Investment for various Food businesses

Posted by fshsfhsfh on Thursday, March 24, 2011


I received a query on the total investment one would need for setting up and operating a food business. Though the exact investment will depend on the concept and the location, the ranges given below should be useful for those ideating about setting up a restaurant. These are applicable in Bangalore. Please note that the figures below do not include a liquor/beer license - A liquor license currently costs around 50-60 lakhs and a draught beer only license will cost around 15-20 lakhs. I will write a separate post on liquor/beer licenses with specifics and the process involved. Also note that the figures include some working capital provisions that you will need (pre-operating expenses, initial cash flow requirements till you break-even etc.)

1) A Fine-Dining Premium Restaurant (80-120 seater) - 1.5 to 2.5 Crores e.g. Barbeque Nation.
2) A Casual Dining Restaurant (60-80 seater) - 60lakhs to 1 Crore. e.g. Rajdhani
3) A Budget restaurant (40-60 seater) - 40 lakhs to 60 lakhs. e.g. Mast Kalandar
4) A Coffee Shop (40-60 seater) - 40 lakhs to 60 lakhs. e.g. Coffee Day
5) A take-away joint/Stand and eat place - 15 lakhs to 25 lakhs. e.g. A small Darshini
6) A Cake shop/Ice-Cream Parlor - 15 lakhs to 20 lakhs. e.g. Corner House

Tip: If you manage the investment tightly you may be able to save reasonable amounts of money - but I would strongly advise having the above amounts available from a planning/budget perspective and then managing your costs really tightly.

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