independence, financial pros, learning opportunities, lifestyle changes to creative satisfaction, it is rewarding. And what better place to start your small business than the investor-friendly state of Kerala? It has several business opportunities that individuals can tap on. Located in the southern part of India, this state is known for fetching entrepreneurs wanting speedy returns.

If you’re looking for small business opportunities and ideas in Kerala, we’ve got you covered. So, without further a do, let's take a look at some of the most profitable businesses in Kerala.

Business Ideas In Kerala

Small scale businesses.

• Home Decor Services- More and more individuals these days are investing in their home decor. So, if you have the required skill set, this would be an excessively profitable small business option that you must consider. Apart from setting up a small store, you can also sell your products online. From wall arts, antique pieces, dining accessories to designer vases and candles, there are tons of things with a high demand that you can include. You’d be needing an investment of up to 4-5 Lakhs for this business.   Also Read: How to start home decor business?
• Electronics & Accessories Store- Times are changing. We’re witnessing a massive growth in internet users and electronics buyers. Mobiles and laptops have become a basic need, and that’s why more and more people are investing in them. That is why it’s a great time to enter this business. However, remember that this industry has cut-throat competition. So when you start, keep the products and accessories that the locals would buy. Once your business grows, you can begin investing in high-end products. If done right, it’s an extremely profitable and sustainable business idea. Also Read: How to start electronics store?
• Bakery Business- The reason a bakery would be a profitable small business is that it doesn’t require much investment. Moreover, in this world of personalisation and experimentation, you can let your creativity flow while offering the basics. In a state like Kerala, it’d be beneficial to start it in a crowded market or a place that has ample parking space. So if you have the desired skillset or can partner with an individual who does, open a bakery. Also Read: How to start a Bakery?
• Grocery Shop- Every individual all over the world needs groceries. So naturally, grocery shops are a viable business idea. The best part about this business is that it doesn’t require any particular skill set. But when opening a grocery shop in Kerala, you must do ample research about the products that the locals need most. In addition to that, the location of your physical outlet would also play a vital role. Also Read: How to start a kirana store ?
• Fitness Centre or Gym- Much like the rest of the country, individuals in Kerala are slowly gravitating towards fitness. That is why opening a gym or fitness centre there can yield great results. All you need to do is have a plan and offer the right services to attract customers. Boutique gyms are the talk of the town and something you can cash in on in Kerala. You can set them up with less investment and make significant profits. Also Read: How to set up a gym?
• Ayurveda Tourism- Kerala is a highly sought after travel destination amongst both Indians and foreigners. Meanwhile, individuals all around the world are becoming more aware of the benefits of Ayurveda. So why not combine the two? Kerala has a pleasant climate with the temperature hovering between 23-29 degrees, abundant natural wealth, and ample rainfall. These factors make it the ideal place for Ayurveda practises and tourism. You can set up an Ayurvedic retreat in both cities or the countryside area. Also Read: Ayurvedic Brands In India
• Boutique Hotel- As mentioned above, Kerala hosts a ton of visitors throughout the year. And that makes it an ideal place for doing travel or hospitality-related business. Did you know that this industry provides around 13% of Kerala’s GDP? From the picturesque attractions to historic landmarks, everything makes Kerala travel-worthy. And to have an exquisite little boutique hotel would be an excessively profitable business idea. Also Read: How to start a homestay business?
• Growing and Exporting Crops- Almost 70% of India’s coconut supply comes from the state of Kerala. Moreover, the place is also rich in bamboo crafts and spices. So why not turn this into a business opportunity? You can rent a place to grow all these different crops. As rentals aren’t too costly, you can find an area at a reasonable price. And afterwards, you can export them to other parts of the country or the world. Before starting, you can consult experts or businesses who’re in the same field. Also Read: How to start Agriculture business?
• Clothing Business- Another profitable business idea for Kerala is the clothing business . Fashion travels fast in this country, and there is a lot of demand for anything and everything vogue. But it’s not necessary to offer a massive variety of apparels. You can also go with something niche like beachwear clothing. As Kerala’s climate is a topical one, there is a lot of demand for beachwear and swimwear clothing. You can also choose to export these clothes. Although it’d require significant capital initially, it’d be worth it in the long run if done correctly. You’d need to hire professionals to sew and purchase sewing machines and other equipment. Once you get a place where you’d produce articles, you can move on to tie up with stores.
• Agarbatti- A product that has demand in Indian households throughout the year is Agarbatti. Some people use it for religious purposes while others for its aroma. And Kerala is the ideal place for this business. Why? It’s because raw materials like bamboo sticks, sawdust, and charcoal powder are comfortably available in the state, and you can get them for affordable prices. You can start this business with a low to medium level investment.   Also Read: How to start Agarbatti business?

