How to Start Restaurants with Bars in India
You will get to know about the investments, what kind of location you need, the required workforce, and the licenses needed for opening and running a restaurant cum bar.
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Overview: Restaurants with Bars
In this particular article, we’ll discuss how to open a successful restaurant cum bar in India. You will get to know about the investments, what kind of location you need, the required workforce, and the licenses needed for opening and running a restaurant cum bar.
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However, before you move ahead, you need to decide what kind of bar cum restaurant you are going to open. There are six types of bar cum restaurant formats, namely-
- Club
- Specialty Bar
- Brewpub or Beer Bar
- Sports Bar
- Neighbourhood Bar
- Franchise bar
Once you have decided on the format, you can now consider the other requirements for opening a restro bar.
How to Decide the Location Of the Restaurant And Bar
The restaurant cum bar, unlike casual dining establishments, requires a space of between 5,000 and 10,000 square feet, ideally distributed over one to two floors. The current tendency is to include both an open and a closed seating space so that consumers can enjoy both types of ambiance depending on their preference. Aside from that, look for good high-end retail districts and markets, as well as high-end malls near office buildings. According to experts, the greatest spots to open restro pubs are near office complexes with more than 10,000 to 20,000 employees because foot traffic is considerable. During post office hours, employees are more likely to turn around and go to the local bar or pub to catch up with their colleagues and friends. However, expanding a 5000-square-foot room to a 10,000-square-foot space isn't straightforward. The typical rent for a space of 5,000 square feet is between Rs 1.5 lakh and Rs 2 lakh (depending upon the location). You should also bear in mind that simply being in the proper market isn't enough; you must also have the right accessibility in order to attract clients and foot traffic. Select a location with a dedicated parking space. The overall cost of obtaining premises for a bar or restaurant is approximately Rs 6 lakhs (one month advance and two-month security). Here's an in-depth look at how to pick the best location for your business.
Choosing the Right Kitchen Equipment and Raw Material
A solid backend is important for your restaurant's cum bar. Study Kitchen equipment and high-quality raw materials aid in the backbend’s flawless operation.
Having the correct equipment not only makes the entire process easier, but it also reduces the reliance on highly skilled workers. According to industry experts, investing in the correct equipment, such as burners, fryers, and ovens, can save you a lot of money in the long run because they produce high-quality and speed results. If you wish to save money, some of the equipment, such as working tables and racks, can be purchased and used. The entire cost of the kitchen setup is also determined by the food to be served.
Kitchen equipment might cost anything between Rs 5 lakhs and Rs 7 lakhs. Furthermore, the cost of raw materials at the time of installation could range from Rs 1.5 lakhs to Rs 2 lakhs. And, because we're also constructing a bar, the liquor storage might cost anything from Rs 10-Rs 12 lakhs. Aside from cooking equipment, nice tableware is essential, as customers pay close attention to every detail. For a restaurant and bar, a good crockery and bar set-up will cost Rs 6 lakhs.
Deciding the Service Area of the Restaurant Cum Bar
Customers frequently go to restro-bars to unwind and have fun. As a result, adopt a restaurant environment and colour scheme that encourages this sensation. For restro-bars, warm colors are frequently selected. Aside from that, the furniture should be as comfortable as possible. As a result, additional soft plush seats, sofas, loungers, and comfortable chairs are recommended for guest meals. You can also employ an interior designer to give the restro-bar a complete appearance and feel. Professionals may charge you upfront, but if your bar or restaurant succeeds, the expense will be low in the long term. The overall cost of the interiors, including furnishings, might be in the range of Rs 15 lakhs to Rs 20 lakhs. Apart from that, a good POS system is a must because the bar or restaurant's inventory is large and tough to maintain. Consider your POS system as more than simply invoicing software; it's an investment that may help you better run your restaurant and save money in a variety of ways. Some of the must-have features in a restaurant POS include integrated inventory management, CRM, in-depth reporting, and analytics. The simple POS software will set you back roughly Rs 30,000 per year, but it is recommended that you invest in the comprehensive restaurant management software, which will save you money in the long term. Find out how to choose the best pos software for your restaurant in this article.
Licenses and Registration Needed For Restro-bars
More licenses and approvals are required for the restaurant and bar model than for any other restaurant format. For your restro-bar to open, you'll need at least eight licenses.
The licenses required to open a restaurant and bar are as follows-
- Liquor License: A liquor licence is a permit issued by the Excise Department of a state that authorises people to make, transport, and sell alcoholic beverages within that state. Businesses with a liquor licence can sell and market alcohol. In legal terms, a liquor licence is a legal permit granted by the State Excise Department to those who wish to expand their business by delivering alcoholic beverages or drinks at a certain location. The employees of the company must follow the laws and regulations set forth by the state government.
- Shop Establishment License: The Shop and Establishment Act (the "Act") is enacted by each state. The Act's general requirements, however, are the same in every state. The Labor Departments of the several states are in charge of enforcing the Shop and Establishment Act. All stores and business establishments in the state are governed by the Act. The registrations are issued by the individual states under the Act, and hence they differ slightly from one state to the next. Under the Act, shops are defined as places where goods are sold to clients, either retail or wholesale, or where services are provided to them. It encompasses offices, godowns, storerooms, and warehouses that are used in the course of a trade or business.
