Fast Food Restaurant

FAST FOOD RESTAURANT

Expansion of  fast food:-

Fast food represents the most rapidly growing sector of the food-service industry. While most of the system-based operations were developed in the United States many of the large corporations have expanded into other countries either directly or by joint investment, licensing or franchising arrangements. In addition, many national companies have set up their own fast-food operations using similar products or based on local foods.

In the United States there were over 103,000 fast-food units in 1984, representing 26.4 per cent of all commercial establishments and these
accounted for 30.7 per cent of all food and beverage sales In Europe, fast-food development has varied greatly from one country to another depending on chain initiatives and life style. The main penetration has been in Great Britain and West Germany which together accounted for over 70 per cent of the total fast-food market in 1984. Fast-food sales in Great Britain were estimated to amount to between £1,800 and £2,200 million in 1984, one third of the total market for meals
outside the home.

Features:-

Fast-food operations are designed around systems of catering which provide a limited range of highly standardised products. They rely more on high volume sales and tight control over costs and margins to provide competitive prices. The key requirements for fast-food systems may be summarised as follows:

Features & Requirements

Food materials:-

Consistent, controllable quality, Precisely specified, equally portioned

Type of products:-

Suitable for quick cooking and retention for short periods without deterioration

Organisation:-

 Highly organised routines with precise job specifications and procedures

Operation:-

 Usually planned for large through-put, high sales volume (including counter    sales)

Cost control:-

 Precise portion and cost control permitting relatively small margins and competitive pricing

Quality control:-

Standard preparation, cooking and serving routines laid down, including the discarding of sub-standard (e.g. maximum times for keeping food before serving).

Hygiene:-

Exacting requirements emphasis as part of product reliability, including measures to reduce litter (in store and neighbourhood)

Packaging:-

Products distinctively packaged(disposables), easy to handle (usually finger held), suitable for  over-the-counter or table meals

Research:-

Product research and consumer response testing essential. On-going research            into changing food preferences and attitudes is necessary to develop new concepts
Variety:-

 May be provided in product range offered or by variations in one basic product (dressings, fillings, supplements)

Markets:-

Usually targeted at wide, classless society, primarily young or family group

Promotion:-

Emphasis is given to value for money, consistent quality and cleanliness. Particular products may be differentiated by originality, size, cost             competitiveness, variety of choice or fillings, healthy eating, friendly service

Products

While many foods could be suitable for systems based production, fast-food chains usually concentrates on products with universal appeal such as hamburgers, chicken, pizza, ice-cream^. National products are also prominent - fish and chips in Great Britain, Mexican tacos (United States) or sushi (Japan) - and there has been growth in the popularity of ethnic food (Chinese^, Indian, Turkish, etc).

Alternative products are constantly being re-searched both in terms of market attraction and production needs. Many fast-food operators have extended their standard range to offer widervariety in choice and to meet changing demands^, for example:

·         hamburger, chicken and fish burger options,

·         salad bars, baked potato counters, health foods,

·         alternative menus (for breakfast, at weekends),

·          National variations (such as German worst, Italian pasta, Danish smbresbrod. French crois-santerie).

Decisions on the type of products are critical in deciding equipment to buy and operating requirements

Packaging provides a distinctive merchandising as well as functional role and a company's style appears in napkins, containers and packs. Containers for hot food may be of coated card or paper, laminates^, moulded plastics or aluminium foil. Tableware re-suitable for the oven has been developed for particular foods.

Location of premises

Prime high street location are generally necessary for the large company owned unit generating high volume counter sell competition for high street sites from other operations as well as from retail stores is often intense and both capital investment and rental charges are high.

The feasibility of city centre development depends on large volume sales with extended periods of use, typically over a fifteen hour day, seven days a week. Off-high street and urban traffic route locations are preferred by some chains to reduce rental charges and assist franchise investment and operation.

In the initial stages of development or expansion into a new region, units tend to be company owned in order to establish standards and marketing information. Investment may also be channelled first into selected areas such as capital cities, in order to concentrate media coverage and establish a suitable image. Site selection depends on the type and scale of operation but invariably the following criteria are relevant:

Criteria and examples

·         Market catchments- Population and socio economic structure of area. Local Attraction for shopping, work, leisure, tourism.

·         Pedestrians- Pavements flows of at least 500 persons per hour may be stipulated.

·         Vehicular traffic- Parking facilities, garages, shops, and activities in vicinity.

·         Sales forecasts- sales output vary widely, depending on location and types of product. Take-away sales are necessary to achieve high volumes.

     Location and Examples: sales/week

     Large high street units (with daily variations from 750-3000 sales) – 10-15,000/week.

    Large town centre  units- 5-8,000/week.

    Smaller unit- 1500-2000/week.

    The largest company owned units in prime locations may have sales of 30,000/week.

·         Sizes of units- Size of unit depend on the type of services and products.

·         Types of franchise unit and average sizes-

Large counter and table service- 325-465 ^m2  ( 3,500-5,000 ^ft2 ).

Small counter service units- 95-140^m2 ( 1,000-1,500^ft2).

Costs

Investment costs for fast-food units are usually high, for a number of reasons:

·         the design is part of an integrated product^, including detailed specifications of the style of decor, equipment and uniforms,

·          wear and tear and obsolescence are high,    giving relatively short life cycles (3-5 years).

·         Equipment is usually specified to meet high standards of sophistication with automatic timing and control, fast heat recovery and high performance requirements. Increasingly computer controls are incorporated both for production and accounting control.

Typical development costs (1984 prices) for large high street units (325 m2) ranged from £300,000 to £500, 000, with up to £200,000 being spent on equipment,

Although some of the largest company units involved expenditures up to
£740,000. The smaller units (95 m2) typically required capital investment of between

 £50,000 and £100,000.0) these figures exclude the costs of acquiring property.

Operational requirements

Most fast-food operators aim for a door time (entering to leaving) not exceeding 31/2 minutes with a maximum queuing time of 21/2 minutes, allowing 1 minute from placement of order to service.