Top Profitable Business Ideas In Kerala To Try In 2022

The new year is around the corner, and it could be a great time if you're planning to start your new business and give it a fresh start. Here is the list of some of the top 30 most lucrative business ideas to start in Kerala:

• Spice Business (Kochi)
• Indian Cultural Products Business
• Tea & Coffee Business
• Dry Fruits Business
• Ayurvedic Products & Aroma Oils Business
• Banana Chips Business
• Cashew Nuts Import-Export Business
• Wooden Caskets & Boat Models Business
• Handicrafts Items & Jewellery Business
• Glass Business
• Pest Control Service Business
• Beauty Salon Business
• Costume Rental Business
• Dairy Products Business
• Diner/Restaurant/Bistro Business
• Customised Gift Basket Business
• Day Care Center
• Oratory Course Business
• Handcrafted Chocolate Business
• Uniform Making Business
• Frozen Foods Business
• Home-Tiffin Meal Services Business
• Cocktail Bar or Pub Business
• Trendy Clothing Store
• Fancy Balloons Business
• Recycled Paper Goods Business
• Occasion-based Clothing Rental Business
• Cultural exchange agency

Benefits Of Doing Business In Kerala

There are numerous benefits of doing business in Kerala. The cultural appeal, the big market and many more. Before you dive into researching for new business ideas in Kerala, read on to get a look at market benefits:

1- Massive Digital Reach

When compared to other states of the country, Kerala has a significantly higher digital reach. More digital reach is beneficial for any business as it ensures you reach the target audience with much ease.

2- High Literacy Rate

As many of you must be aware, Kerala has the highest literacy rate in the country. It means that small business owners can hire more qualified and well-informed candidates who’d take their business forward.

3- Low Rentals

A primary consideration for many small businesses is low rentals. And Kerala would provide just that. Compared to many other states in India, you can get a shop or property in Kerala for a significantly lower price.  

4- Less Cost of Operations

Cost of operations or operating costs is the expense incurred on the day to day operations of a business. Owning and running a small business in Kerala promises a lower cost of operations. Furthermore, you can reinvest the money saved.

5- Well Connected

The state of Kerala is very well connected with other parts of India. It has an extensive railways network that allows individuals to travel to other parts of the country with ease. Apart from that, it also has numerous airports and ports. Now that you’ve understood the advantages of doing business in Kerala let’s get into the profitable business ideas that’d yield impeccable profits and promise impeccable ROI.

Key Takeaways

Kerala is a hub of business opportunities. But you got to figure out what you’d profit doing, keeping in mind your skillset and resources. All the business ideas mentioned above do contain a fair share of risks, but they also have a high potential and chance of succeeding in Kerala if done right.

Plus, the state is becoming a centre point for investors making this the right time to start and grow a business. So take your pick and start a business from the list of the Best Business Ideas in Kerala .

1) Best business in India 2) Best business in Delhi 3) Best business in Jaipur 4) Best business in Goa 5) Manufacturing Companies in Kerala 6) Best Markets in Kerala

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FAQs on Business Ideas In Kerala

Q. which business is best to start in kerala.

Ans- Some of the most lucrative businesses ideas to start in Kerala are:

• Beauty Parlour Service At Your Doorstep
• Online Plumber And Electrician
• Home Tuition Online
• Designer Fashion Boutique
• Online Home Decor Services
• Blog Content Writer
• Self Employed SEO
• Accounting Services
• App. Based Home-made Food Delivery
• Property Management Services/Estate Agency

Q. What is the most profitable business in Kerala?

Ans- Some of the topmost profitable business to start in Kerala are as follows:

Q. What is the best small scale business in Kerala?

Ans- Here is a list of the top small scale business in Kerala:

• Candle-Making Business
• Garment Selling Business
• Garments Manufacturing Business
• Imitation Jewellery Business
• Stainless Steel Utensils Business
• Mobile Repairing Business
• Coconut Oil/Chips/Condiments Business
• Online Toys Business
• Online Ayurvedic Products Business

Q. How can I start a small business in Kerala?

Ans- To start a small business in Kerala you need to fulfil all the legal formalities and get all your registration process completed with the Companies Act of India.

