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How To Start a Restaurant Business In India in 2022?

17 Nov 2022
How To Start a Restaurant Business In India in 2022?  Image

India is a country of 1.3 Billion people, this is precisely the reason that Indian Markets are overloaded with eating spots such as restaurants, kiosks, stalls, Dhabas & more. The restaurant business in India has always been a profitable venture in India & nobody expected it to take a hit until it did. 

In 2020, when the lockdown was declared, many restaurant owners found themselves unprepared & not ready to adapt to the changing circumstances.

One of the best possibilities for Indian company owners and entrepreneurs before the pandemic was the restaurant industry.

From roadside stands to five-star eateries, Indian entrepreneurs catered to the hungry populace while making fortunes for themselves.

As a result, the restaurant business in India grew to be one of country's largest service industries, dwarfing the cinema sector by a factor of 20. 

The situation has gotten worse since then. People ceased to eat out. According to experts, the revenue could decline by up to 40–50%. It seems like a horrible idea to open a restaurant in the midst of a pandemic. 

But there is still hope. Entrepreneurs have already begun to look for novel revenue streams. Restaurants are currently concentrating on takeout and online sales.

As per some reports, more restaurants opened in the fourth quarter of 2020 than in the third quarter of 2019. If you are wondering how to start a restaurant business in India? then you have come to the right place. 

It's not like the Restaurant business is no longer successful in India, the thing is that the playing field has changed & a new eCommerce factor has emerged. 

Table of Contents

1. How to start a Restaurant business in India in 2022? 

2. Choose your niche (type of restaurant & its general structure) 

3. Determine Costs & Gather Funds 

4. Employ skilled staff 

5. Organized Your Menu Properly 

6. Focus On Your Delivery Process 

7. Marketing 

8. Licenses required to open a restaurant in India in 2022 

9. Create a Restaurant Website with JoonWeb 


How to start a Restaurant business in India in 2022? 

Here are a few suggestions that can keep in mind while you try to open a restaurant in India in 2022: 

Choose your niche (type of restaurant & its general structure) 

“What would the service style of my restaurant be?” should be your first question to know how to start a restaurant business in India before you obtain finances, consult with experts, or even extend your fingers.

Your firm as a whole as well as all the future phases will be impacted by the response. 

There are various options for you to start from (the majority of them will be impacted by your location). Some of the restaurant types include- casual dining, family restaurants, cafes, bakeries, food carts/tracks, stalls, & more. In India, the majority of people still avoid going to restaurants & they prefer to eat outside due to its cheap prices. 

After that, focus on the style & layout of the restaurant you are going to open. Local, heritage food, continental, chef’s special – successful restaurant businesses tend to take inspiration from local food pallets and preferences. Even popular culture, art and sports can be sources of inspiration. 

And finally, ascertain your service style & concept. Your interior design strategies should take practices like social distancing into account if you want to advance in Covid-19. Therefore, there should be a limited number of face-to-face encounters during the on-premise client journey. Additionally, the seating arrangement must enable at least 2 meters between tables. 


Determine Costs & Gather Funds 

Like all businesses, the restaurant industry has expenses. It's a good idea to have a solid understanding of operations and setup costs before launching your business. 

Does not matter what line of business, you operate in, you will have to cater for costs like food expenses, Labour/employee costs, rent/bills, equipment costs, license charges, & marketing costs. 

Starting a restaurant is an expensive endeavor. A decent-sized restaurant's start-up costs can range from a few lakhs to more than INR 1 crore, according to several real proprietors, depending on the location, cuisine, and other elements. Here are a few ways to fund your start-up. 

  • Use your savings: You are in luck if you can invest the money that you have on hand. You just avoided a headache and avoided one of the biggest obstacles. 
  • Debts: Future business owners and entrepreneurs can borrow money from many banks. There is a lot of paperwork involved in the process, and they do search for collateral. 
  • Foreign investors: If your business idea has weight in it & you have the capability to convince others 

Employ skilled staff 

Have a clear understanding of the roles you want to hire for before you start a restaurant business and begin the hiring process. Most companies ought to employ people for these positions. 