Typical features

Entrance                           

Wide, conspicuous. Large stores May be open to a public   thorough fare or concourse during service periods (with 'air curtain' conditioning). Information clearly visible (photographs, signs, logos)

Counter                            

Set back from entrance with free Circulation/queuing area. Multi-point service provided in large stores. Information displayed over counter area, (angled).Counter normally 600 mm (24 in.) deep. Space for service: 600-750 mm (24-30 in.) width plus 600 mm (24 in.) for cash register.

Serving area

usually about 1,050 mm (42 in.) deep.

Production                      

Food holding units adjacent to server. Production area open to view. Equipment details specified.

Table seating                   

To one side of main circulation. May be on upper or lower floor level.

Dispensers   

For paper napkins, plastic cutlery, trays, condiments. Usually built into counter     with additional self-help points in restaurant area. Disposable collection points provided near circulation routes with self-closing lids.

Design

Clean, bright decor emphasised with practical consideration(durability, cleaning, function).The trend is towards natural wood, decorative ceramic tiling and
softening with texture (in panels, seating) using domestic substitute designs.

Equipment

One of the basic concepts of fast-food operations is to be able to us non-professional workers with minimum training. To facilitate this, equipment must be reliable, giving consistent and uniform cooking performance, rapid heat recovery with high output capacity and  automatic control with the minimum of attention. In the larger units conveyorised cooking equipment is often installed. For chain operations and franchising, equipment is usually manufactured to company specifications and suppliers may be nominated as part of the agreement. The type of equipment required will depend on the food products and output involved. The following summary outlines some of the main items used and current developments in equipment technology.

                      EQUIPMENT AND TYPICAL FEATURES

Service equipment

Counter dispensers –

                              

Normally include coffee system,milk shakes and carbonated drinks dispenser (with python lines from rear storage) ice dispenser and dispensers for paper cups,lids and napkins

Electronic cash registers

Micro-computer driven management information systems usually installed providing inventory control, sales mix analysis, sales per labour hour, etc.

Satellite transfer systems     

In chain operations, teleprocessing transfer of data to central computer (usually at night) for group analysis and feedback.

Closed circuit television, etc

For store security management control and information. Micro-phone ordering and recording also used

Cooking equipment

Fryers 

High heat recovery and precise  control necessary^. Usually micro-processor controlled with self monitoring programmes, automatic basket raising and lowering, automatic integral oil filtering.

Broilers

For grilling hamburgers^. In larger units, conveyor driven equipment
installed with speed and temperature adjustment. Conveyorised equipment is also used for toasting buns.

Pressurised fryers (boasters) 

For chicken, barbecued ribs^, fish fillets, beef specialities, etc. Provided with automatic temperature and pressure controls and safety devices.

Pressurised steamers

May be used for shellfish and other foods. Usually with free venting pressure option. Programmed temperature-time control and steam regulation essential.

Griddles

For shallow frying (hamburgers, onions, etc). Specifications require high output, uniform surface heat, sensitive thermostatic control,rapid response and non-stick surfaces.

Special ovens

For pizzas, etc. Similar requirements to allow intensive use with evenly distributed temperature control. Process controlled rotary ovens may be installed.

Soup kettles

Usually designed for heating and holding soup ready for service. Uniform and sensitive temperature control essential.

Microwave ovens

For quiches, pies and prepared composite foods. Back-bar sited
microwave ovens with automatic controls may be installed as a main or supplementary service.

Holding and merchandising equipment

French fry Dumps

Specifically designed with heated well, perforated scooping insert, Infra red lamps and associated storage. Automatic dispense units may also be used. Products are rejected after a set time limit.

Merchandisers

                                             

Combined holding and merchandising equipment which may be
heated or chilled, and provide a static or rotating (carousel) display.

Bains-marie

May be fitted in back counter equipment for sauces, vegetables,
stews, etc. Indirectly heated and thermostatically controlled.

Salad bars

Chilled displays of salads in specially designed trays fitted with transparent guards.

Storage and p reparation equipment

Food may be delivered ready portioned and frozen or chilled, or supplied fresh requiring preparation on site (for trimming, portioning, dressing or coating the food). Essential requirement include:

·         Deep freeze and refrigerated stores: usual
with separate compressor systems for noise reduction and heat recovery,

·         Deep sinks and drainers: for washing equipment and utensils. Specialised equipment may incorporate self-cleaning water lines,

·         Hand washing facilities: for staff, sited adjacent to staff toilets and to the preparation service areas.

Organisation

The job descriptions and titles traditionally used food services do not apply in fast-food services. Employees may be service-till operators, backer and crew with specific allocated duties. Employment is usually scheduled to enable shifts to overlap at peak periods (usually midday) and a high proportion of part-time staff may be used.

For a typical hamburger-style operation, equivalent full-time employees would be about thirty in a provincial town, up to fifty in a busy high street unit.

Feasibility

Projects may not be considered viable unless they are likely to achieve suitable operating ratios averaged over the first five years. Two examples are quoted:

Operating Ratios         % of total revenue                Notes

Turnover                           100     100 food &            beverage cost                    35        38                      Hamburger-38%, Pizza etc.- 35%

Gross Profit                       65       62
	Labour costs                      20        20,       Tightly controlled. Crew rostering essential Over Head cost                  5          9    ,    Energy,utility,disposable,cleaning,renewals Rents and rates                 12     10 ,Relatively high( prime sites) including      insurance Franchise Fees                    8       8,   Depends on agreement, group  advertisement
	Net Profits ( before tax, interest and depreciation )                                                                                         20      15             Typical range

                       Fine Dining Restaurant

     Planning

Name of the Restaurant

Size of the Restaurant

“A “ GRADE (80 - 120 COVERS) app. 2000 To 2500 Sq.Ft

Food Type

Location of the Restaurant

Objective of the Restaurant

To provide the customer with

·         Quality food at competitive price.

·         Quality and Quick Service.

