Investing in the hotels and restaurants business can be a good choice if you are thinking about investing your money in any kind of business. This industry may grow at a high pace in the next financial year, 2024-2025. Some of the key cities where you can start this business includes Kolkata. If you are from Kolkata and thinking about starting a restaurant in this city you can do so without thinking more. This is a very good location for starting a restaurant. There are a lot of people living in this city who are from outside Kolkata for their work or any other thing and they miss good food, in that case if you provide good food to them through your restaurants chances of success of your business automatically increases. There is a proper process to open a restaurant in Kolkata, which we are going to discuss in this write-up, hence you must stay tuned till its last line.
Types of Restaurants Business Models In Kolkata
Here some of the key types of restaurants business models have been given, you can opt for that one which suits your business best. Choosing a business model is also part of the process to open a restaurant in Kolkata.
Management Agreement Restaurant Business
In this instance, the business owner and the management company that oversees the owner’s restaurant business engage into a management agreement. In this case, the management company oversees all business operations and collects management fees from the owner in exchange. This charge may take the form of cash or a portion of the company’s earnings. This is a viable option for opening a restaurant in India.
Franchise Agreement Restaurant Business
Here, one begins the business by signing a franchise contract with an established restaurant company. These are essentially franchises of an existing well-known and well-established brand. In this case, you obliquely assist the other party in growing their company. In this case, your company is operating under the name of someone else and expanding on that name alone. The real owner whose franchise you wish to open must get the payments from you in this case.
Owner Operated Restaurant Business
This is the restaurant industry’s best format. The real business owner is in complete control of the restaurant in this instance. Everything in this place is under the owner’s control, and the owner has made all of the major decisions. The owner will shoulder all costs, whether there are gains or losses.
Leased Restaurants Business
Land for the establishment is one of the most crucial requirements for beginning a restaurant business in India. You don’t need to worry if you don’t have much money and are having trouble purchasing land for the same use because you may launch a leased restaurant business. In this kind of restaurant operation, you leased the land for an extended length of time. You can launch your own company without owning any land by doing this.
Process to Open a Restaurant in Kolkata
Follow the steps given or discussed below or the process to open a restaurant in Kolkata:
Do Market Research
Doing market research is the very first step of the process to open a restaurant in Kolkata. To open a restaurant in India, thorough and in-depth market research is essential. This company sector is already very competitive, and if you enter a competition like this unprepared, you will undoubtedly fail. Therefore, you must conduct thorough market research on this before actually starting this firm.
Draft a Proper Investment Model
The first requirement for opening a restaurant in India is capital. A considerable investment is required for both small and large restaurants that you wish to open. Generally speaking, there are two kinds of investments: self-funded and investor-funded. Whichever one you like best is now up to you.
Do Swot Analysis
Before doing the same, it’s crucial to complete a SWOT analysis of the company. Swot analysis refers to in-depth research on topics such as the company’s rivals, potential clients in Turkey, and market trends. Your investment plan, possibilities, business’s limitations and strengths, and other factors can help you stand out in the business world.
Choose a Good Location
Many people, even business owners, choose their company’s location at random without conducting any research beforehand. This is a result of their belief that location is not very significant. While location may not be as important in other industries, it is crucial in the restaurant sector. Therefore, you need to be very attentive while selecting the business’s site. In India, choosing a suitable site for a restaurant is crucial.
Business Registration
Business registration is one of the key steps of the process to open a restaurant in Kolkata. Hence to give your business reliability and trust in the market among the various competitors you must obtain business registration. Business registration can be in different forms like Private Limited Company Registration, Public Limited Company, LLPs, OPCs, partnership firms, sole proprietorship firms etc.
Key Legal Requirements to Start a Restaurant Business in Kolkata
There are certain Legal licenses and registrations which are necessary part of the process to open a restaurant in Kolkata. Such license and registrations are given below:
- In India, a Ministry of Tourism No objection certificate, or NOC, is needed to open a hotel.
- According to local law, a building permit or premises are needed where the restaurant business is going to begin.
- The primary prerequisite for hotel businesses to ensure fire safety is a fire safety permit.
- Hotels occasionally host a variety of events; therefore, in order to participate in these, you must obtain a Public Performance License.
- The second crucial prerequisite for operating a hotel is an eating house license, which you as a business owner must secure.
- Operating a restaurant in India also requires having a police license and signage.
- It is necessary to obtain a trade license and a health safety license.
- In India, registering for an FSSAI license is a must for operating hotels.
- GST registration, if your company needs it
- Certification of shops and establishments in accordance with the shop statute of each state
- To benefit from a number of benefits, MSME registration should be secured.
- The company owner is required to secure both the environment clearance and a bar license.
Conclusion
The process to open a restaurant in Kolkata includes market research, choosing a proper entity, choosing a good and suitable business model etc. one of the crucial parts of the process to open a restaurant in Kolkata is to obtain all the legal licenses and registrations which are applicable on the restaurant business as per the law. If anybody is caught running a restaurant without these legal licenses and registrations, he or she may have to face heavy fines and penalties which are sufficient enough to collapse your business. Hence for the safety of your business you must comply with all the legal requirements of the restaurant business.