Q. What is the good business to start in Kerala?

Ans- The top 3 best business to start in Kerala are:

• Real Estate/Property
• Jewellery Business

Q. What business can I start with RS 10000?

Ans- These are the Top 5 business ideas to start between Rs. 5,000 to 10,000:

• Homemade sweets and snacks
• Breakfast joint
• Fresh fruit juice Kiosk
• Online bakery
• Social media strategist

Q. What are some of the profitable businesses in Kerala?

Ans. Businesses in Agriculture, Hospitality, and Tourism tend to do well and usually turn out to be profitable. That said, no one business type of sector guarantees profits.

Q. Is it tough doing business in Kerala?

Ans. Till a few years back, it was comparatively difficult to do business in Kerala. However, due to the multiple initiatives taken by the state government, things have changed. As of today, Kerala is full of business opportunities.

Q. What is the best business to start in Kerala with 1 Lakh Rupees?

Ans. You can start a small tour and travels business as there’s a lot of tourist influx in Kerala. You can market your business as a problem solver for any travel-related query that one might have.

Q. Is it a good idea to start an e-commerce business in Kerala?

Ans. Yes, it is. The reason for that is that we’re more connected than ever. On top of that, Kerala has a massive digital reach, with most of its population active on the internet.

Q. Is it safe to start a business in Kerala?

Ans. As long as you’re following the rules and regulations and systematically doing business, it is excessively safe.

Read the best of business ideas, tips for small businesses, the latest update on technology & more by OkCredit.

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12 mandatory restaurant licenses required to open a restaurant in India

• March 31, 2022

Introduction

Restaurants are one of the most popular ways to invest money in India. Great ambiance and good food can surely attract a good number of customers and thus a great profit. However, you need to procure certain licenses if you’re planning to start a restaurant in India. But no worries. You are at the right place. We have provided all the guidance and procedures to get the licenses required to open a restaurant in India.

12 Most Important Licenses Required to open a restaurant in India

Check out how and where to obtain the 12 mandatory licenses required to open a new restaurant in India.

1. FSSAI License

This is the first and most important license you’ll need to start a restaurant in India. The Food Safety and Standards Authority of India not only authorizes you to run a restaurant but also gives confidence to your customers. A FSSAI certified restaurant always attracts more people. It is also a legal document representing the approval of the authority.

How to apply

FSSAI license can be applied through their official portal . The inspection will take between one week to one month depending on the paperwork.

Where to apply

The food license application can be done online through the official portal. You have to fill up the online form and make payment here.

Types of licenses

• FSSAI Registration – For food business < ₹12 lakhs revenue/year.
• State License – For food business > ₹12 lakhs and less than <20 crore revenue/year.
• Central License – For food business > ₹20 crore revenue/year.

Documents required

• Valid Email ID and Contact Number
• FSSAI form duly filled and signed by the Restaurant Owner
• Identity and Address Proof issued by a Government Authority
• List of main stakeholders along with their identity proof
• Declaration of Food Safety Management plan
• Proof of possession of the location/premise
• No objection certificate from the local Municipal Corporations or local bodies
• Kitchen Layout Plan
• Water Testing Report provided by ISI certified organization
• List of Food Category
• Partnership Deed/ Affidavit of Proprietorship (in case of business operated on other premises or case of partnership firm)
• Medical certificates of employees
• Types of equipment to be used

Food License Cost

Food License costs ₹2000/year for State License and ₹7500/year for Central License

2. Eating house license

Eating house license is mandatory if you’re planning to open a public restaurant where food and beverages are supplied for consumption.

You can apply for this restaurant license online. You just need to fill out the application along with submitting the required documents. After that, the applicant must meet the Additional Commissioner of Police of the state for the verification of the application and the examination of documents. If the application and documents are approved, the applicant will be issued the eating house license within two months.

The eating house license can be brought from the respective websites of the city or state licensing policing commissioner.

• Fire NOC if the seating capacity is greater than 50
• Site plans and photographs
• Documents of the restaurant building and NOC from the property owner
• Trade license
• FSSAI license
• Photocopy of valid NDMC/MCD/DCB/ Airport Authority of Indian trade license and valid fee receipt
• Undertaking regarding the installation of a CCTV camera recording facility with a minimum of 30 day’s recording stored

Eating house License Cost

The cost of getting an Eating house license is around Rs 300.

