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Research Study Before Stating A Restaurant in India.: 1. Choosing The Location of The Quick Service Restaurant

The document provides guidance on starting a quick service restaurant (QSR) in India. It outlines 9 key steps: 1) choosing a prime location, 2) obtaining necessary licenses, 3) hiring an appropriate number of staff for the kitchen and front-of-house, 4) procuring necessary kitchen equipment and initial food supplies, 5) marketing the new restaurant, 6) implementing a point-of-sale (POS) system, 7) designing staff uniforms, 8) building an attractive front counter, and 9) acquiring additional small items like phones and office supplies. Following these steps carefully is advised for new QSR owners to help ensure their restaurant's success.

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130 views6 pages

Research Study Before Stating A Restaurant in India.: 1. Choosing The Location of The Quick Service Restaurant

The document provides guidance on starting a quick service restaurant (QSR) in India. It outlines 9 key steps: 1) choosing a prime location, 2) obtaining necessary licenses, 3) hiring an appropriate number of staff for the kitchen and front-of-house, 4) procuring necessary kitchen equipment and initial food supplies, 5) marketing the new restaurant, 6) implementing a point-of-sale (POS) system, 7) designing staff uniforms, 8) building an attractive front counter, and 9) acquiring additional small items like phones and office supplies. Following these steps carefully is advised for new QSR owners to help ensure their restaurant's success.

Uploaded by

chau777
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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Research Study Before Stating a Restaurant in

India.

 Choose the location of the Quick Service Restaurant


 Get all the licenses required to make your QSR legal
 Get on board the required number of staff
 Arrange for the kitchen equipment and the raw materials needed
 Market your QSR well
 Install a POS or a billing software To smoothen your operations
 Decide on the staff uniform
 Get all the other miscellaneous works done.

1. Choosing The Location Of The Quick Service Restaurant

 The location is the one the most critical factors which determine the
success or failure of any restaurant. The takeaway should ideally be in a
densely populated area, keeping the target audience in mind. Accessibility
and visibility of the area are also essential to attract customers. Ground
floor shops, located at the front are preferred for QSRs and Takeaways.

 The store shop should be at least 450 sq ft in size to build a good


kitchen. The counter and the serving area should not exceed
100 sq feet. Thus, for 450 sq feet, the rent should not exceed Rs
40-45k. So, out of the 5 lakh investment, Rs 1,20,000 goes to the
landlord, who gets two-month rent, a one month rent in advance.

 You also need to make sure that the building has a proper water supply
and drainage facility. You must also obtain a No Objection Certificate
(NOC) from the owner that he has no problem subletting his space for a
food business, and also from the neighbors. The NOC is required in
obtaining the Local Municipal License, and Food license.
2. Licenses Required For Opening A Quick Service
Restaurant

 A QSR primarily requires five licenses, namely: Food License from FSSAI,
GST registration, Local Municipal Corporation Health License, Police Eating
House license, and fire license. Out of all, Food license, GST
registration, and Local Municipal Corporation Health License are
the most important ones to have for starting of the outlet. Fire
license and the likes can be acquired once you commence restaurant
operations; however, it is recommended to have all the permits in place
before opening the outlet to keep yourself away from the legalities and
small hiccups which come due to unavailability of these licenses.

 The three licenses have to be applied separately. For Food License, you
can apply through its website www.fssai.gov.in. This can also be
facilitated through various agencies which charge around Rs 5,000 for the
complete paperwork and license fee. Any Charted Accountant can assist
you with the GST registration. Lastly, for Municipal Corporation health
license, you have to contact the local health inspector, and they will guide
you through the process of acquiring the license. The license fee is
nominal and will cost around Rs 3,000. Police Eating House and Fire
license can be obtained once you have Municipal Corporation health
license. This can be done in the first two-three months of the operations.

3. Staff Needed For Running A Quick Service Restaurant

 The secret to a successful quick service restaurant is often a great team


behind the counter and in the kitchen. The Chef is probably the most
important person on your team, as they not only cook, and design the
menu; they also lead and guide the rest of the kitchen staff. The attrition
rate is extremely high in the restaurant industry, especially at the junior
level. Learn how to hire better for your restaurant here.

 In a takeaway kitchen, minimum of 5-6 employees is required in


the kitchen. Out of them, two chefs are required who have a fair
knowledge of every department of the kitchen. The salary of the
chefs and helpers depends on upon their experience. The average salary
of the chef at Commis level 1 is Rs 14000-Rs 15000 while the helpers and
other staff salary range between Rs 6000- Rs 8000 based on their work.
Apart from the kitchen employees, two delivery boys are required and
one at the counter for taking the order. Find out how to create a Human
Resource Structure for your restaurant here.