·         Quality Dining Area.

·         Quality Waiting Facility and

·         Overall a Best and Enjoyable atmosphere.

Mission

The mission of this Restaurant is

Providing 100 % satisfaction to every customer - every visit. This includes Quality of Food, Fast Friendly and Attentive Service, Accuracy in Order Taking and Anticipating the Customers’ needs. Achieving economies to the scale of minimizing cost and maximizing value to the customers.

Our Team

The success of any organization always depends on the Knowledge, Experience and The Skills of the promoters. Working together as a Team would satisfy our common goal of, Providing Quality food and Service and hence the, Customer Satisfaction. Our Team would be made up of Dedicated and Experienced Staffs and Chefs who would work together to achieve our common goal of Customer Satisfaction.

Staff Requirements

a) Food Production

Chefs	2
Cooks	2
Assistants	3
Supervisor	1
Pot Washing	2
Dish washing	2
b) F&B Service
Manager	1
Captains	4
Waiters	8
Cashier	1
c) Miscellaneous
Purchase and Store keeper 2
House keeping	3
Accounts	2
Security	2
Total	______________
	35
	---------------------

Business Concepts

Ø  A new concept of restaurant in the city in an ideal location.

Ø  Proper Promotional activities at least for initial six months.

Ø  Special facilities: Membership card etc.

Ø  Special discounts during festive seasons.

Ø  Wide range of varieties in menu and quality food

Ø  Party Caterings (Outdoor).

Ø  Private Dining Facilities (PDF) for Corporate parties, etc

Ø  Vision to open new Outlets in future.

Investments

The following would be the initial non-returnable investment

		Description		Amount (INR)
	Civil, Plumbing and Electrical Works			xxxxxxx
	Kitchen Set up
	Equipments
	Exhaust
	Gas line			App.	800,000/-
	Coolers and Freezers
	Kitchen Utensils
	Store Set up
	Restaurant set up
	Interiors
	Furniture & Fixings
	Air Conditioning			App.	1,100,000/-
	Crockery & Cutlery

	Miscellaneous
	Accounting
	Billing systems
	License Fee
	Display boards					App.	400,000/-
	Uniforms for Staffs
	Traveling and Visa Charges
	Promotions during Launch
					App.	2,300,000 /-
			Total			+
					Cost of Civil, Plumbing &
					Electrical works (1)
			Note: The above estimate does not include Rental Deposit for
			the Restaurant and Staff Accommodation.(2)

Total Investment (App)

The total approximate Investment = 2,300,000+ (1) + (2)

Monthly Salaries

	Staff		Nos	Amount (INR)
	Production
	Chefs		2	40,000
	Cooks		2	20,000
	Assistants		3	15,000
	Supervisor		1	7,500
	Pot Washing		2	8,000
	Dish washing		2	7,000

	F&B Service
	Manager			1	17,500
	Captains			4	20,000
	Waiters			8	32,000
	Cashier			1	4,000
	Miscellaneous
				2
	Purchase and Store				8,000
	Keeper			3	10,500
	House keeping			2	12,000
				2
	Accounts				9,000
	Security
				Total	210,500/-

Monthly Fixed Overheads

Description	Amount (INR)
Restaurant Rent	140,000
Staff Acc. Rent	35,000
Staff Salary	210,500
Electricity Bill	60,000
Gas	35,000
Transport	10,000
Telephone Bill	6,000
Office Expenses	5,000
House Keeping	45,000
Miscellaneous	20,000
Total	566,500/-

Note: This amount 566,500/- (app) would be the working capital required every monthwhich excludes your cost of purchasing the supplies.

Financial Analysis

·                     Total no. of Covers- 100 Nos

·                     Average Exp. revenue per Cover- 220/- (INR)

·                     Avg. expected revenue per day (Lunch & Dinner)- 160 covers

Expected total sales per Day

·                     Expected total Monthly sales- 35,200/- INR (160 x 220)

·                     Total- 1,056,000 (INR)

Breakeven Analysis

Average Monthly sale- 1,056,000

Average Food Cost @ 46% on sales- 485,760 (-)

Gross Profit per month- 570,240

Average Overheads per Month- - 566,500 (-)

Net Profit per month- 3,740/-

Conclusion

The above projections are just an average figure to get almost a close to reality figure about what should be the minimum amount of business required to be done. The quality of food and service should be maintained without any compromise and frequent promotional activities will ensure long term success.

“It all comes back to the basic. Serve customers the best-tasting food at a good value in a comfortable restaurant, and they'll keep coming back.”

Licenses

Introduction

Before you open a restaurant, it is critical that you have all the necessary licenses in place. Due to the strict regulations being enforced by the government, and the consumers becoming more health conscious and picky about their choice of dining establishments, licenses have become a critical aspect of running a food business. You should apply for the different licenses well in advance, since the process of procuring these licenses could take up a long time. With the varied food businesses operating in India, restaurant licenses differ based on primarily the type of food and services you are offering, and the location.

List Of Licenses For Opening

Food Business

·         FSSAI Food Safety & Standards License

·         Health/Trade License

·         Eating House License

·         GST Registration

·         Fire Safety License

·         Lift Clearance

·         Music License

·         Signage License

Fine Dining

·         FSSAI Food Safety & Standards License

·         Health/Trade License

·         Eating House License

·         GST Registration

·         Liquor License

·         Fire Safety License

·         Lift Clearance

·         Music License

·         Signage License

·          

Food Truck

·         FSSAI Food Safety & Standards License

·         Health/Trade License

·         Eating House License

·         GST Registration

·         Fire Safety License

·         NOC From Regional Transport Office (RTO)

Restaurant Bar

·         FSSAI Food Safety & Standards License

·         Health/Trade License Eating

·         House License

·         GST Registration

·         Liquor License

·         Fire Safety License

·         Lift Clearance

·         Music License

·         Signage License

Food Truck

·         FSSAI Food Safety & Standards License

·         Health/Trade License Eating

·         House License

·         GST Registration

·         Fire Safety License

·         NOC From Regional Transport Office (RTO)

Casual Restaurant

·         FSSAI Food Safety & Standards License

·         Health/Trade License

·         Eating House License

·         GST Registration

·         Liquor License

·         Fire Safety License

·         Lift Clearance

·         Music License

·         Signage License

1. FSSAI Food Safety And Standards License(FSSAI License)

FSSAI License, also known as “Food License” is one of the most mandatory licenses you need to have when starting any restaurant. The Food Safety and Standards Authority of India (FSSAI) is the one responsible for providing the Food License. This license is not merely a license; it also serves as an approval by the authority and assures the patrons that the food of that particular restaurant affirms to the food safety standards of India. They provide a unique 14 digit registration number to the manufacturer, traders, and restaurants which should mandatorily be printed on the food packages.

