How can you start a Quick Service Restaurant on a small budget?
Quick service restaurants:
QSR stands for Quick Service Restaurant. (QSR) can be described as a kind of restaurant that serves certain foods which require minimal preparation and are served through fast services. Most often these restaurants, also known as quick service or QSRs serve quick food items from an unspecified menu because they are prepared in a shorter amount of time with minimal possibility of variation.
QSR restaurants are known for having standard processes, modular and effective that help in reducing lead times to fulfill orders, but they still provide the same quality as is expected by customers. The preparation methodology and the use of technology are key elements of a quick service restaurant (QSR).
Restaurants that offer quick service have a lot of variation in the kind of services they provide. There are also drive-through eateries that do not have seating or tables however, rather they collect the order and distribute the food through only one counter. Orders are typically already prepared and standard and have no scope for personalization. These kinds of companies do not depend on margins on their products, but rather on the amount of footfall. One key strategy employed by fast service restaurants is bundle pricing. QSR bundle their food offerings to create a package of complementary meals, for instance McDonald’s value meal that includes fries, soft drinks and the burger. The majority of people prefer these meals to separate food items because the latter provide the impression of adding value and offer a variety of choices for their money. For sellers, they offer attractive discounts on bundled meals, and also set a significant profit margin to draw customers into these deals.
Quick service restaurants typically operate as franchises or chains since they make money by the amount of customers they see. The operation of multiple locations allows them to benefit from the frequency of footfall at multiple locations and enhance the value of the company. They typically serve food items that complement each other or even a particular type of food item such as Starbucks. Starbucks offers beverages as well as light snacks that are a perfect match for its flavor. In the same way, Pizza hut and Domino’s offer quick food, along with lighter beverages. Standardization in all aspects is necessary for QSRs to ensure that they are able to provide quick service for customers. This includes
Customers go to the counter to place an order. After receiving their order, they pick it up on their own from the counter. Self-service assisted restaurants are places where the order is picked up by the patron or food is delivered at the dining table of the patron
Restaurants where both order placement as well as the food delivery is performed by staff members at the table.
Real-life examples of fast service restaurants include Mc Donald’s, Subway, Burger King, KFC etc. Recent trends have revealed an immense shift in operation of fast-food restaurants in the local area. Due to the increase in food delivery services and restaurants, they have been making a separate section of food items, which are prepared in bulk and later stored for delivery to delivery companies. This gives them the opportunity to earn profit margins without investing in seating areas, but also offers the opportunity to market their restaurants’ brands.
Follow these steps which will allow you to open fast-food restaurants in India.
- Pick the place of the fast-service restaurant
- You must obtain all the necessary licenses for making your QSR legal
- Be on the board with the appropriate staff number
- Set up the kitchen equipment and necessary raw materials
- Install POS equipment or billing software to streamline your processes
- Choose the uniform of the staff.
- Promote your QSR properly
- Complete all other tasks completed
If you’re planning to begin this dream venture of yours, then you may need to learn more about the process or the step-by-step guide to start a fast-food eatery in India. Don’t you worry! We’ll go more deeply, and give you all the essential information that will help make your process seem effortless.
The location is among the most crucial factors that will determine the success or the failure in any eatery. The restaurant that serves takeaway food should be located in a crowded location, with the intended customer in mind. The accessibility and visibility of the area is also crucial to draw customers. The ground floor shops located on the front are most often used for Takeaways and QSRs.
The shop must not exceed 450 square feet in size for an excellent kitchen. The counter as well as the serving space should not exceed 100 square feet. For 450 sq feet the rent shouldn’t exceed 40-45k. Thus, out of five lakhs invested one-third of the money goes to the landlord who receives two months rent as well as a one-month rent payment in the form of an advance.
Also, you must ensure that the structure is supplied with water and drainage systems. Also, you must be able to obtain a No-Objection Certificate (NOC) by the property owner that says he will have no issue subletting his property for a food establishment, and from neighbors. The NOC is needed to obtain an Local Municipal License, and Food license.
You must obtain all the necessary licenses for making your QSR legal
A takeaway or QSR typically requires five licenses, which are: Food License from FSSAI GST registration, Local Municipal Corporation Health License, Police Eating House license as well as a fire permit. Of all of them, Food license, GST registration as well as Local Municipal Corporation Health License are the most crucial ones required for the beginning of the business. Fire license and similar permits can be obtained when you begin operating your restaurant but it is recommended that you get all permits in place prior to opening the business to keep free of the legalities and minor hiccups that can occur from the absence of these permits.
Three licenses need to be applied for separately. To apply for a Food License, you can apply online at www.fssai.gov.in. It is also possible to apply by various agencies who cost around Rs 5,000 for the entire application and cost. Any Chartered Accountant is able to assist you in completing registration for GST registration. For the final step, to obtain a Municipal Corporation health license, you need to get in touch with the local health inspector and they will walk you through the procedure to obtain the license. The cost for the license is low and is around 3000 rupees. Police Eating House and Fire licenses are available once you’ve obtained the Municipal Corporation’s health license. The process can be completed within the first two to three months of operation.