3. Health/Trade license

Public health is a crucial factor to be considered before opening a new restaurant. Health Trade License is a license issued by a municipal corporation permitting the operation of a business engaging in goods and services that directly affect the health of the general public.

Initially, you have to fill up all the details of the application form for a Health Trade License like applicant status, address of premises, type of business activity, residential address of the owner. After the verification of the application and documents, the license will be issued.

The forms for the application for Health Trade License are available at the State’s Municipal Corporation website or Zonal Citizen’s Service Bureaus.

• Three copies of the site plan
• Electricity and Water bills
• Rent Agreement or NOC from landlord
• Sewer Connection Proof
• Proof of property tax
• Letter from local police
• Plan and Layout of the restaurant
• Indemnity bond for Rs.100
• Structural Stability Certificate signed by the concerned Structural Engineer
• Water Testing Reports
• Medical Certificates of Employees
• Lal Dora Certificate, if applicable( only in Delhi)

Health/Trade License Cost

The cost of the trade license is based on the location of the restaurant.

4. Liquor license

Selling liquor is one of the most profitable businesses for the Hotel Sector in India.

It always has high demand irrespective of the season. You need the Liquor License to serve liquor at your restaurant. The Liquor License is permission granted by the State Excise Department to those who want to sell or distribute alcoholic beverages or drinks at a particular place.

Each state has its own rules to be followed for serving liquor. The application has to be submitted to concerned state authorities.

As already mentioned, each state has different rules and regulations to be followed. The application has to be submitted to the respective state authorities.

Types of Liquor Licenses

• L-1 – Granted to company society or partnership running with manufactured units
• L-3 – Granted to working distilleries or bottling plans that are issued by the state or central government
• L-6 – Granted for retail vendors for liquor and beer by the state government
• L-10 – Granted for sale of foreign liquor and select Indian brands
• P-13 – Temporary license provided to hotels, pubs, and restaurants which are licensed to sell liquor inside or outside the premises for one specific day
• P-10 – Granted to serve liquor at a function on a specific day for anywhere in the city other than public parks
• Address proof of the restaurant
• Original application and a copy with business details
• NOC from the fire department and municipal corporation
• List of all directors of the company
• MOA and AOA if the applicant is a company
• Copy of the latest IT returns
• Concern applicant photographs
• Affidavit of the applicant stating there are no criminal records under their name

Liquor License Cost

The cost of the liquor license is based on the location of the restaurant.

5. GST Registration

GST number is mandatory to start any company in India. If your restaurants have outlets in different states, then you need to have a separate GST registration for each state.

Firstly, you need to apply for GST registration in Form GST REG – 01. After that, you’ll be asked to upload documents and attest the same with your signature. After the verification of your application and documents, the department will grant your registration certificate.

You need to go to the official website of GST to register.

• Applicant details
• Mobile number
• Pan card number
• Proof place of business
• Copy of valid rental agreement/lease agreement
• Valid bank account from India
• Provisional ID and password received from the state’s VAT department

GST Registration License Cost

There is no fee for GST registration in India.

6. Environmental clearance license

Environmental clearance is a procedure to get clearance from the government for certain industries which cause environmental pollution. Your restaurant is expected to cause no pollution to the environment.

You need to submit the questionnaire for environmental appraisal. The expert appraisal committee will review your application and approve the same if eligible.

You can apply for the certificate of environmental clearance from the ministry of environments and forests website.

• Letter of intent from the Ministry of Industry
• NOCs from the State Pollution Control Board and the State Forest Department if the project talks about forestland

Environmental clearance License Cost

It depends on the type of restaurant.

7. Fire safety license

The safety of the workers and customers is one of the most important factors in any industry. The restaurant must protect its customers and workers from fire hazards. A No-Objection-Certificate (NOC) from the fire department is thus required to run a restaurant.

The restaurant must submit the application for NOC from the state fire department. The restaurant should also have all the safety equipment in place. After that Chief Officer will inspect the equipment and approve your license if eligible.

The NOC should be submitted to the state fire department. Applications can be found online on the state government website.

• Arrangements of Building intends to comprise of building format, examination report, the type of oversight.
• The structure plan should be as per the data recommended by the bye-laws of the state.
• Checklist survey questionnaire with answers
• Building Model certified agenda by Architect.
• Building Stability declaration.
• Applicant’s id card- a copy of Aadhar Card.
• Photographs of the setup building clicked from outside.
• Quantity and finishing endorsement of Electric wiring should be given from a perceived position.

