A strong academic background is a pre-requisite if you do not want to be taken for a ride by employees and other parties. A three-year degree course from a reputed catering college is essential.
Draft a business plan
You should draft a detailed plan that includes the market scenario, competition, target audience, marketing plan, operation plan, location, design, menu, competitor analysis, risk factors and critical success factors. This is essential if you want funds.
Finance your venture
Unless you are going to be self-funded, you must be careful about the size of the stake you offer to investors. Sweat equity, i.e. the equity that is created in a company as a direct result of the owner(s) hard work, is generally split 60:40 between the owner and the investor. For small outlets, you need at least Rs 25 lakh and if it's a sit-down restaurant, be prepared to invest at least Rs 50 lakh to Rs 70 lakh.
Find a place
The location of a restaurant will play a major role in its success. It is advisable to rent property rather than spend valuable funds buying it. The cost of your rentals plays a critical role in the financial success of a restaurant. So don't shy away from negotiating.
There are plenty of sourcing agencies available. However, don't poach experienced managers from restaurants because as a new entrepreneur, you risk becoming too dependent on him or her. Have regular training programmes for the service team.
Plan your marketing
In this industry, thirteen per cent of the first year's projected turnover is usually used for launches and marketing. Young entrepreneurs cannot usually afford to advertise so get food critics involved in the launches.
Running the business
Operating a restaurant is about serving food and taking care of customers, but it is also about running a business. Before expanding, go through the grind for two to three years and understand the functions.