DOCUMENTS REQUIRED TO APPLY FOR FSSAI LICENSE

·         Proof Of Expected Annual Turnover (Self-Attested)

·         List Of Directors With Full Address And Contact Details

·         Food Safety Management Plan Or Certification (If Any)

·         Declaration Form

·         Photo ID And Address Proof Issued By Government Authority

·         Analysis Report (Chemical And Bacteriological) Of The Water To Be Used For Cooking From A Recognized (ISI Approved) Laboratory

·         No Objection Certificate (NOC) From The Owner Or The Partner

·         Medical Certificates Of Employees

How To Get The FSSAI License

You can log in to the FSSAI website, complete the sign-up process by creating a username for the registration. Then sign in to your account and fill up the online application with all the required documents.  When applying for a new FSSAI license you will be charged a fee of INR 7,500. This fee has to be paid annually. Submit the printout of the filled up online application form to the Regional/ State Authority with all the supportive documents within 15 days from the date of making the online submission.

2. Health/Trade License

The 11th schedule of the Municipal Corporation Act (1957) is about Health Trade License. It came into existence from the concern that public health must be given the supreme importance. This license is generated by the local civil authorities like the State’s Municipal Corporation or the Health Department.

DOCUMENTS REQUIRED TO APPLY FOR HEALTH/TRADE LICENSE

·         Sanction and Completion (Includes Ownership Proof, rent Agreement or NOC from Landlord)

·         Three Copies Of The Site Plan And Layout

·         Indemnity Bond Of INR 100

·         Structural Stability Certification Signed By Structural Engineer

·         Power And Water Paid Bill

·         Sewer Connection Proof

·         Water Testing Reports

·         Plan Of The Premises

·         Medical Certificates Of The Employees

·         Proof Of Property Tax

·         Lal Dora Certificate, If Applicable

How To Get The Health/Trade License

You can apply for this license either at the CSB or online. The forms are available at the State’s Municipal Corporation website or Zonal Citizen’s Service Bureaus. 

The license is generally issued within 60 days of submitting the application form. It will cost you approximately INR 500 to INR 50,000, depending on your restaurant concept and size.

3. Eating House License

The Eating House License is issued to a place where different kinds of food and drinks are served for consumption of the general public. The Eating House License is provided by the Licensing Police Commissioner of that city where you would want to open the restaurant

DOCUMENTS REQUIRED TO APPLY FOR EATING HOUSE LICENSE

·         Documents to prove the legal occupancy of the place of Eating House and in the case of tenancy, NOC from the landlord

·         Site Plan containing details of the size of Eating House

·         Photographs of the place showing its usage as an Eating House

·          Photocopy of Valid NDMC/MCD/ DCB/Airport Authority of India trade license and free receipt

·         Residence proof of the applicant An affidavit on the stamp paper of Rs 10 duly attested by Notary Public.

·         Fire NOC, if the seating capacity of the eating house is 50 or more

·         Undertaken with regard to amusement activities

·         Undertaking regarding the installations of CCTV Cameras with 30 days recording facility

How To Get The Eating House License

The applicant will have to first register himself/herself on the specific website. After you are successfully registered, you will receive a User ID and Password for submission of forms. Using the user ID, you can fill up the form, upload all the necessary documents and fix an appointment. Self-attestation of all the documents you place is a must since it will ensure validation. The Eating House License will cost you INR 300 for three years.

4. GST Registration

GST that came into force since 1st of July, 2017, has kept everyone hitched to it with frequent changes. Registering in GST is one of the major things that your restaurants must do, that will ensure that your restaurant runs seamlessly.

DOCUMENTS REQUIRED TO APPLY FOR GST REGISTRATION

·         Allotment and possession letter from Authority / Transfer Memorandum.

·         Copy of Registered lease deed.

·         Copy of Pan Card of Proprietor/ Partnership Firm.

·         Copy of the Partnership Deed

·         Copy of Aadhar Card of Proprietor/ all partners

·         One passport size-photo of proprietor/all partner.

·          Mail ID and Mobile No. to receive OTP & Verification links of all partners

·         Latest Bank Statement containing Name, Address and IFSC Code of Branch of Bank.

·         List of Item to be traded ( if you want to sell stuff over the counter also)

·         List of Item to be traded/manufactured

·         Digital Signatures of authorized partners

·         Authority Letter in favour  of dealing partner

·          

How To Get GST Registration For Your Restaurant

Individual, Partnership firm or Registered Company can obtain the GST registration by filing necessary documents online. GST registration is absolutely free and can be easily applied for on the Government’s office GST website.

5. Liquor License

If you wish to serve alcohol or have a fully functioning bar area it is mandatory to obtain a Liquor License. Every state government in India has a different set of rules when it comes to obtaining the liquor license.