  • Restaurant manager: Your restaurant manager will keep an eye on day-to-day activities, settle disputes, and make sure everything runs properly for your company. The ideal applicant should have at least some prior restaurant staff management experience. 
  • Experienced Chefs: Like an artist, a competent cook adds his or her own creative touch to the recipe to create mouth-watering dishes. Whether they work in a high-end restaurant or a food cart, your chefs and cooks should be enthusiastic, skilled, and effective team players. 
  • Delivery Team: The serving and delivery crew will engage with your clients the most. You require a person who can remain polite and professional under pressure. 

Organized Your Menu Properly 

You may not realize it, but your menu plays a huge role in retaining your customers. Your meal is the main thing you sell. Your company could be made or broken by it. You should therefore carefully plan out your cuisine. 

 Start by taking your customers' preferences into account. Do they adore the meals here? Then offer popular foods and give well-known international dishes a local spin. In a nutshell, finalize your menu by combining both customer preference and creativity.

Focus On Your Delivery Process 

Successful restaurant business has always required a top-notch meal delivery service. However, client choice has shifted even more in favor of online delivery after the COVID-19 epidemic. Here’s what you can do about the delivery aspect of your business. 

  • Create a delivery plan: A well-planned process for delivery serves as the foundation. The first thing you need to decide is the things you wish to deliver. Some foods may rot or begin to smell bad more quickly than others. They ought to be removed from the delivery menu. 
  • Hire your delivery team: Hiring a delivery team is a simple process. Make print adverts and publicize your needs on social media. However, before distributing appointment letters, conduct a background check. 
  • Third-Party delivery service: Most restaurants, at least in the beginning, cannot afford a large delivery team. Partnering up with a delivery service provider can be beneficial to them. Zomato, Swiggy, and Dunzo are among some of the best delivery partners out there. 


The restaurant industry has a low entry hurdle. Anyone, at any time, can start a business. This makes the restaurant industry extremely competitive. 

 It is critical to remain on your consumers' radars. And, more than ever, you'll need a solid web marketing approach to get there. It makes no difference whether you live in a metropolis or a city with Tier 2 or Tier 3 status.

Marketing is a very vast concept & it takes a lot of time for one to make a sound marketing strategy. Here are some of the best marketing strategies that can boost your business growth 

Licenses required to open a restaurant in India in 2022 

To start a restaurant business legally and successfully, you must obtain licenses and pay taxes. Yes, there is a lot of paperwork. However, if you know where and how to apply, you may receive your licenses quickly. 

  • FSSAI License: The FSSAI license should be obtained first for any type of restaurant operation in India, including dark kitchens. An FSSAI license indicates that your company meets the government's food safety regulations. 
  • GST: As with all enterprises (with a turnover of more than 20 lakhs), you must obtain GST registration in accordance with the guidelines of the Government of India. Online registration for GST for your restaurant is simple. It is usually sanctioned within 5-7 days with minimal documentation. 
  • Health/Trade License: Local municipal authorities or the health department might issue you a health/trade license. It would cost you between INR 500 and INR 50000, depending on your state's regulations and other circumstances. Typically, you must wait a maximum of 60 days after submitting the form. 
  • Eating House License: An eating house is defined by Indian law as any establishment that serves food and beverages to the general public. Restaurants of all sizes must have an eating house license because they are, by definition, eating houses. 
  • Fire Department NOC: A fire department NOC (no-objection certificate) is required for any food company. This assures that the food establishment does not skimp on fire safety. This certificate costs nothing. 

Create a Restaurant Website with JoonWeb 

At JoonWeb, you can make a restaurant website in minutes. Whether you want an informative website or you want to create an eCommerce website, JoonWeb is the perfect place for you. JoonWeb offers you a multi-location eCommerce builder platform where you can list unlimited products & expand your restaurant business beyond limits. 

Whether you want to have third-party shipping integration or your own delivery services, JoonWeb is flexible enough to cater to all your needs. 

At JoonWeb you get to: 

  • Easily track your inventory location 
  • Sell unlimited products 
  • Import/export bulk inventory
  • Smartphone store management & much more 

To know more about the features of JoonWeb, read here.  

To start a restaurant business, the owner should be able to fulfill various roles or have partners and employees who can fill those roles.
Sole proprietorships are the question to this answer as they are basic to start and the income from the business is included under own personal income for tax purposes.
A relevant plan must be followed that includes projected balance sheets, promotional strategies, cash flow analysis, market study, and income statements.
By Puja Roy
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