Overview of Business:
You might be familiar with the term called “Fast Food Restaurant”; which is also known as Quick Service Restaurant. These restaurant works to serve specific kind of fast foods cuisines like Pizza, Burger and foods that can be prepared minimal interval period. There are some of the food chains you might know across India which are namely KFC, Dominos, Starbucks and Pizza Hut etc.
You can consider it as a lucrative restaurant structure among all and also this structure has become one of the popular choices of food businessman. The QSR structured restaurant seems to be returned on investment which is why it famous among restaurateurs. You can set the charges of one dining menu regardless price of crockery, air conditioner etc. Apart from these things, you should manage to get 100-150 orders for a day to make in the long run.
As you stepping up to open a Quick Service Restaurant, then you need to remember all these points which are the primary key. Your food needs to be
- a) Easy procedure to make
- b) Delicious in taste
- c) It takes quick serving time
- d) It’s ready to take away anytime
Entering in this field seems to be so easy, but there’s no business running out of the problem.
Steps How to Open Quick Service Restaurant/Fast Food Restaurant:
While you are moving into this sector, make sure you follow these steps which will help you to open a fast-food restaurant in India.
- Step 1- Choose a concept or a theme.
- Step 2- Use your spy eyes to scan the area which will be suitable for this business.
- Step 3- Create a menu card.
- Step 4- Prepare and get done with all the licence required, which will ultimately make your QSR legal.
- Step 5- Count on the number staffs that are required to help you out in business.
- Step 6- Arrange all the kitchen equipment that is required and other raw materials as well.
- Step 7- Make sure to advertise your QSR well.
- Step 8- Now the time is to install a POS or any billing software that will make your operation easy and quick.
- Step 9- Choose the suitable staff uniform.
- Step 10- Some of the other things that seem minor, get those done as well.
- Step 11- An opening that set the staff up
As you are going to dive into your dream business, you may also be craving to get in-depth knowledge about each tiny steps. You got no worries because we are here to help you out.
Step 1- Choose a Concept or a Theme:
When you are going to open a fast-food restaurant, then you should be clear about the concept or any theme. Idea or theme plays a vital role in building up synchronicity with the environment. It also helps to create a memorable and meaningful experience for the guests visiting your restaurant. Choosing one of the unique theme or concept also makes you stand out of sheep’s head.
Recommended Layout is:
- 45% SPACE = Dining area
- 40-50% of customers arrive in pairs
- 30% come alone
- 20% come in groups of four or more
- 35% space = kitchen and prep area, storage
- 20% space = office for management
Customer Service Can be in 2 Ways:
SELF SERVICE; A LA CARTE
*Try to avoid TABLE D’HOTE
Step 2- Use Your Spy Eyes to Scan The Area Which Will be Suitable For QSR Business:
Your restaurant location is one factor which affects your success or failure. The area that you choose to build up the restaurant should have a large population, and at the same time, you need to focus on targeted guests as well. Make sure that this area is easy to access and visible to everyone quickly. So this should be helping you with attracting more guests. It is recommended for you to choose the ground floor shops which are at the front.
Most Suitable places for Quick Service Restaurant or Fast Food Restaurants must be that particular place which should have maximum footfall. Such as;
- Near the railway station, bus stand, Airports
- Near colleges/Institutions
- Niche Market
Target Audience will be;
- OFFICE GOING YOUTH
Market Analysis in 3 Critical Aspects:
- TARGET AUDIENCE INCOME LEVEL
Step 3- Create The Menu Card:
After that, you have decided the locality of your restaurant then you have procedures for the menu card which is ultimately going to attract the customers to your restaurant. Just pick some essential dishes which you will be serving then update it from time to time. As you move ahead with building up of your restaurant, you will get to know about what your guests are liking and what they dislike so keep updating the menu to maintain the profit part.
Make your Menu small and straightforward. Research shows that creating a big and messy menu is the main reason for the failure of restaurants. It reduces the chances of customer retention. The entire supply chain of sourcing, procuring and managing become the biggest challenge. So, avoid creating a big menu with various items.
Step 4- Get Done With All The Licence Required Which Will Ultimately Make Your QSR Legal:
In a fast-food restaurant, you will require five of the license which is namely can be Food license from FSSAI, GST registration, Licence to local municipal Corporation health license, License to police eating house, License to fire. Make sure you should have all of the legalities. So that there’s no problem in future regarding these.
Essential Licenses to open Quick Service Restaurant :
- FSSAI (food safety and standards authority of India
- health/trade license
- Shop and establishment act
- GST registration
- Certificate of environmental clearance
- eating house license
- Music license
- Trademark of restaurant
- Eating house license
Step 5- Count on The Number Staffs That Are Required to Help You Out in QSR Business:
If you want to know about your favourite restaurant, secret, then your treasure lies there in the kitchen. You need to choose the chef who is impeccable at his work as this is the most crucial person in your team.
- OPERATIONAL MANAGER
- KITCHEN STAFF
- SERVICE STAFF
- Head Chef – This individual will develop our dishes, oversee food production, and design the training curriculum for new kitchen staff.
- Line Cooks – These will be the team members that prepare our dishes on a day-to-day basis.
- Waitstaff/Food Runners – Depending on our order flow, we may have food runners that bring orders out to diners.