Here’s a complete list of the permits required to run restaurants in India.
The key to success in a fast-service restaurant is usually having a strong staff behind counters as well as within the kitchen. The chef is likely to be the most important member of your team because they do more than cook and plan the menus; they also manage and direct the other kitchen staff. The turnover rate is quite high in the industry particularly in the lower levels. Learn about hiring the best in your establishment here.
When a restaurant is a takeaway at least 5-6 workers are required for the kitchen. Two chefs must be knowledgeable of each kitchen department. The salaries of cooks and other helpers is contingent upon their previous experience. The salary for the chef at Commis Level 1 is between Rs 14000 and 15000, as for the helpers and other staff salaries range between Rs 6000and Rs 8000 based on their job. Along with the kitchen employees two delivery guys are needed, as well as one at the counter to take orders. Learn how to design the Human Resource structure for your restaurant here.
In the age of technology, there are a variety of third-party delivery services which you can join to work on a per-order or per order basis. They charge somewhere about Rs 30 for the first 5 km and Rs 10 for each additional kilometer. It is strongly advised to have at minimum one delivery driver full-time and part-time in the event that you’ve joined forces with a Third Party for deliveries, to be able to back up. Third parties can assist you in reducing costs on the bicycle to deliver.
Set up the kitchen equipment and necessary raw materials
Kitchen equipment is an important cost for the restaurant industry, and this applies to the fast-food or takeaway restaurants. A table that is small enough for 4 square feet can be priced at about Rs 7 to 7k. However, it’s not necessary to buy everything brand new in the kitchen. Most kitchen appliances can be purchased older and used. This could save about Rs 1 lakh. While refrigerators, tables for work racks for storage, cupboards are reusable burners, Tandoors and gas pipelines must be brand new in order to prevent the costs of repairs and leaks that are likely to occur. In addition to the above kitchen equipment, mixers and fry pans, knives, cutting boards, as well as other kitchen tools should be purchased brand new.
A total of Rs. 2,30,000 has been invested in the setting up of the kitchen. Additionally the raw materials like packaging, groceries, dairy products, poultry and even dairy cost around 20000 for the initial five days of operation, based on the sales you earn in those first 5 days.
Marketing Of The Quick Service Restaurant
The most tried and tested method of marketing , and the cheapest option is to distribute pamphlets. Also, you need to spend some money for menu design and logo designs that shouldn’t exceed Rs 2000. In the initial two months, pamphlets worth 30k will be sufficient to promote your restaurant. The pamphlets that are 30k in high-quality paper can cost about Rs 25000. You can alter the quantity and quality of the pamphlets based on your budget. Learn the ways the distribution of pamphlets and flyers will increase sales at your restaurant..
In addition to pamphlets, you can invest your money into a high-quality billboard that will draw attention to your business. A typical billboard is priced at $10,000. You could also invest in your own on-line advert through Social Media as well as Google Adwords. You can also make use of your restaurant’s POS system to advertise your restaurant effectively.
Find out how you can implement the best Digital Marketing in the success of your QSR Restaurant.
Install POS equipment or billing software to streamline your processes:
POS can be the single most important and vital element in the successful management and operation of any food or restaurant outlet. Select a POS that can be customized to meet the needs of a Quick Service Restaurant. Learn more about how to select the right Restaurant POS here.
The software we suggest is The POSist system,which is hardware-independent and completely browser-based. It can be used with any internet-connected device like a tablet, laptop, computer or even your smartphone to generate bills. The price for this cannot exceed 25000.
The uniforms of staff are an essential element of any restaurant which is often overlooked. Everyone on staff must be clean, neat and properly dressed. There are many kinds of clothes like Chef coats and smart shirts, the apron, as well as t-shirts. When you first begin operations, it’s important to purchase a uniform that is low-cost that will help you save on the expense. We suggest good t-shirts that cost about Rs 150 each and if purchased in bulk, they will cost less than 120 for a shirt. This means that you can set aside between Rs 6000 and 7000 to cover uniforms for your staff, which will give an attractive appearance to the restaurant’s brand.
It is best to get the basic materials and create your counter according to your needs using the assistance of an expert carpenter. Look for a sturdy standee and a menu board at the front of the counter to provide an overall feeling that is representative of your brand. The counter and front-end can cost between 20 and 25 lakhs depending on the style of the counter. This article will show you how to design the branding of your establishment.
The Takeaway and Home Delivery outlet requires a landline and at minimum two phones. You can sign up for an Cloud Telephony subscription that forwards the call to a different number in the event that the initial number is not in use. You can also record the call to help you train. The cost should not be more than 10k.You will also need to invest about 8000 for plumbing and electricity installation. In addition you’ll need a reliable calculator, fire-extinguisher daily book of accounts and attendance registers. Another option is to utilize your restaurant’s POS to include an automated call center to take orders by phone.
The industry of quick-service restaurants in India is growing in a huge way. Although the costs are minimal in comparison to other types when you begin it properly and successfully, you can reap gains. So adhere to the steps outlined as your primary guideline and follow them with care and watch as you’ve always wanted a quick-service restaurant to develop!
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