Fire safety license License Cost

There is no fee required

8. Lift license

You’ll need a lift clearance if you’re planning to install a lift in your restaurant. You have to ensure that the lift operation is designed by meeting the safety standards.

You have to register for the Lift Clearance License which ensures that the lift operations comply with safety norms.

The lift clearance license can be obtained from the electrical inspector in the office of the Labour Commissioner. The electrical inspector issues this license from the office of the Labour Commissioner after verifying the installation of your restaurant’s lift.

Lift License Cost

The cost for a lift license depends on the technical parameters of the lift.

9. Signage license

You’ll need a Signage License for advertising your restaurant. This legal permit allows you to market your restaurant by using photos, graphics, and painting in your area.

How and where to apply

You can obtain this license from your respective Municipal Committee or City Corporation.

10. Music license

Music is cool and it will attract more customers. But for playing music in your restaurant, you have to obtain a music license.

Restaurants can obtain a music license from the Phonographic Performance Limited website.

11. Shop and establishment license

This license is mandatory and permits you to run a business in your respective state. It comes under the Shop and Establishment Act which regulates the working hours, payments of staff, and work conditions.

The Chief Inspector of Shops and Establishment Act, or the inspectors assigned to the area where you operate the restaurant, are the persons approved to provide the certificate of registration. You can either apply for the license online or offline.

The application can be submitted directly to the respective area inspector or you can submit it through the labor commission website of your state.

• Details of Employer/Manager
• Memorandum and Articles of Association/Trust deed/Partnership Deed
• Lease Rent Agreement /Premises purchase Agreement
• List of Directors/Managers/ Partners
• Bank Account Number details
• First Income Tax Assessment order/PAN
• BMC declaration
• Date of commencement of business

Shop and Establishment License Cost

The cost of this license depends on the number of employees in your restaurant.

12. Insurance

It’s always recommended to insure your restaurant for the following parameters.

• Public Liability
• Product Liability
• Fire Policy
• Building & Asset

Insurance can be obtained from any legally registered entity.

Bonus Facts About Restaurant Business in India

Stats don’t lie! Here are some impressive numbers that indicate the growth of the food and restaurant industry in India and judging by it there is a sea of opportunities in this sector!

You don’t have to be confused and tensed by looking at the number of licenses you need to start a restaurant. We have clearly explained how to obtain these licenses easily. These licenses are mandatory to keep your business healthy. Once you have got all these licenses, you can plan the opening ceremony of your restaurant at any time. So, best wishes for your new restaurant!

Calicut Restaurant: Kerala Interior Architecture

Calicut Restaurant Building, India Interior Design, Kerala Architecture Development, Architect

Calicut Restaurant Kerala Interior

New Indian Dining Building design by Collaborative Architecture

20 Nov 2012

Calicut Restaurant in Kerala

Location: Kerala, south west India

Design: Collaborative Architecture

New Indian Restaurant interior

MEZBAN – INVERTED TOPOGRAPHY

The project is a part of a business hotel (Not classified in Star category), in a tier 3 city in the country, which has been redesigned by the firm as repositioning exercise. The strategy was to create a new identity to the already popular restaurant through interior architecture, making it a new destination dining in the city to spur the business of the hotel.

The brief called for a highly flexible layout with higher efficiency on floor , though it meant cutting down the seating capacity. (8 pax and 6 pax tables were taken out in favor of 4 pax and 2 pax seating with could be joined create desired groups easily, with the linear layout).

The brief, highlighted the project to be executed on a very tight budget, environmentally compassionate (we wouldn’t call it sustainable, as the focus was to follow environmentally good practices rather than going for certifications) and low on routine maintenance.

The brief also called for an ambience which could seamlessly straddle between a Fine Dine and a Lounge – fine dine during lunch and dinner and Lounge space during early evening hours.

The biggest challenge was to execute a sophisticated project like this in a tier 3 city of the sub‐continent, where the very basic work done satisfactorily itself is a challenge. The project had a bizarre mix of logistics ‐ local as well as international. So was the case with the execution team.

A vibrant waiting lounge is carved out from the restaurant space, showcases the happenings on the restaurant floor.

Then design derives its strength from the innovative architectural lighting. The minimalist design gets transformed by the custom designed lights which create an undulating topography and magical lighting quality to the space.

The architects designed the series lights along the exterior wall named as ‘Thousand Moons’ which lends an unmistakable character to the façade.

