How to Start a Quick Service Restaurant (QSR), in Just Rs 5 Lakhs

Quick Service Restaurants are also known as Fast-food Restaurants. They serve fast food like Pizza Hut, Dominos, KFC, and Starbucks. This is the most profitable restaurant format and has become the most preferred choice for restaurateurs. Because of the high return on investment, the QSR or take-out restaurant format is the most practical. It is possible to charge casual dining prices but not incur the same space, furniture, and pottery. However, to make the venture viable, you will still need to order 100-150 items.

Steps To Open A Quick Service Restaurant In India

These steps will allow you to open a fast-food restaurant in India.

  • Select the right location for the quick-service restaurant
  • All the necessary licenses are required to legalize your QSR
  • Place your order for the right number of staff
  • Arrange for the necessary kitchen equipment and raw materials
  • Your QSR should be well-marketed
  • You can smoothen your operation by installing a POS system or billing software
  • Choose the uniform for your staff
  • All other miscellaneous work can be done

You might be interested in the steps and details of opening a restaurant in India if you’re planning to embark on this dream project. Don’t you worry! We’ll dive deeper to give you all the information you need to make your execution look effortless.

How to Choose the Location of the Quick Service restaurant’s success or failure will depend on its location. The ideal location for a take-out restaurant is in densely populated areas. This will ensure that the target audience is always in mind. Customers will also be attracted to the restaurant if they are easily accessible and visible in the vicinity. For QSRs or Take-Aways, ground floor shops are preferable.

The store shop must be at least 450 square feet to build a great kitchen. The serving area and counter should not exceed 100 square feet. Rent should not exceed Rs 40 to 45k for 450 square feet. The landlord receives two-month rent and a one-month rent in advance from the five lakh investment.

Also, ensure that there is adequate water supply and drainage. Also, you must obtain a No Objection Certificate from the owner stating that he is open to subletting his space for a food-related business. You will need the NOC to obtain the Local Municipal License and Food License.

License Required for Opening a Quick Service Restaurant

Five licenses are required for a QSR or take-out restaurant: Food License from FSSAI; GST registration; Local Municipal Corporation Health License; Police Eating House License and fire license. A food license, GST registration and Local Municipal Corporation Health License will be required to open a take-out restaurant. However, it is recommended that you have all permits in place before opening the restaurant to avoid any legalities or small problems.

Each license must be applied separately. You can apply for a Food License through the website www.fssai.gov.in. You can also apply through agencies, which charge Rs 5,000 for all paperwork and a license fee. You can get help from any Charted Accountant for GST registration. The last step is to contact your local health inspector for the Municipal Corporation Health License. They will help you with the application process. The fee for the license is minimal and will be around Rs. 3,000. Once you have a Municipal Corporation’s Health License, you can apply for a Police Eating House and Fire license. This can be done within the first two to three months of operations.

Here is a list of Indian licenses required to open a restaurant.

Required Staff to Run A Quick Service Restaurant

A great team behind the counter and in the kitchen is the key to success at a quick-service restaurant. Your Chef is the most important member of your team. They create the menu and guide and lead the other kitchen staff. The restaurant industry is a high-stress business, particularly for junior staff. Here are some tips to help you hire the right staff for your restaurant.

A minimum of 5-6 people must work in a take-out kitchen. Two chefs must be available to work in the kitchen. Their experience will determine the salary. Based on their work, the average chef salary at Commis Level 1 is Rs 14000 to Rs 15000. The salary for other staff and helpers ranges between Rs 6000 and Rs 8000. Two delivery men and one counter man are needed for each order. Learn how to create a Human Resources Structure for your restaurant.

In today’s tech-time, you have some third-party delivery companies with whom to tie up for work on a per-order basis. They charge around Rs 30 for the first five kilometers and Rs 10 for each additional km. As a backup, it is highly recommended that you have at least one delivery boy, both full-time or part-time. These third parties can help you to save money on delivery.

You will need kitchen equipment and raw material for a QSR.

Restaurants spend a lot on kitchen equipment. A four-square foot table that can be used as a working table costs around Rs 6 to 7k. You don’t always need to buy new kitchen equipment. Although working tables, fridges, shelves, and cupboards can all be reused, gas pipes, Tandoors, burners, and Tandoors must be brand new to avoid potential gas leakages and additional costs. Apart from the kitchen, as mentioned earlier, equipment, mixers, fry-pans and cutting boards should all be new.

The kitchen was set up at the cost of Rs 2,30,000. Finally, the cost of raw materials like groceries, packaging, and poultry for the first five days, depending on the sales you make within the first five days, will be Rs 20,000.

Marketing of the Quick Service Restaurant

Pamphlets are a tried-and-true method of marketing that is also the most affordable. Logo designing and menu design are also important. These should not exceed Rs 2000. You can market your restaurant with 30k pamphlets for the first two months. You can get 30k pamphlets in the good quality paper for Rs 25,000. You can alter the quantity and quality of pamphlets to suit your budget. Learn how flyers and pamphlets can increase your restaurant’s sales.

To attract a large audience, you should also invest in a billboard. A billboard can cost around Rs 10,000. An online advertisement on Social Media or Google Adwords is also possible. Your restaurants could be used to promote your restaurant.

Learn how to do the right digital advertising for your QSR Restaurant.

QSR requires POS and billing software

The most important and integral component of any restaurant’s success and management is its POS. A niche POS should be tailored to the needs of Quick Service Restaurants. This guide will help you choose the right POS for your restaurant.

POSist is the one we recommend. It is completely browser-based and hardware-independent. You can use any web-enabled device, such as a laptop, tablet, or mobile phone, to generate bills. This should not cost more than 25000.

QSR Employees: Uniform for Staff

It is easy to overlook the importance of uniforms for restaurant owners. Everyone on the staff must be clean, neat and well-dressed. There are many options for dresses, including chef coats, smart shirts, t-shirts and an apron. It’s a good idea to purchase a uniform at the beginning of your business. They can be bought individually or in bulk for Rs 150. You can budget between Rs 6000 and 7000 to buy uniforms for your staff. This will give your restaurant a professional look.

Counter Design of the QSR

With the help of a carpenter, it is best to source the raw materials and create your counter according to your needs. A good standee or menu board at the front end will give your restaurant a professional feel. It is likely that the counter and front-end cost between Rs 20-25k, depending on its design. This article will show you how branding can be done for your restaurant.

You will also need to open a fast-food restaurant.

Takeaway and Home Delivery outlets require at least one mobile phone and a landline. A Cloud Telephony subscription can forward the call to another number if the first number is busy. The call can also be recorded for training purposes. You shouldn’t pay more than 10k.

Further, you will need to spend approximately Rs 8000 on plumber and electricity fitting. You will also need a calculator, fire extinguisher, daily accounts books, attendance register, and a Fire-extinguisher. You could also use your restaurant POS for a call center panel to take your calls.

India’s quick-service restaurant market is growing rapidly. Although the investment required to start a quick-service restaurant is low compared to other types, it can be a great way for you to reap the rewards. Follow these steps, and you will see your dream quick-service restaurant blossom!

 

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