- Police Eating House License: An eating house licence is a requirement for operating a business where any type of food or drink is legally available for consumption. The Delhi Police Act governs the situation. The licence, along with other licences, is required when starting a food business in India. The first step in understanding the requirements for acquiring an eating house licence is to define what an eating house is. "Any place that offers various things linked to food or drink to the general public for consumption is classified as an eating house," according to the definition. This includes all stores, restaurants, dhabas, food trucks, cafes, and other food and beverage establishments.
- Local Municipal Authority License: It is regulated to ensure that the applicant is not posing a health hazard or causing a nuisance by engaging in any illegal trade. The primary goal of a licence is to protect the general public from health hazards and nuisances that a trader or business may cause. A trade licence is necessary to control trade and ensure compliance with government rules and safety norms.
- FSSAI License: To run a food product business, you'll need a Food License Registration certificate. To manufacture, distribute, or transport food goods, you must first register with the Food Safety and Standards Authority of India (FSSAI). The FSSAI was created by the Government of India's Ministry of Health and Family Welfare. The Food Safety and Standards Authority of India (FSSAI) was founded in 2006 under the Food Safety and Standards Act. The FSSAI Certificate and FSSAI License are the same thing, and they both guarantee quality, purity, and other crucial aspects that buyers can trust.
- Fire Safety Certificate: In a country with incredible skyscrapers and wealthy workplaces, fire accidents are relatively prevalent. Though magnificent and delicate in appearance, such structures are vulnerable to spontaneous fires, which is especially true in a metropolis like Delhi, given the city's population increase and unplanned growth. The Building Bye-laws were adopted in a notification of the Delhi government dated 23rd June 1983, which was modified time and time again at later stages, with the goal of ensuring the safety of such buildings and its residents. The procedure for obtaining a fire licence in Delhi is discussed in this article.
- GST Registration: GST stands for goods and services tax, and it was implemented on July 1, 2017 in India, replacing approximately 15 additional cascading taxes imposed by the Central and State governments. Goods and services are taxed at varying rates under GST, depending on the categories established by the Indian government. 0 percent, 5%, 12%, 17%, 18%, and 28% are the various tax slabs. Rough precious and semi-precious stones are taxed at a special rate of 0.25 percent, while gold is taxed at 3%. In addition, a 22 percent CESS on top of a 28 percent CESS Aerated drinks, luxury autos, and tobacco goods are all subject to GST. GST replaced other indirect taxes, reshaping the country's 2.274 trillion-dollar economy considerably. GST registration is required for all enterprises doing business in India, whether they are purchasing, selling, or delivering services.
Other licenses necessary include a music license, an environmental clearance certificate, and a fire department license. Liquor licenses, FSSAI licenses, GST registration, and local municipal health licenses are the most vital to obtain before starting a restaurant. The remaining funds can be applied for after the bar/restaurant is up and running, which should be within the following two to three months. The overall cost of the permits might be in the region of Rs 10 lakhs.
Workforce or Manpower needed for a Restro-bar
Well-trained personnel saves time and money for your business while also increasing profitability. As a result, ensure that every member of your team, from wait and kitchen workers to management, receives strong and ongoing training in order to be competitive in this sector. Working with skilled and renowned trainers is also essential for a successful outcome.
Deciding the Staff Uniform
Customers have a positive image of a well-dressed staff. Because a restaurant and bar is usually a large facility, your staff's appearance is much more vital. Shirts and trousers are appropriate for waiters, whereas t-shirts and chef coats are appropriate for kitchen employees, depending on their position. Employee uniforms should be properly branded at the start of operations to offer your restaurant a more upscale vibe. Good Chef coats (25 units), shirts, trousers, t-shirt, and cap (50 pieces) cost roughly Rs 75,000 and will endure for at least six months of operations.
Marketing the Right Way
While attending to the restaurant's essential needs, the minor and finer nuances are frequently overlooked. Your menu, for example, may appear to be nothing more than a piece of paper with your food written on it, but it is so much more. A well-designed menu with your restaurant's logo goes a long way toward restaurant branding, and it also helps you sell more drinks. Learn how to build a terrific bar menu that will boost your bar revenue. It is recommended that you employ a professional designer who can assist you in creating the desired logo and menu for less than Rs 2,000. Aside from that, a well-designed light board, a table menu, and brochures for offline promotion are all important components of marketing. It is recommended that you invest in creating a good and appealing table menu. The menus range from opulent hard cardboard to a laminated pamphlet. If you have the funds, you can also use social media to launch paid ads and campaigns for digital marketing. Use these suggestions to market your new restaurant or bar on the internet.
It's also vital to explain each dish in one line to make it easier for customers to order. Keep in mind that your personnel should be trained to upsell the menu. In today's internet age, online tie-ups are also necessary to gain client traction, and a meeting with the food-tech portal's alliance team will not cost more than a meeting with the alliance team. A restro-bar requires higher initial capital expenditure, but it is also one of the most successful and high-ROI restaurant formats. However, it is also one of the most difficult forms to master, requiring the restaurant owner to exercise tremendous caution and commitment. Because you'll be serving a larger number of guests and managing a larger location, your participation as an owner is essential to the success of your restaurant and bar. It's critical that you keep track of your business, from inventory to sales, and that you stay current with daily reports. For example, Post's Cockpit App provides real-time information and updates about your restaurant company, which you can view immediately from your phone.
About the Author
Surbhit Sharma
Content WriterI have worked for many internet blog pages and news portals. currently, I am working as a content writer for Corpseed Pvt. Ltd. I like to write blogs and articles in the field of different services.
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