When starting your restaurant, almost everything requires you to allocate money and budget, from renting a space to hiring staff to purchasing kitchen equipment. To ensure that your budget is used efficiently, you must plan meticulously. This section will look at some of the most basic costs you must consider when deciding to open a restaurant. Remember that the price will vary significantly depending on the location, brand of choice, type of restaurant, and so on.

Rental fees

Perhaps the most important cost to consider when starting a restaurant. Various factors would influence the price per unit (examples being location, the restaurant’s total size, materials, finishing, interior designs, and amount of furnishing already in place). A Food Truck, for example, would take up almost no space, while a QSR restaurant or a Cafe would take up very little. Dine-in and casual restaurants may take up multiple floors, and renting them out will be prohibitively expensive.

A restaurant in India typically requires between 1200 and 1500 square feet of space. This would differ from city to city. Tier 1 cities such as Delhi and Mumbai would be expensive, whereas tier 2 cities would be more affordable. Different cities would have additional land costs per square foot allocated. A restaurant owner would have two options here. First, secure a location. Second, rent it out. Purchasing could be costly, ranging from 50 lakh INR to 1 crore INR. On the other hand, rent would be 30K INR – Rs. 1 Lakh INR per month.