DOCUMENTS REQUIRED TO APPLY FOR LIQUOR LICENSE

·         An affidavit stating the details of the company/firm with sale figure all over India and Ex-distillery price(EDP)

·         Product declaration of the brands applied

·         ENA Certificate – neutral alcohol (double distilled) / Extra neutral alcohol

·         An Affidavit regarding the genuineness of foreign TMC

·         Copies of Excise Verification Certificate for sale verification

·         Sale Verification Report

·         Certificate of sale figure & EDP from Excise

·         Authority License copy of Distillery/Brewery/Bottling Plant from where the brand is being manufactured/bottled

Power of Attorney duly signed by

·         Authorized Director/MD/Appointment of Attorney by the applicant

·         Copy of Latest IT Return/ Copy of PAN Card/Copy of latest IT Assessment order/Copy of Income Tax Clearance Certificate

·          No Dues Certificate from Delhi Excise Department

·          No Dues Certificate from the VAT

·          Department CA Certificate regarding Sale & EDP of the brands

·          Chemical Analysis Report of the brand applied from the Govt. Authorized Lab./other reputed Pvt. Institution

·          Personal Bond with Surety of Rs 5 Lacks

How To Get Liquor License

You can procure the license from the local excise commissioner; this step has been simplified by the government because the application forms are now available online on the respective state government website. The cost of obtaining a liquor license can be a little expensive. You need to deposit an initial security deposit of Rs 10 lakh and Rs 5 lakh for the license, Rs 5 lakh for L2 license and Rs 2.5 lakh as qualifying fees. Other than that the registered company, liquor companies, and partner firms should have a bank deposit of Rs 25 lakh.

6. Fire Safety License

It is necessary to get the fire safety license as it will assure your customers that your restaurant is safe from the fire hazard. A No Objection Certificate (NOC) from the fire department is also required to run a restaurant.

How to Get NOC from the Fire Department

For this, a restaurant needs to register for NOC from the State Fire Department before the building construction starts. Applications can be found online on the state government website. After having all the safety equipment in place, you must invite the Chief Fire Officer for inspection and get the NOC. There is no fee required for NOC as of now.

7. Lift Clearance

In case you want to install a lift in your multi-story restaurant, you need to get clearance from an inspector from the electricity department as well as the Labour Commissioner of that specific city. The Electrical Inspector issues this license from the office of the Labour Commissioner after verifying installation of life, layout, safety gears and the like

The fee charged for the inspection is as follows:

·         Lift having a speed up to 1 mtr. per sec- INR 520 (each lift)

·         Lift having a speed up to 1.5 mtr. per sec- INR 770 ( each lift)

·         Lift having a speed more than 1.5 mtr. per sec- INR 1020 (each lift)

8. Music License

Playing music at restaurants is common, but, to play music at your restaurant, you need to obtain a restaurant music license. Under the Copyright Act of 1957, those who play pre-recorded music in any non-private, commercial or non- commercial establishments must obtain a music license issued by Phonographic Performance Limited (PPL). If a restaurant plays music and operates without the said license, they will have to face legal penalties. A Music License can cost you INR 3000 to INR 8000 depending on the size of the restaurant and the occupancy

9. Signage License

Marketing your restaurant for attracting more customers is imperative and this license will help you with that. If you want to market your restaurant either through word of mouth, logos, posters, pictures, and symbols, you are required to obtain a legal permit which is the signage license. You can obtain this license from local civil authorities like the Municipal corporations.

10. NOC From Regional Transport Office (RTO)

If you wish to open a food truck business you will require a No Objection Certificate (NOC). NOC is a legal document issued from the regional RTO for re-registration of a vehicle. If you want to market your restaurant either through word of mouth, logos, posters, pictures, and symbols, you are required to obtain a legal permit which is the signage license. You can obtain this license from local civil authorities like the Municipal corporations.An NOC is an essential document that certifies that there are no dues of tax on the vehicle. This NOC is issued by parent RTO certifying that there is no traffic challan, crime or dues is pending against the vehicle.

DOCUMENTS REQUIRED TO APPLY FOR THE NOC

·         Registration certificate (RC)

·         Insurance certificate

·         Permit and fitness certificate (applicable for commercial vehicles)

·         Emission test certificate (pollution under control certificate - PUC)

·         Consent of Financier on CMV form 28 (if the vehicle is covered by Hypothecation, HPA or a lease agreement

·         Pencil print of the chassis number for the CMV 28 form

·         Photo identity and address proof

How To Get NOC From The RTO

A payment of INR 100 is to be made in order to obtain a NOC. Once the application has been submitted, the RTO will obtain a report of the vehicle from the Police authority to check if the vehicle is involved in any criminal case or stolen. If there are no outstanding dues or DSA cases pending against the vehicle, a receipt of clearance is obtained and No Objection Certificate is issued. The RTO will take three business days to issue the NOC Certificate.MCD and Food License are the two most necessary licenses. Fire License is another essential license for the safety of the restaurant and the guest. All these licenses are significant for getting started and smooth management of a brand.

Restaurant Marketing

INTRODUCTION

Before we dive deep into how restaurant marketing helps in boosting your business you need to understand what restaurant marketing is.Marketing is an art of promoting your business to sell your good and services, and restaurant marketing is no different! Restaurant marketing includes market research and advertising for your restaurant’s progress. It is a process of getting consumers interested in your restaurant’s services. Marketing is crucial for fine tuning how a restaurant sells its specialties to the consumers for prolonged success.

IMPORTANCE OF INVESTING IN RESTAURANT MARKETING

Marketing is one of the expenses involved in running a restaurant successfully which several restaurant owners tend to avoid or not pay much attention to. As a restaurant owner, you need to understand the importance of investing in marketing for long-term benefits.

Running a restaurant business can be a daunting task, there are always unexpected bills to deal with, and this is where a good marketing strategy comes handy and helps you maintain a steady cash flow.

Without marketing, how are you going to bring in new customers? How will you retain old customers and make them more loyal to your brand? The income needs to come from somewhere and marketing helps you do that!

The restaurant industry is hungry for attention and marketing helps you get that recognition. It is essential to let people know about your restaurant’s existence and nothing does that better than marketing! If people are not thinking about your restaurant, it is up to you to let them know or remind them of your existence. Restaurant marketing is a great way to stop people from doing what they are doing and focus on what you have to offer. It will enable you to make a powerful impression and grab a lot of attention of the new as well as old customers. It will create a strong pipeline of customers to give you a sustainable business.

