How to start food business?

Friends, if you have decided to start food business or restaurant business this post will act as ready reference or guide for you. A food business is very good ever green business idea. In order to start your own food business, follow the steps given below.

food business

What you need to do to start food business?

Step -1

First decide that you want to start fast food business or proper restaurant with sitting arrangement. In addition to this you also need to decide that you will be taking franchisee or starting your own business. Once you decide this start planning for arranging capital.

Step -2

Decide how much money will be required for starting food business. Make budget which include working capital and one time investment. Few source of arranging money will be –

  • Loan from Bank
  • Fixed deposit
  • Other saving
  • Mutual funds
  • Gold

Don’t get optimistic while making this budget count every expense.


Carryout budget allocation for food business, budget allocation means dividing money in various categories like.

  • Fee of Franchisee
  • Rent of Shop
  • Interior of Shop
  • Kitchen related equipment
  • Salary of staff
  • Advertisement budget
  • Food Raw material Cost
  • Gas bill and Electricity utility bill
  • Working capital
  • Some Extra additional amount

Now divide this cost in fixed and variable cost. Fixed cost is cost that remains fixed through. E.g Rent of Shop, salary of staff etc.

Step -4 Now, It is time to set target date and start execution of tasks. These tasks are –

  • To find out appropriate location for restaurant
  • Decide name of shop
  • Deciding menu and price
  • Recruitment of staff and cook
  • Interior decoration of shop and furniture
  • Taking approval from Government
  • Planning about advertisement
  • Deciding place to purchase raw material and vegetable for cooking

Step-5 Inauguration of shop

Step-6  Planning roles of individual in the shop on daily basis. It is better to carryout mock drill before inauguration.

Important tips about starting and running food business

  • Food business is volume business. In order to increase the volume, It is extremely important to serve good and tasty food to customer. Remember every stratified customer bring other customer.
  • Cook is most important person in food business. Select your cook carefully.
  • For raw material you can finalize fix vendor. This will give you price advantage.
  • You should carryout cost control at every stage.
  • Never compromise on Food and raw material quality.

 All the best for new venture of food business! If you have any question about starting food business feel free to post it in the comment section.

Article by Shitanshu

Hi, I am Shitanshu. By Profession I am Engineer and working in the IT field. I am crazy about money matters and finance and love to research the same. I have written number of article on this blog. If you like my efforts kindly subscribe to this blog and also let your friends know about this website by sharing.

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  1. Salim Khan says:

    Thanks for your ideas.
    How much margins in restaurant business? Tell about me in details.

    • Shreya Kapadia says:

      Dear Salim Khan,

      Profit Margin depends on food item and volume.However,roughly you can get 15% margin.

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