Learn the essential steps to launch your restaurant and secure the required financing.
Starting a restaurant business can be an exciting venture in India, a country with a rich and diverse culinary heritage. It offers an opportunity to tap into a booming food and hospitality sector. However, the path to success involves careful planning, a solid business model, and securing the right kind of financing.
A well-crafted restaurant business plan is essential to guide your efforts, attract investors, and secure loans. Your business plan should detail the concept of your restaurant, market analysis, financial projections, marketing strategies, and operational plan. By securing financing, you can cover startup costs such as rent, equipment, staff salaries, inventory, and marketing.
Know how to start a restaurant business in India and secure financing to bring your idea to life.
There are many important steps involved in the process of creating a robust restaurant business plan. Each is crucial to ensure smooth operations and long-term success. Here’s a step-by-step guide:
Step 1: Define Your Restaurant Concept
Decide the type of restaurant you want to open, such as casual dining, fine dining, fast food, or a café. This concept will guide your restaurant’s décor, menu, target market, and pricing strategy.
Step 2: Create a Business Plan
A solid business plan is essential to secure financing and ensure smooth operations. Your plan should include a detailed market analysis, financial projections, operational plans, and a description of your restaurant’s concept.
Step 3: Secure Financing
Depending on the size and location of your restaurant, you may need significant capital to cover initial expenses. Explore business loans and other funding options available through various lenders to kickstart your business.
Step 4: Choose a Location
Location is critical to your restaurant’s success. Look for a place with good foot traffic, visibility, and accessibility. Consider factors such as the local demographics, competition, and rent costs.
Step 5: Hire a Team
Hire experienced chefs, kitchen staff, and front-line employees to ensure smooth operations. It’s essential to choose people who align with your restaurant’s ethos and are capable of providing excellent customer service.
In India, there are several registrations and licenses you need to obtain before starting a restaurant. Have a look at why understanding these are vital to your restaurant’s business plan:
The Food Safety and Standards Authority of India (FSSAI) is mandatory for any food business. Ensure you get the necessary registration from the FSSAI so that your business is compliant with health and safety standards.
GST registration is mandatory if your restaurant’s annual turnover exceeds the specified limit.
This license is mandatory for all businesses, including restaurants, to operate legally in India.
If your restaurant plans to serve alcohol, obtaining a liquor license from the local excise department is necessary.
Depending on your location, you may need a health trade license from the local municipal corporation.
What you require is a solid financial restaurant business plan. A well-thought-out business model and appropriate financing options are key to success. Let’s explore the uses of business loans for a restaurant.
Take a look at the uses:
Equipment and Furniture
Loans can help cover the cost of kitchen equipment, furniture, and décor to create a functional and inviting atmosphere.
Inventory Purchase
Business loans can assist in purchasing essential inventory like ingredients, packaging, and other consumables that you’ll need to run your restaurant.
Rent and Lease Payments
A significant portion of your restaurant's expenses will go toward rent, especially in prime locations. Financing can help cover these expenses, especially during the early months when revenue is low.
Marketing and Promotion
To attract customers and build brand recognition, you'll need to invest in marketing strategies like social media ads, influencer partnerships, and promotional events. Loans can provide the financial cushion needed to implement these strategies.
A business loan offers you financial support for managing your operations, expanding, or investing in new opportunities. Learn about the various benefits of a business loan and support your goals:
A business loan allows you to access the capital you need to open and sustain your restaurant without waiting for long periods.
Most lenders offer flexible repayment options that suit your business's cash flow, which can ease the financial pressure.
The interest paid on business loans is often deductible as an expense, reducing your taxable income.
Lenders |
Starting Interest Rates (p.a.) |
Bajaj Finance Limited |
14% p.a. |
Aditya Birla Finance Limited |
22% p.a. |
IIFL Finance |
16.50% p.a. |
FlexiLoans |
18% p.a. |
KreditBee |
18% p.a. |
Lendingkart |
19.20% p.a. |
Ambit Finvest |
20% p.a. |
InCred |
24% p.a. |
UGRO Capital |
24% p.a. |
Indifi |
22% p.a. |
Credit Saison |
22% p.a. |
Protium |
20.50% p.a. |
AYE Finance |
29.50% p.a. |
Disclaimer: The mentioned rates are subject to change at the lender’s discretion.
Indian citizenship
Age between 21 and 60 years
Minimum 1 year of business operation
Good credit score (650+)
Minimum turnover of ₹1.5 Lakhs by business annually (according to ITR)
Identity proof (Aadhaar and PAN)
Proof of business ownership (Declaration of Sole Proprietorship, GST registration, Certified copy of memorandum, Partnership deed)
Bank statements for the past 6 months
Financial statements (Balance sheet, profit & loss)
The application for a business loan on Bajaj Markets is a simple, fast, and entirely digital process. Have a look at the steps below to apply:
Step 1: Hit the ‘CHECK ELIGIBILITY’ button on this page
Step 2: Fill out the form with your personal and business details
Step 3: Choose a lender from the list provided
Step 4: Select your desired loan amount and repayment terms
Step 5: Submit your application form for processing
Starting a restaurant business in India requires careful planning, the right location, a solid team, and sufficient financing. Securing a business loan can provide you with the necessary capital to launch and grow your restaurant successfully. Whether you need funds for equipment, inventory, or marketing, Bajaj Markets gives you access to various loan options to suit your needs, making it easier to realise your restaurant business dream.
Several government initiatives are available to support small businesses in the food and hospitality sector. These schemes offer financial aid, easier access to credit, and opportunities for growth and expansion:
The PMEGP Scheme helps aspiring entrepreneurs establish new businesses by offering financial subsidies. Restaurant owners, especially in rural or semi-urban areas, can benefit from this support to cover initial setup costs and create employment in their communities.
Designed to assist small enterprises, funding of up to ₹10 Lakhs can be accessed based on the stage of the business. Whether you're starting a small eatery, expanding a food truck, or launching a cloud kitchen, the scheme offers three loan categories:
Shishu – for startups (up to ₹50,000)
Kishore – for growing businesses (₹50,000 to ₹5 Lakhs)
Tarun – for established businesses needing larger capital (₹5 Lakhs to ₹10 Lakhs)
These loans are collateral-free and come with flexible repayment options.
This scheme is aimed at empowering women and entrepreneurs from SC/ST communities. You can get funding between ₹10 Lakhs and ₹1 Crore to help launch new ventures, including restaurants and cafés, encouraging inclusivity in business.
For restaurant owners lacking collateral, this scheme enables easier access to loans by offering a credit guarantee to banks and financial institutions. It significantly reduces the barrier to entry for new businesses in the food sector.
Yes, the restaurant business can be highly profitable if you offer quality food, maintain excellent service, and market your restaurant well with a solid business plan.
The cost of starting a restaurant varies depending on the location, concept, and scale of operations. On average, you may need ₹10-50 Lakhs to start a restaurant. However, the investment can be higher in metropolitan areas or more upscale concepts.
Yes, you can hire professional business consultants or agencies to create a detailed business plan that will help secure required financing.
Yes, most lenders will require a well-structured business plan to assess the viability and profitability of your restaurant business before approving the loan.