Here are some reasons why it is important to invest in restaurant marketing:

HELPS BUILD CREDIBILITY

Brand credibility is often pointed out by marketing experts as one psychological factor that could trigger the buying impulse of consumers.

As a business owner, you must try to change your perspective into that of the consumers. People often like to visit restaurants they know and trust, for example, McDonald's. Your restaurant’s credibility gives you an advantage over your comp-etitors. The marketing strategy you deploy helps build your restaurant’s reputation.

ENGAGING WITH EXISTING CUSTOMERS

Many restaurant owners tend to give less importance to their loyal customers and are more keen on attracting new ones. This is a practice that restaurateurs shouldn't indulge in. Your repeat customers are likely to spend more when dining at your restaurant also, they help spread a word about your restaurant. Through marketing, you can engage the existing customers and lure them to come dine with you often.

ATTRACT CUSTOMERS

Restaurant business is a people’s business! No matter how skilled your chefs are or how top-notch your restaurant’s service is, without customer’s it is all a waste. Marketing helps in engaging customers by making them aware of your restaurant. It is essential to have people interact with your brand as this will help you yield more profits and encourage them to dine at your restaurant.

TYPES OF RESTAURANT MARKETING

Very often the success or the failure of a restaurant is a result of an effective or a not so effective marketing strategy; therefore you need to select the correct marketing plan that suits your restaurant’s need. There are several factors you can take into consideration when deciding upon a marketing strategy.

FITS IN YOUR BUDGET

No matter how appealing a marketing strategy might look, if it does not fit your budget there is no point in splurging money on it, as you might end up spending more than what is required.

CONNECTING TO A TYPE OF MARKETING STRATEGY

Once you know your customer base you have to choose a marketing strategy that you think will have the greatest positive impact

DECIDING THE AUDIENCE

It is essential to understand your customer base before you start mapping out a marketing plan. You need to decide whether you wish to cater to students, families, etc. If you know your customers it would make it easier for you to plan accordingly and cater to your desired audience.

Restaurant Marketing plan can be broadly divided into two categories, namely:

These are the two broad categorizations of marketing strategies available to choose  from. We have shed some light on these two restaurant marketing mediums which will surely help you decide which marketing plan would be best suited for your restaurant business.

OFFLINE MARKETING

Offline marketing is the oldest known form of marketing. It is still being used by several restaurant owners in order to promote their business. It uses offline media channels like a newspaper, magazines, pamphlets, etc. to spread awareness about their restaurant and is very efficient if you wish to market to the mass as well as the local customers.

Are you launching a new menu item or opening up a new outlet? Whatever the situation be you need to stay focused and plan out a good restaurant marketing strategy.

OFFLINE MARKETING STRATEGIES

1. Word –of mouth marketing

2. Print media marketing

3. Print Advertising

4. Advertising on the television or radio

5. Marketing through SMS

1. Word –of mouth marketing

Word-of-mouth marketing can never go out of style; it is an effective way of reaching out to people and it’s free! This is the form of marketing that relies on casual social interactions. This marketing strategy has been in place even before the advent of the internet and is widely known as the most effective form of marketing. The success rate of word-of-mouth marketing is great because a person is more likely to believe in a recommendation coming from a person he or she knows instead of a canned source like print ads. The best way of getting people talking about you is by providing them the best food and top notch service. Exceed your guest's expectations and provide them with some insider information about the food that you are serving. Although, restaurant owners do not have much control over this type of marketing but, you can deliver the best restaurant experience to your guests and that would encourage them to talk about you

2. PRINT MEDIA MARKETING

It is a well-known form of marketing and the most widely used as well. Print mediums offer a brand experience to your customers which cannot be replicated online also they are very engaging.

NEWSPAPER

You can advertise on a local, regional or a national newspaper. It all depends on your budget and the audience you wish to target. If you have just started your restaurant business, we will suggest you place your advertisement in a local newspaper. This would help attract the local crowd to your restaurant as the chances of them visiting your restaurant are more. You can buy different ad space and also, choose from the type of ad (only text, picture ad, classified, etc.) you wish to publish.

MAGAZINE

Magazines are an excellent source for advertisement; they are eye-catchy and give the freedom to advertise your restaurant in an exquisite manner with pictures and attractive fonts. Magazines are content specific and a good way of reaching out to your desired customers. You can select a magazine which primarily talks about the food and beverage industry. This would help you reach the right audience. Similarly like newspapers, you get an option of placing your ad in a magazine that publishes weekly, monthly or quarterly.

3. PRINT ADVERTISING

Print advertisements maximize sensory appeal, the smell of freshly printed pamphlets to the vibrant colours  of  a billboard can turn a casual browser to a customer. Print advertisements are often enticing and vivid. Anything written in the print media to grab the attention of the specific target audience comes under the purview of print advertising.

BILLBOARDS AND POSTERS

The cost of the advertisement depends on the number of taxis or buses used to advertise, if the vehicle is fully covered and if the vehicle transits between a busy route.This form of advertisement is the most loved because they help you reach a significant number of people as the vehicle is mobile and keeps roaming around in the entire city An attractive billboard or a poster can help entice more customers. They work best when placed on a busy street or locality as it enables you to reach out to the customers on the move.Advertising through billboards and posters can be a little expensive depending on where you wish to promote your ad.If placed strategically they will surely help you reach out to more customers as placement is a primary key to ensuring the success of the advertisement.

PAMPHLETS

Advertising through pamphlets is very common all over. You can hand out the brochures to the people directly, or you can team up with a newspaper company to distribute the pamphlets for you.  Before you start distributing pamphlets make sure to get the necessary permits required to distribute advertisement pamphlets in your country.

TAXI AND BUS ADVERTISEMENT

Taxi and bus advertisements are prevalent forms of restaurant marketing used all over the world.

