Starting a restaurant in Delhi is a dream for many food lovers and entrepreneurs. The capital city of India is full of opportunities, vibrant crowds and a culture that loves eating out. But the first question most people ask is: how much does it cost to open a restaurant?
The truth is, opening a restaurant depends on several factors like the type of restaurant, location, size, theme, and staff. In this detailed guide, we will talk about the restaurant setup cost, how much money you may need and important steps to plan your budget wisely, which will increase your sales.
What is Best Place to Open a Restaurant?
Delhi is not just India’s capital, it is also one of the food capitals of the world. From fine dining to street food, every corner of Delhi offers something unique. The growing culture of eating out has made restaurants a profitable business here.
But before you dive in, it’s important to understand how much is required to open a good restaurant in India and what factors can influence your budget.
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What is Average Cost to Open a Restaurant?
If you are wondering how much money is needed to open a restaurant, here’s a breakdown:
- Small Cafe or QSR (Quick Service Restaurant): ₹10 to 20 lakhs
- Casual Dining Restaurant: ₹20 to 50 lakhs
- Fine Dining Restaurant: ₹50 lakhs – ₹1.5 crore+
So, the restaurant setup cost depends on your business model and investment capacity. Let’s explore the detailed expenses one by one which helps you to understand better about how restaurants work to increase there sales
What is Major Costs Involved in Opening a Restaurant?
1. Restaurant Location and Rent
Location is one of the most crucial factors in determining the cost of opening a restaurant. Popular areas like Dwarka, Greater Kailash, and Vasant Kunj will cost more, while local markets or developing areas may be cheaper.
- Average monthly rent in prime areas: ₹2 to 5 lakhs
- Security deposit (usually 3 to 6 months rent): ₹10 to 20 lakhs
Choosing the right location ensures better footfall and higher sales.
2. Licenses and Permits
To open a restaurant in India, you need several licenses. This is a fixed cost that cannot be avoided.
- FSSAI License: ₹5,000 – ₹10,000
- Health/Trade License: ₹10,000 – ₹50,000
- Liquor License (optional but expensive): ₹5–15 lakhs
- Fire and Pollution Licenses: ₹10,000 – ₹50,000
- Music License: ₹10,000 – ₹20,000
Altogether, license costs may go up to ₹5 to 20 lakhs, depending on your type of restaurant.
3. Interior and Ambience Setup
The interior design and ambience make a big difference in how customers feel. Whether you want a cozy cafe, a modern casual dining space, or a luxury fine dining restaurant, the cost varies.
- Small cafe setup: ₹5 to 10 lakhs
- Casual dining: ₹10 to 25 lakhs
- Premium fine dining: ₹30 lakhs to ₹1 crore
Remember, restaurant setup cost is an investment because interiors attract customers and build your brand identity.
4. Kitchen Equipment and Setup
A strong kitchen is the heart of any restaurant. You will need stoves, refrigerators, ovens, utensils, storage racks and other essentials.
- Small cafe kitchen: ₹5 to 10 lakhs
- Casual dining: ₹10 to 20 lakhs
- Fine dining: ₹20 to 40 lakhs
Buying durable, high-quality equipment reduces future repair costs.
5. Staff Salaries and Training
Staff is your biggest recurring cost. From chefs to waiters, everyone plays an important role in smooth operations.
- Chef salary: ₹25,000 to ₹1 lakh per month (depending on expertise)
- Waiters and support staff: ₹10,000 to ₹25,000 per person per month
- Manager: ₹30,000 to ₹70,000 per month
For a medium sized restaurant, you may spend ₹2 to 5 lakhs monthly on salaries.
6. Marketing and Branding Costs
No matter how good your restaurant is, you need marketing to attract customers.
- Logo and branding: ₹50,000 to ₹2 lakhs
- Website and app: ₹1 to 3 lakhs
- Digital marketing (ads, social media, SEO): ₹50,000 to ₹2 lakhs monthly
- Offline marketing (flyers, hoardings, banners): ₹50,000 to ₹1 lakh
Marketing costs are ongoing, but they are sure to increase your restaurant sales
7. Raw Materials and Inventory
Stocking up on raw materials like vegetables, meat, grains, spices and beverages is another important cost.
- Monthly inventory cost: ₹2 to 5 lakhs (depending on restaurant type)
Maintaining high quality raw materials builds customer trust and repeat business.
8. Technology and POS Systems
Modern restaurants rely on technology for billing, online orders and inventory management.
- POS system: ₹50,000 to ₹2 lakhs
- Online ordering integrations: ₹50,000 to ₹1 lakh
- CCTV and security: ₹50,000 to ₹1.5 lakhs
What is Total Estimated Cost to Open a Restaurant?
Here’s a quick summary of costs:
Type of Restaurant | Setup Cost Range | Monthly Running Cost |
Small Cafe/QSR | ₹10–20 lakhs | ₹2–5 lakhs |
Casual Dining | ₹20–50 lakhs | ₹4–8 lakhs |
Fine Dining | ₹50 lakhs – ₹1.5 crore+ | ₹8–20 lakhs |
So, if you’re asking how much it costs to open a restaurant in India, the answer varies between ₹10 lakhs to ₹1.5 crore+, depending on scale and location.
Top 5 Tips to Reduce Restaurant Setup Cost
- Start small with a cafe or QSR before expanding.
- Choose an upcoming locality with lower rents.
- Lease kitchen equipment instead of buying.
- Use social media marketing instead of heavy offline ads.
- Build a unique concept to attract word of mouth publicity.
Step by Step Process: How to Open a Restaurant in India?
If you are new to this, here’s a quick step-by-step checklist:
- Research the Market – Understand Delhi’s food trends and demand.
- Choose a Concept – Cafe, casual dining, fine dining, or cloud kitchen.
- Create a Business Plan – Include setup cost, marketing and growth plan.
- Arrange Funding – Use savings, loans, or investors.
- Get Licenses – Apply for FSSAI, trade license, fire safety, etc.
- Design the Restaurant – Interiors, kitchen, furniture.
- Hire Staff – Train chefs, managers and waiters.
- Plan Marketing – Build a brand presence online and offline.
- Launch Soft Opening – Test the restaurant before the grand opening.
- Grand Opening Event – Attract customers with offers and promotions.
Why Planning Matters in Restaurant Setup
Many restaurants shut down within the first year due to poor planning. Understanding restaurant setup costs and preparing a realistic budget is the key to success. A well researched plan helps you save money and survive the competitive indian market.
FAQs About Restaurant Setup Cost
According to Jagrandost. At least ₹15 to 20 lakh for a small cafe or quick service outlet.
Around ₹50 lakh to ₹1 crore, depending on size and location.
No, only if you plan to serve alcohol. It can cost ₹5 to 10 lakh or more.
Rent, salaries, raw materials, utilities, license renewals and marketing.
Usually 2 to 3 months for licenses and setup, longer if alcohol service is included.