The idea of design, as a tool to transform business was not this client was exposed to or experienced personally in their business before. So it was more like a close collaboration of opposing ideas, converging at the right junctures for an immensely satisfying project.

The restaurant became the new destination dining, acquiring almost 85% additional clientele paving way for a seismic shift in the customer profile. The new positioning of the restaurant enhanced the business of the hotel, becoming the best rated hotel in town surpassing two, existing 5 star properties. It also brought about an immense dialogue among the general public of the benefits of good design, and how they impact business in a positive way.

Calicut Restaurant Interior – Building Information

Project: Mezban-INVERTED TOPOGRAPHY Location: Calicut, Kerala Client: Mr.Mohamed, HOTEL ASMA TOWER, Calicut Principal Architect: Lalita Tharani + Mujib Ahmed Design Team: Lalita Tharani, Mujib Ahmed, Muneeb, Mazhar, Shaoukath, Vineeta Parekh Completion date: Jul 2011

Photos: Lalita Tharani

Calicut Restaurant Kerala images / information from Collaborative Architecture

Collaborative Architecture

Restaurants

Location: Calicut, Kerala, Southwest India

Restaurants in India

Restaurants in India – featured on e-architect:

New Delhi Restaurant

The Backyard Restaurant in New Delhi

The Orient – Chain of Restaurants in Kolkata

Town Hall Restaurant in New Delhi

Restaurant Interior

Kerala Buildings

Kerala Building Designs – Selection

Indian Buildings – Selection

Indian Architecture

Indian Architects

New Delhi Architecture Walking Tours

Museum of Bihar , Patna, north east India Design: Maki & Associates (Tokyo) with OPOLIS Museum of Bihar

Raas Jodhpur , Rajasthan, north west India Design: The Lotus Praxis Initiative Indian Hotel Building

Vivanta by Taj – Whitefield , Bangalore Architects: Warner Wong Design Vivanta by Taj

Restaurant Design

Comments / photos for the Calicut Restaurant Interior – Kerala Architecture Development page welcome

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The $5 McDonald's meal is making a grand comeback in June — but only for a month

• McDonald's plans to launch a limited-time $5 meal.
• In first-quarter earnings, the company's leadership highlighted how inflation has affected customers.
• Other fast food chains are also worried about affordability.

McDonald's is looking to launch a $5 meal in the US in a move to bring back price-sensitive customers .

The meal includes four items, people familiar with the matter told Bloomberg and Restaurant Business . Customers would choose between two of the chain's signature burgers — a McChicken or a McDouble — and get four-piece McNuggets, fries , and a drink. The $5 promotion would last for a month, Bloomberg reported.

The deal will start on June 25, The Wall Street Journal and other outlets reported.

The discussions about the new deal come three weeks after the fast food giant's first-quarter earnings call, where leadership highlighted how customers are increasingly price-sensitive.

"I think affordability is clearly an area where consumer expectations are heightened," McDonald's chief financial officer Ian Borden said on the call. "Obviously, they're getting hit ," by inflation, he added.

The company previewed a value meal on the earnings call without any specifics. CEO Chris Kempczinski said McDonald's has local value meals around the US, but no standard national offering like competitors do.

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A $5 meal would be a stark drop from current prices, especially in higher-cost cities, according to a Business Insider analysis.

A meal consisting of the same four items — a McChicken, fries, a drink, and four-piece chicken nuggets — costs $18.26 in downtown New York City. In downtown San Francisco, the McChicken version costs $16.15, and the burger variant costs $17.75.

The new bundle would be priced lower than a Happy Meal, which starts at $6.39 in downtown Manhattan.

The company's stock has fallen about 7% year-to-date as investors worry about rising costs and intensifying fast-food competition.

Fast-food chains across the US are grappling with fewer orders from customers who no longer find their meals affordable. Wendy's, Shake Shack , Starbucks and Burger King parent Restaurant Brands International have all said in their latest earnings call that they will exercise caution on prices.

"We're going to stay careful on pricing," Gunther Plosch, Wendy's CFO, said in its earnings call earlier this month. "I don't think we're going to get too greedy."

Fast-food giants have also been hit by California's new minimum $20 hourly wage for limited-service restaurants. Franchisees that have raised prices are worried they may lose customers to sit-in dining chains like Chili's and Applebee's , which are not subject to the wage hike.

McDonald's did not respond to an immediate request for comment sent outside standard business hours.

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