4. Advertising on the Television or Radio

Advertising through television or the radio is also an effective way of reaching out to your customers. You can promote your restaurant on a local or a national scale, depending on your requirements. If you have recently started a restaurant business you can advertise on a local television or radio network this would help attract customers from nearby locations. Almost every household has a television or a radio; therefore, it is an excellent way of advertisement to reach out to more people, as you are serving the ad for everyone, which helps in increasing your reach and expands the customer base. When advertising through an offline medium, you should take care of the placement of your ad. Correct placement can help boom your business and make people notice your advertisement, the display or the text that you use for the advertisement should be eye catchy.

5. MARKETING THROUGH SMS

Discount coupons delivered via SMS have redemption rates 10 times higher than those of printed coupons. Just like email marketing, SMS marketing is also a good way of promoting your restaurant. It has been around for some time now. SMS marketing has high visibility and opening rate. It is the best way to reach out to your customers in real time as this kind of advertisement is usually used to communicate time sensitive offers. You can send out SMS regarding new offers or deals at your restaurant. People now are more attached to their phones than ever hence, the chances of them interacting with the SMS you send out automatically increases. You can also add links to your social media platforms or website in the text. Although, sending out SMS to promote your restaurant might sound appealing to you but, you have to have consent from your customer’s first. You can take feedbacks from them and ask them to provide their number along with the feedback, this would mean that people are interested in receiving promotional messages also, make sure that you do not send out SMS during odd times like, late at night.

ONLINE MARKETING

After spending a huge amount in setting up your restaurant, you need a well-planned restaurant promotion idea to make your restaurant known amongst your competitors. Newspapers, bill-boards etc do help you reach out to many people but, the question here is, do they reach out to the “correct” people? Online Marketing would help you reach the right audience effectively and would help you stand out amongst thousands of other restaurants.If offline marketing is not your cup of tea and you are looking for alternatives, online marketing is the way to go! With all the information available online you will hardly see anyone flipping through a phone book looking for a restaurant’s number; therefore, promoting your restaurant online makes more sense. People read about a restaurant online, check through the reviews, order food online hence, having an online presence is essential for any restaurant business. Engaging in online promotions makes your restaurant visible.

Some of the best online marketing mediums you can use for effectively marketing your brand are:

ONLINE MARKETING MEDIUMS

Video Marketing

Collaborating With Social Media Influencers

Marketing Through E-mail

Building A Website

Paid Google Ads

Social Media Advertisement

Organic Google Listing

Marketing Through Restaurant Listing Sites

1. BUILDING A WEBSITE

Even before you start promoting your business online, you need an interactive website where people can read about you and your services. Having a site is very important as your website would act as the landing page for your advertisement. The website should be responsive and mobile friendly as people find it easier to look up for information on their cell phones.

Some of the points to keep in mind while creating a website are:

·         Your website should be easy to navigate.

·         Website loading time should be low.

·         Should have adequate information.

·         The website should be compatible with all the devices like Windows, IOS, cell phones etc.

You can use third-party websites like Wix, Word press, etc. that allow you to design websites easily or you can hire a website designer and get the job done. You can also post the menu online and provide the facility of ordering food through your website. If the process of ordering food is made simple for the people, they are more likely to place an order then and there, and increase the overall sales of the restaurant. When advertising through an offline medium, you should take care of the placement of your ad. Correct placement can help boom your business and make people notice your advertisement, the display or the text that you use for the advertisement should be eye catchy. Having a call to action .Having a call to action button like, “Order Now” or “Book a Table” on your website will increase the business by 12%.

2. ORGANIC GOOGLE LISTING

Google is one of the most popular search engines in the world, promoting your restaurant on Google would only help boost your business. Google provides you with different services to help promote your business like Google Ads, Google My Business and organic searches. Organic listing Organic listings are the web listings that closely match the user’s search query. One cannot pay to show higher on the organic listing. To show up on Google’s organic searches, your website needs to have a good quality score i.e. if the content is relevant to the search query, how original the content on the site is, etc. Google itself decides organic listings and showing up here is subjective to what the customer is looking for. These listing only include web pages that Google has crawled and deemed valuable for the search term. Promoting your business on Google is a great idea as this would help you reach out to more customers globally as well as locally.

Ø  72% Of Google Ads marketers plan to increase their PPC budgets due to high ROI

Ø  86% Of consumers use Google to find a local restaurant business

Ø  98% Of searcher choose a business that is ranking on the first page of Google

Ø  Google My Business Another way of showing up on organic searches is by creating a Google My Business profile for your restaurant. Google My Business is a free service that lets you list your restaurant business and show them to people searching for you locally. It shows the address of your restaurants along with the map. This is a good way of reaching out to local customers.

Ø  75 % Of people have said they often choose a restaurant to dine at, based on Google searches.

3. PAID GOOGLE ADS

With billions of searches per day on Google, you can use Google ads to make sure your potential customers notice your restaurant brand. This service allows you to run paid ads on Google or partner sites. For creating a Google ad, it is mandatory to have a website or a brand page where the person would be directed when he/she clicks on the ad. Google Ads gives you the freedom to decide the budget and the keywords for which you would like to show your ads for and also select a goal, like driving traffic to your website or increasing sales or leads. Selecting a goal will help Google show your ads to appropriate people who are more likely to meet your goal. The ads created through Google Ads normally appear at the top of the Search Result Page or on the side. This makes them look like organic search. These ads work on a PPC model i.e. you are charged only when someone clicks on your ad. It is one of the most effective ways of showing up on Google’s top search results.

4. SOCIAL MEDIA ADVERTISEMENT

Audience and the money you are utilizing for advertisement is not wasted as your ads are shown only to the people you have targeted. With millions of people using social media, you cannot ignore the fact that it is one of the fastest and the easiest way of reaching out to your potential customers. You have the complete control over the budget you wish to spend on advertising on the social media platform and the people you wish to target on the basis of their interests. This would ensure that your advertisement is reaching the correct If you are not advertising on social media sites like Facebook, Twitter, Instagram, etc. You are missing out on an opportunity to increase your sales! Social media is an excellent platform for building brand awareness. It allows you to share content that lets your customers know about an upcoming event, offers or special.

