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India, being one of the most diverse countries in the world has different cultures, clothing, religions and last but not the least different cuisines. Restaurants in India follow the same trend, where you can find hardcore region-based restaurants that offer specific delicacies. In contrast, many restaurants play safe by offering multiple cuisines.

As the streets are full of local vendors and roadside food, it is a difficult task for restaurants and cafes to match the local taste.

It all comes down to one question: – How to set-up and run a successful restaurant business?

To answer this question, we have compiled a step-by-step guide that will help you evaluate different aspects before setting up a restaurant/cafe.

Analyzing the Local Taste via Business Feasibility Report

Analyzing the Local Taste via Business Feasibility Report

A Business Feasibility analysis helps you in defining key elements of your restaurant that would make it a sustainable business in the long run and achieving break-even quickly by getting great ROI. It helps you with:

  • Defining USP of your restaurant

  • Pricing the different dishes right

  • Number of walk-ins

Defining USP of your restaurant

Defining USP of your restaurant

In order to know this, you have to do a detailed analysis of the market, dishes/cuisines and the kind of audience you are targeting. A SWOT analysis will give you all the insights about your strengths that you can capitalize, weaknesses to work on, new opportunities to deploy fresh concepts and threats from rival restaurants/environment.

Pricing the different dishes right!

Pricing the different dishes right

The next step will be to decide the pricing of your dishes. A good market research will help you to get insights of prices offered by other restaurants in the area. This will help you to avoid over-pricing or under-pricing your menu items. This, in turn, gives your customers the “value for money” experience and give them the reason to come back to your restaurant.

Number of walk-ins

Number of walk-ins

Now that you know your USP and priced your products just right, it is time to decide the number of walk-ins daily to achieve ROI. This will be done with a market feasibility analysis which will help you to identify the average number of walk-ins you need daily to maximize profit.

Develop a Detailed Project Report (Business Proposal)

Project Report (Business Proposal)

Now that all the research and planning has been done and you are ready to execute your business plan. But wait, you are still lacking something i.e. a Business Proposal. A Project Report will help you in developing a strong value proposition in your business proposal for the investors and promoters of your restaurant. It will contain details about your restaurant, its location, market prospects, resource availability, cash flow, technical arrangements, etc.

Developing a good project report is essential for your project, as it can make or break your image in front of the investors. Financial analysis helps you to make projections about revenues, net profits, the gross margins, etc. while keeping account of capital cost, fixed cost, and operating cost.

Recipes or the ingredients which have not been used will lead to food wastage and more food wastage will lead to more loss. On the other hands, a bad supply chain can lead to of food wastage.

Making SOPs (Standard Operating Procedure) for recipe management, and supply chain will not only reduce the wastage of food throughout the supply chain but will also help you to increase the restaurant’s efficiency by reducing its operating expenses and optimizing the delivery time. This will ultimately lead to an increase in the effectiveness of the restaurant and its staff.

Devise a Suitable Implementation Strategy

Implementation Strategy

Going online

In order to reach a larger customer base, your restaurant needs to be on the internet. This means, your restaurant must have a presence on social media sites like Facebook, Instagram, etc. Websites like Zomato, Burrp, Swiggy, etc helps to advertise the restaurant to local as well as to customers from other regions. You may also consider exploring the online marketplace by developing an online food ordering portal of your own. It is best to have SOP IT Integration consulting first before developing such a portal since it may involve ERP Implementation.

Hiring the right staff

Choosing the right people for your staff is as crucial as it is to choose the right ingredients for a dish. Your staff’s hospitality toward your customers will make sure that your restaurant has a bright future. Developing a detailed SOP manual that defines how staff should interact with the customers helps in ensuring that customers are handled the right way no matter who is handling them.


Restaurants and cafes are a booming business in India, but one should keep in mind that only good planning and execution can make a restaurant a grand success. YourRetailCoach provides Business viability, SOP development, Market Research, and Business Plan consulting services. To connect, you can drop a mail at [email protected] or call at +91-9860-426-700.


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