- Counter Staff – These employees will perform some combination of taking orders and accepting payments from customers with your cash register or POS System.
Step 6- Arrange All The Kitchen Equipment That is Required And Other Raw Materials as Well:
As you are dealing in the field of foods, then the basic need for your restaurant is kitchen equipment. You need to invest in a table which will be coming under 6k to 7k. While it’s on your wish if you want all the material in your kitchen, you can take the machine as your usage.
Your Restaurant should be well equipped with;
- Advanced delivery module for tracking home deliveries
- SMS integration to keep the customers updated about there order
- Central kitchen management
- Multi-store management to monitor the raw material usage and the overall circulation of food across outlet
- Average price per customer Rs. (50-500)
Step 7- Make Sure to Advertise Your QSR Well:
The cheapest model to advertise your restaurant is pamphlets. Keep in mind that you are going to spend more than Rs.2000 on logo designing, menu designing etc. Moving with pamphlets idea will be costing near about 25,000, but you can customise them as you wish.
Marketing. Branding and Advertising Strategy:
- PUBLIC RELATIONS (PR)
- Direct Marketing
- Better Uses of Customer Database include; loyalty programs and other offers, discount and deals.
- Word of Mouth: If you do build a great experience, customers tell each other about that. Word of mouth is compelling.
Step 8- Install a POS or Other Technology That Will Make Your Operation Effective, Easy And Quick:
The primary thing which you need to install on your counter is the POS which will help you to make the accurate and right bill. Make sure to choose the POS based on the niche which will be suitable for your Quick service restaurant. You can operate it with any of the devices such as mobiles, tablet, computer etc. This system dedicated to save your time and make your process easy.
Automated Operations Should be:
- Automatic billing
- Stock and inventory management
- Recipe management
- In-depth reporting
- Live data tracking
- Mobile reporting
- Off-line reporting
Step 9- Choose The Suitable Staff Uniform:
Think of the time when you used to go to school and wear a uniform you look professional right? So when it comes to the restaurant staff, we somehow neglect this step as our primary focus is on marketing and other things. While this step will mark the identity of your restaurant around the neighbourhood. So choose wisely uniform of your staff such as chef coats, shirts, smart shirts etc.
Step 10- Some of The Other Things That Seem Minor, Get those done as well:
As you are going to offer takeaway and home delivery services, then you might be needing a landline numbers at least two phones. Activate the cloud telephony services because of which the call will be transferred to the other number if one of the names is busy.
Further need includes electricity fitting and plumbing services that can be costing around Rs.8000. Buy one useful calculator, a daily account book, one of the fire-extinguisher, etc.
Also to keep the market place, your QSR must be able in;
- Online Ordering
- Online Payments
- Online Table Reservation
- Table Billing (when we move in tier 1)
- Integrated Feedback Management
Step 11- An Opening That Set The Staff Up:
You might have heard about the old saying that “Practice makes perfect” and you should follow the same for your restaurant opening. Fix up a date for the opportunity and invite a limited amount of people before publicly opening it. It will help you get an idea about staffs working so that you will be able to guide them.
Here are some of the strategies to launch your Quick Service Restaurant;
- 1- Put some of the dishes of your menu into a short card, you can call it a “beta” menu. Just put little number of meals in that card so that you can run your restaurant opening smoothly. Try to attract them to the full list with inviting them to be back at your restaurant.
- 2- Don’t try to operate a full day. Make the plan to offer breakfast and lunch for the four weekdays then dinner on the fifth day.
- 3- Consider inviting your close friends and family with the beta menu and some complimentary drinks so that they can give you feedback and help you to train your staffs.
- 4- Throw a soft opening for neighbourhood homes and businesses. Doing so will help you to gain loyal fans and popularity as well. These people will suggest your restaurant to their friends and colleagues so that they get to visit your restaurant.
- CAPITAL EXPENSES
- OPERATING EXPENSES
- COST PROJECTION
- REVENUE PROJECTION
- REVENUE PER PERSON
- STATEMENTS OF INCOME
The initial cost of setting up: Rs 20 Lakhs, which include;
- rental/ lease cost of a space ~ 1500 Sq. Ft. in a semi-urban area,
- furniture cost (around 10-11 tables and adjoining six chairs set for each)
- Three air conditioners
- other furnishings, utensils etc
Significant Suppliers Of Quick Service Restaurants or Fast Food Chains Are:
- Veg and chicken Tikki: Vista
- Dairy: Amrit Foods & Dynamix
- Bakery & Liquid Products: Mrs Bectors
- Buns: Cremica Industries
- Dehydrated Onions: Jain Foods, Jalgaon
- Cheese: Dynamix Dairy Industries Ltd.; Pune
- Eggless Mayonnaise: Quaker Cremica Pvt. Ltd. Phillour
- Sesame Seeds: Ghaziabad
- Beverages: Coca Cola
- Deserts: Amul or Vadilal
Nowadays, these quick-service restaurant industry is gaining popularity like anything. You see the investment in this business is less than other companies. If you run your restaurant very carefully, it will give you sweet fruits. However, follow these easy steps to open a new quick-service restaurant. Hope you liked this blog where we have provided step by step procedure to open a quick-service restaurant. If you have any query or need any advice, then you can reach us by commenting in the comment section.
Also Read: Why to open QSR, not FSR.