BEST SOCIAL MEDIA MARKETING TIPS:

If you are ready to promote your restaurant on social media these tips would help you plan out a good marketing campaign.

·         CONTENT PLANNING:

It is essential to decide the kind of content you wish to post online. You can post engaging content like a recipe for preparing one of the mock tails you serve. Exciting content keeps people coming back to your social media and also to your restaurant.

·         REGULARITY:

It is very essential to update your social media profile regularly. This would ensure that people keep seeing your restaurant on their feeds. If you are irregular with your posts, your customers might forget about you. Your aim is to be noticed and regularity helps you achieve that.

·         ORIGINALITY:

Being original is imperative. The posts that you share online should be freshly curated. People like originality and appreciate something different. Posting original content is a good way of engaging more people.

·         TRACKING YOUR SUCCESS:

 Posting on social media is not enough, you need to track and analyze if social media mark-eting is working good for you or not. This helps you understand if you need to invest more time on your social media account for engaging more people.

5. MARKETING THROUGH EMAIL

Email marketing is the oldest form of online restaurant promotion strategy. It is known to be one of the most effective ways of marketing. The 1st and the most crucial step of email marketing is building your customer's email database. This can  be done by taking feedbacks from your customers and asking them to provide you with their email address. An easy way of taking feedbacks and building your database is by using a feedback app that would help cut down the manual work. The email should be attractive, have images and appealing content. You can also add a call to action button along with your email text if required, a call to action button helps your customers interact with your email. You can use CRM (central customer management) software to keep your customers updated through email. These software help schedule your emails and customize them and make it customer specific. This is a perfect way of reaching out to people who have previously interacted with your restaurant and to keep them coming back.

6. MARKETING THROUGH RESTAURANT LISTING SITES

Restaurant review sites like Zomato, Uber Eats etc. let you advertise your restaurant business on their website /app. You can make use of these platforms not only to list your restaurant but also to help boost your visibility on the collections in which your restaurant is already featured.

Some of the reasons why you should consider advertising on restaurant listing sites are:

Improve Your Discoverability

By advertising on these websites /apps you will see an increase in the average footfall and drive more revenue by boosting the visibility of your restaurant.

Target Local Audience

 It uses location-based information (GPS), to show in-line ads targeted at users in a certain geographical area. This helps you in reaching out to the people nearby your restaurant’s location, who are more likely to visit your restaurant.

Track Your Performance

Advertising on these websites is not enough, you need to track the ROI. These websites/apps give access to comprehensive analytics tools to track the response to your campaign.With patrons becoming more conscious and more difficult to please, restaurateurs have to go the extra mile to be heard and have to make sure their ad strikes a chord. This is now being done by providing relevant information to their customers.

7. VIDEO MARKETING

Promoting your restaurant through video marketing might sound a little strange but, it is one of the best platforms to interact with your customers. You can post videos of an event at your restaurant on YouTube or other social media platforms, this would help in giving some insights to the people who are looking forward to arranging an event at your restaurant, they can see for themselves what the restaurant looks like during an event. You can also start posting interviews with your staff, Customers, critics, etc. Collaborating with famous You Tubers and asking them to visit your restaurant and make a video about it is also a good way of engaging the customers.Keep posting interesting short videos about the daily problems of running a restaurant this would help people understand how much effort you are putting in to make your space look good and food the best! In India, the online marketing industry is estimated to grow by annually. 25-40%.

8. COLLABORATING WITH SOCIAL MEDIA INFLUENCERS

Seeking help from social media influencers is an excellent way of reaching out to potential customers. You can collaborate with social media influencers and pay them to talk about your restaurant. Through this kind of marketing, you can choose a “spokes-person” to post about your restaurant on their social media profiles. You need to keep in mind the person you are selecting to talk about your brand should be famous and have a charismatic personality since the objective of this kind of marketing is to take advantage of their ability to influence others decision. Using influencers for promoting your restaurant is very helpful since people are more likely to visit a place that a  person they love or admire recommends. To choose the right influencer, you will have to explore various profiles yourself and select the one you think is best suited for your restaurant business. You need to define your objective to the influencer. This would help them post a picture that is in alignment with the goal of your restaurant. Selecting the right influencer to promote your business is a good way of reaching out to people with similar interests. Online restaurant promotion is not about how much money you can spend rather how creative you are. A robust online presence ensures more inter-action with your brand. Online advertisements are the best way of reaching out to the desired customers because you have the freedom to target the desired audience which increases the chances of people visiting your restaurant. Online marketing is a reliable and efficient tool to lure in more customers if used wisely.

BUDGET ALLOCATION FOR SOCIAL MEDIA MARKETING

·         30% Percent share of marketing budget spent by Cafe’s

·         20% Percent share of marketing budget spent by QSR

·         9% percent share of marketing budget spent by Casual Dining

·         43%  percent share of marketing budget spent by Fine Dining

Conclusion

If you are serious about running your restaurant successfully you need to plan out a good marketing strategy that would help your restaurant grow. It is very important for the prolonged success of the restaurant. It might be intimidating at 1st to map out a marketing plan but it is very manageable and can be inspiring to put together. It is vital to visualize your goals, identify your limitations and capitalize to achieve the best marketing plan. Growing your restaurant business is a nurturing process that responds to the efforts put on the inside. Marketing helps in making your brand familiar as your brands consists of your concept, mission statement and service standards. Always remember, the restaurant business is a service business, it is not all about the food; therefore it is essential to give your potential customers a taste of it through marketing. Marketing is essential but, avoid giving away the restaurant’s aura just to attract a few customers. Do not blindly follow what your competitors are doing, come up with your own marketing plan that is in accordance with your restaurant’s theme. Marketing is a reliable and efficient tool to lure in more customers if used wisely.