How much it cost to open a restaurant in india?
That’s a tricky one, as the cost varies wildly. You could get a small takeaway or cloud kitchen started for around ₹10-15 lakh. For a proper sit-down restaurant in a city like Mumbai or Delhi, you're looking at anywhere from ₹40 lakh to well over ₹80 lakh. Your biggest costs are always rent, licenses, and the kitchen fit-out. The final number really just depends on your location and concept, so a solid business plan is a must.
Instead of giving a fixed figure, think of restaurant costs in categories: fixed capital investment (setup, furniture, kitchen), working capital (raw material, salaries), and hidden costs (repairs, utility bills). In India, a small food truck can start with ₹5–7 lakhs, but a family-style restaurant might cost ₹25–40 lakhs. If you aim for high-end fine dining, ₹1–2 crores is realistic. Costs can be reduced by renting second-hand kitchen equipment and starting with a smaller menu.
Opening a restaurant is like opening a dream box—but dreams come with price tags. Apart from monetary investment, be ready for at least 6 months of losses before you break even. Salaries, spoilage, low footfall at the start—all of this eats up cash flow. If you only look at setup costs, you’ll underestimate. A safe thumb rule is to have 1.5 times your setup cost available as backup working capital.
The cost of opening a restaurant in India depends heavily on location, concept, and scale. For a small café or fast-food outlet, you may need ₹10–15 lakhs. This includes rent, kitchen setup, licenses, staff salaries, and marketing. If you’re considering a fine-dine restaurant in a metro city, the cost can easily go above ₹50 lakhs to ₹1 crore. Rent alone can consume 20–30% of your budget in cities like Mumbai or Delhi. Careful planning and a realistic financial model are essential before jumping in.
I started a small casual dining restaurant in Pune in 2021, and my total initial cost was around ₹22 lakhs. The biggest expenses were: - Kitchen equipment: ₹6 lakhs - Furniture & interiors: ₹5 lakhs - Licenses: around ₹2 lakhs (FSSAI, GST, liquor license optional) - Initial stock & raw material: ₹1 lakh - Rent deposit: ₹5 lakhs - Marketing: ₹1.5 lakhs So yes, even a small restaurant can require substantial funds. It’s best to overestimate rather than underestimate.
Many entrepreneurs assume metros are the best choice, but tier-2 cities can be cheaper and profitable. For instance, in Jaipur or Nagpur, you can open a mid-range restaurant with ₹15–20 lakhs compared to ₹40 lakhs in Mumbai. Rentals are lower, labor is cheaper, and competition is less intense. If your cuisine has local appeal, you may succeed faster outside big metros.