 In today’s tech-time, there are a lot of third-party delivery services


with whom you can tie-up for work on per order basis. They charge
somewhere around Rs 30 for the first five km and Rs 10 for every extra
km. It is highly recommended to have at least one delivery boy full time
and part-time, even if you have partnered with a Third Party for
deliveries, as a backup. These third parties will help you save the cost of
the bike for delivery.

4. Kitchen Equipment And Raw Material Needed In A


QSR

 Kitchen equipment is a significant expense for the restaurants, and the


same is the case in a quick service restaurant. A small working table
for four sqft can cost somewhere around Rs 6-7k. But, it is not
always necessary to have everything new in the kitchen; most of
the kitchen equipment can be bought old and used. It would roughly
save around Rs 1 lakh. While working table, refrigerator, store racks, and
cupboards can be reused, burners, Tandoor, and gas pipeline should be
new to avoid the added cost of repairs and gas leakages that are bound
to happen. Other than the aforementioned kitchen equipment, Mixer, fry-
pans, knives, cutting boards, and other utensils should be bought new.

 About Rs 2,30,000 is invested in the setting up the kitchen. Lastly, raw


materials such as groceries, packaging, dairy, and poultry will cost you Rs
20,000 for the first five days of the operations, depending upon the sale
you make in the first five days.

5. Marketing Of The Quick Service Restaurant

 The tried and tested method of marketing and also one of the cheapest, is
the pamphlets. You also need to spend some money on menu
designing and logo designing, which should not cost more than Rs
2000. For the first two months, 30k pamphlets are good enough to
market your restaurant. These 30k pamphlets of good paper quality will
cost you somewhere around Rs 25,000. However, you can change the
quality and quantity of the pamphlets as per your budget. Find out
how distributing pamphlets and flyers can boost your restaurant sales.

 Apart from pamphlets, invest some money in an excellent billboard to


attract an audience. An average billboard costs around Rs 10,000. You
can also spend on an onlineadvertisement on Social Media and Google
Adwords. Read how you can do the right digital marketing for your QSR
Restaurant.

6. POS And Billing Software Needed for the QSR

 POS is the most critical and integral part of a successful operation and
management of any restaurant or food outlet. Choose a niche POS that is
customized to suit the requirements of a Quick Service Restaurant. Read
a detailed guide on how to choose the perfect POS for your restaurant
here.
 The one we recommend is POSist, which is hardware independent and
entirely browser-based. You can use any web-enabled device such as
a computer, laptop, tablet or even your mobile to generate the
bills. The cost for this should not exceed more than 25000.

7. Staff Uniform For The QSR Employees

 Staff uniforms are a critical aspect of a restaurant venture that is often


ignored. It is essential that all the staff members look good, hygienic and
well dressed. You can choose from different types of dresses such
as chef coats, smart shirts and t-shirts, and an apron. At the initial
stage of operations, it’s ideal to have a low-cost uniform which
will save the additional cost. We recommend good t-shirts which will
cost around Rs 150 per piece and if they ordered in bulk they would cost
no more than Rs 120 per t-shirt. So, you can allocate an amount of Rs
6000-7000 for staff uniform which gives a nice feel to your restaurant
brand.

8. Counter Design Of The QSR

 It would be best to procure the raw materials and design your counter
based on your need with the help of a carpenter. Go for a good standee
and menu board at the front-end to give an overall feel of the
brand. The counter and front-end will cost you somewhere around Rs 20-
25k based on the design of the counter. This article will tell you how to do
the branding for your restaurant.

9. Other Things Needed To Open A QSR

 A Takeaway and Home Delivery outlet require one landline and at least
two mobile phones. You can get a Cloud Telephony subscription that
forwards the call to another designated number in case the first
number is busy. You can also record the call for training purposes. It
should not cost you more than 10k.
You further need to spend around Rs 8000 on electricity fitting and
plumber work. Apart from that, you would require a good calculator, Fire-
extinguisher, daily account books, attendance register, etc.

 The quick service restaurant industry in India is expanding on a massive


scale. While the investments are low, when compared with the other
formats, if you can start it well, it can help you the reap rewards. Hence,
follow the steps mentioned as your go-to guide and implement them
effectively, and watch how that dream quick-service restaurant of yours
blossoms!

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