Thursday, March 24, 2011

Investment for various Food businesses


I received a query on the total investment one would need for setting up and operating a food business. Though the exact investment will depend on the concept and the location, the ranges given below should be useful for those ideating about setting up a restaurant. These are applicable in Bangalore. Please note that the figures below do not include a liquor/beer license - A liquor license currently costs around 50-60 lakhs and a draught beer only license will cost around 15-20 lakhs. I will write a separate post on liquor/beer licenses with specifics and the process involved. Also note that the figures include some working capital provisions that you will need (pre-operating expenses, initial cash flow requirements till you break-even etc.)

1) A Fine-Dining Premium Restaurant (80-120 seater) - 1.5 to 2.5 Crores e.g. Barbeque Nation.
2) A Casual Dining Restaurant (60-80 seater) - 60lakhs to 1 Crore. e.g. Rajdhani
3) A Budget restaurant (40-60 seater) - 40 lakhs to 60 lakhs. e.g. Mast Kalandar
4) A Coffee Shop (40-60 seater) - 40 lakhs to 60 lakhs. e.g. Coffee Day
5) A take-away joint/Stand and eat place - 15 lakhs to 25 lakhs. e.g. A small Darshini
6) A Cake shop/Ice-Cream Parlor - 15 lakhs to 20 lakhs. e.g. Corner House

Tip: If you manage the investment tightly you may be able to save reasonable amounts of money - but I would strongly advise having the above amounts available from a planning/budget perspective and then managing your costs really tightly.

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13 comments:

  1. nehagOctober 21, 2011 at 11:18 AM

    Hey,
    i am looking forward in opening a restaurant in madhya pradesh. I have no idea about business plans and am wanting to make one for getting financial help. So is it possible for you to give an insite on business plan for a restaurant like the equipment required and the rough costing and everything. my email is zz.neha@gmail.com
    Thanxx

    ReplyDelete
  2. JayanthNovember 22, 2011 at 6:43 PM

    Hi Neha - there are several posts on this blog that will provide the information you are looking for. If you want to a formal business plan, I do not have one, but will try and create a template and post it on the blog.

    ReplyDelete
  3. UnknownFebruary 11, 2014 at 12:24 AM


    1) My Restaurant is a 50 seater well branded & reputed Fine Dining restaurant without Bar (7 months old on rent for 4 yrs-extendable as per my requirement) and is located in center of posh residential area where there is huge potential.I am the proprietor of the Restaurant with more than 30 yrs of experience in this line backed up by professional degree in Hotel Management and work experience in reputed five stars Hotels like-Oberoi"s& Le Meridien in New Delhi.

    2)At present we are having a monthly sales of INR 7lakhs and excellent customer base with good feedback from our customers.You can visit our site and facebook page to view more details of the Restaurant on the links given below-


    1) www.ddtandoorixpress.in
    or
    2)our FB page-/dillidarbar.tandoorixpress

    3)We advertise by distribution of pamphlets on regular basis and we have maintained good standards of food & service which gives a mouth to mouth publicity to get new customers and also repeat customers.

    4)With our standards there is not much competition in the area we operate except some local eateries and area has huge growth potential as it is densely populated with upper middle class&middle class customers.

    5)We have a professionally managed team of 25 employees and our aim is to maintain the standards of food&service which we have set for ourselves.

    6)At present i am looking for funding of approx.INR 20,000,00 -INR 30,000,00 (TWENTY -THIRTY LAKHS RUPEES) as loan/investment on which 2%M.G+3%of sales/month can be given as returns with a legal M.O.U B/W us and money is required for working capital and expansion in the out door catering infrastructure which will give us tremendous boost in revenues and i expect that with the funds i can easily have a turnover of INR 2 Crores/annum in next 6-8 months.My major trouble area is FUNDS as i have already invested more than INR 65lakhs and have exceeded my budget and hence i am seeking investors to fund my project to achieve the levels i have desired for.

    ReplyDelete
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