Restaurant Business Plan in Mumbai

Done with your hospitality diploma?and now you want to open a restaurant in india do you?For those few who have a streak of maverickism in them, read on

The world loves glamour,beautiful people,the world loves food,and if you can make a lil money while youre at it,,why not wouldn’t you say,Two years of experience in a real world kitchen should be enough to start with.Im talking about a live a la carte kitchen on fire,rush hour guests with the orders pouring in,its hot,its sticky and you cant get a whiff beyond the garlic chutney.This is a harsh environment.and you have to be smack in the middle of it.

Assuming you’ve been through that phase;

for a mid sized restaurant business plan in Mumbai

You will need::

1.Rent amount of atleast 1.5 to 7 lac rupees ($3K-17K) a month depending on the location and size of premises

2.Overheads,including staff and electricity and gas– another 1.5 lac per month

3.Clearaces from the municipal corporation-licenses include health,eating house,rolling shutter,stallboard,gradation—renewble every year-about 30K

4.NOC from the fire department

5.Police licence-valid for one year

6.Renovation expenditure,depends on your budget,starting from 2 lac rupees

7.If you want to opt for liquor too,will set you back 4 lac rupees –valid for one year

8.VAT –oping for 6 monthly return about 1 lac + 20% on liquor sales—approximately 4 lacs a year

9. “Payouts” to keep everyone happy-about 15K a month

That should make you “less richer” by a very modest  6 lacs($16k) a month at a minimum.

So there you have it.The restaurant business is =by the rich,for the rich,=unless you plan on starting a small side of the road eatery,but you didn’t sign up for catering school for that did  you?

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22 Responses to Restaurant Business Plan in Mumbai

  1. Urvashi D. Maharshi July 16, 2015 at 1:04 pm #

    Hello,

    Your article is really helpful. I wanted to know about invst in Tibbs as per current info. Can u tell me instead of going for a place on rent, can i opt for something like a stall? As they provide cart to the franchisee holder. And what all is required for such alongwith cost? Thanks.


    • jojo22 July 17, 2015 at 12:50 pm #

      i can give you first hand info on this. i have been approached by 3 different ppl asking to setup a tibbs franchise on my premises. In your case, let me tell you that hiring a small place will be difficult,expensive and not at all worth it in any way, becuase the costs will be too high. also getting the required licnses will be hard. if u take up a stall at a mall or anything,the rent and other expenses is also high in the range of atleast 40-50 k. Best thing for u is to try and take up a place in a full fledged restaurant that has the ful infrastructure already in place


      • Urvashi D. Maharshi July 20, 2015 at 11:08 am #

        I wanted to know if I place a stall on road side and not in some mall or restaurants.


        • jojo22 July 21, 2015 at 4:24 am #

          you will have to check with the bmc in your ward,but as far as i know u cannot hawk food of any kind,,the health department is very strict about this


  2. habibi November 29, 2014 at 9:56 pm #

    Hey bro,
    thanks for your useful article..
    i’m An Afghan Investor into hotels and restaurant buisness i do have a running buisness in gurgaon, i’m seeking for expanding my restaurant business into other cities of India like Mumbai, Goa, Pune and other major cities so can u tell me what’s the scope of an Afghan cuisine in Mumbai??

    thanks


    • jojo22 December 1, 2014 at 5:22 am #

      major metropolitan cities in india are very cosmopolitan and experimental with food. Middle eastern and lebanese food is catching on fast, you have a good chance of success because thee are almost no other places serving your niche cuisine, but keep in mind the bigger the city, so is the overheads and costs,,best of luck


  3. Utk November 10, 2014 at 6:54 am #

    Hello,

    Can you help me in giving info about opening a small chain of Franky or rolls. Like how much will I have to invest and what will be my monthly expense.


    • jojo22 November 15, 2014 at 8:09 pm #

      tibbs frankie is looking for franchisees if youre interested. Depending on the area and city, your expenses will be rent,staff,gas and electricity. dont forget your comission/royalty if its a franchise. its better to rent space in an existing eatery first, since they have all licenses and infrastructure. atleast 50k a month is needed for this venture.


  4. Gautams December 6, 2013 at 6:29 am #

    thanks for the information , but just to clarify again since u have mentioned that the licenses would be difficult to get but impossible right ?

    that means there is a solution to the problem if use the right sources to obtain my licenses sir ,please throw some light on this one


  5. Gautams December 5, 2013 at 8:08 am #

    sir , i am planning to open a small pizza hut in a commercial shop which is in a bulding .

    the bulding does not have a occupation cetificate.. but they have a letter stating that they have

    applied for one.Is it possible for me to obtain licenses with this lettter or the buldind needing a o

    occupation cetificate is mandatory


    • jojo22 December 5, 2013 at 12:34 pm #

      building with an OC is risky because you might not even get basic amenities like municipal water and other municipal licesnses. Also fire brigade license might be difficult to get.


  6. Abhishek October 8, 2013 at 10:57 am #

    Hey Joel, very useful article indeed!!

    I am an MBA student and want to do a research on the business model of restaurant industry. Could you please guide me if there are any websites having information like margins, sq. ft. areas, average bill size etc. for my research.
    It would be very helpful if you guide me how to go about my research.

    Thanks in advance!!


    • jojo22 October 9, 2013 at 4:07 pm #

      there is a blog by jayanth narayan,,hes a restaurateur from the south,,lots of articles about the industry,,you can look that up


  7. Aakanksha June 5, 2013 at 1:30 pm #

    Extremely helpful article. Can you clarify what do you mean by a license for gradation (in your point 3)?


    • jojo22 June 5, 2013 at 3:30 pm #

      its provided by the muncipal corporation,,they examine the premises and accordingly award it a grade 1,2 or 3 etc


  8. Swapnil December 17, 2012 at 12:28 pm #

    Gr8 article, what do you mean when u wrote : “That should make you “less richer” by a very modest 6 lacs($16k) a month at a minimum”
    what cost are you referrin to ?


    • jojo22 December 17, 2012 at 12:47 pm #

      those are the total operating costs you will have to endure every month,which includes all overheads and purchases.(rent,elctricity,wages etc)


  9. sanjay March 12, 2011 at 3:45 am #

    what are the requirements for obtaining a liqour licence in mumbai?can you please guide as i would likem to open a pub some day?


    • jojo22 March 12, 2011 at 4:26 am #

      you will need the following:
      1.grade 1restaurant not less,specified on eating house licence,and gradation certificate for the same
      2.police entertainment licence
      3.your establishmeny shouldnt be ess than 75 metres from any place of religious wroship,educational institutioin,hospital or highway


  10. steve vincent March 11, 2011 at 11:51 am #

    What size of restaurant would this be in sq. ft.?Also does the excise department charge extra fees for a dance floor and live music?What about rules for lady waitresses and orchestra with singers?


    • jojo22 March 11, 2011 at 7:01 pm #

      specifications of dining hall,kitchen,store room are laid down by the BMC,the exmaple i was referring to was for a mid size restaurant of about 1000 sq feet.As for the dance floor,i recently read that the license of performance of a live orchestra is in the range of 50 K per month,and as far as female staff in a restaurnat go,there are guidlines that state they can work till only 9.30pm,thats why even in places like mc donalds and dominos pizza they dont work there after evening


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