What is the minimum cost of starting a small cafe in a small town in India that serves basic fast food, coffee, etc.?
You can check the answer of the people under the question at Quora “how much is it to open a coffee shop“
What is the minimum cost of starting a small cafe in a small town in India that serves basic fast food, coffee, etc.?
You can check the answer of the people under the question at Quora “how much is it to open a coffee shop“
It all depends on the location, area, rental and deposit required for the small cafe.
In Small town the normal rate applicable could vary between Rs 60 per sq ft to Rs 10 ft depending on the location you choose. The deposit or Pagdi could be more.
Assuming you need 700 sq feet area the rental cost could be Rs. 42000 per month to Rs 7000 per month. If you look at utensils and equipment it would cost you Rs 35,000 to 3,50,000 depending on how modern and high tech you want to go. The Furniture for the customer can be as low as Rs 5000 if you choose Dhaba style or 5,00,000 if you go for decent interior and good chairs.
Cost of running the restaurant if simple non air conditioned place it could range from nothing to 45,000 per month. The workers could cost close to 8000 per month to 12000 per month for the cook, Rs 7000 to 9000 per monthfor the servers and cleaners and Cashier 0 if you manage yourself to 10000 per month if you give other person to manage.
The food operational cost would be any where between 12,000 to 20,000 per day assuming you are able to get sales of 25000 to 60000 per day.
Capital cost would be 1.8 lakhs
Running cost 1.2 lakhs per month.
If marketed properly you should aim to get the profit from month 3. Therefore you would require close to 3.6 lakhs
As per my understanding, if you calculate total cost including, place (consider on rent), furniture, staff, marketing and promotion, kitchen stuff (utensils , crockery etc.), finance to run smoothly for atleast a month, until you start generating profit, you’ll require between 8-10 lac (INR).
It depends on many factors like number of seats you would like to have , the decor and also the number of items you would like to serve. A small town has the advantage of lesser operational cost like rent of the shop but has also the disadvantage of lesser footfalls unless it’s a District town where people from surrounding areas come on work or business.
Let’s try and work out an estimate of launching cost on the assumption that your no of seats would be 20.
Rent ( initially for 3 months [2 months advance and 1month current]) Rs 30,000/
Registration and licenses including Fssai license. Rs30,000/
Decor and Furnishing : Rs 100,000
Crockery and utensils : Rs 25000
Running cost for 3 months ( wages, electricity ,rent and consumables at Rs 25000/ per month: Rs 75000/
Raw materials ( 1 week) Rs 15000
Total (1 to 6). Rs 275,000/.
It will be good to have a capital of Rs 300,000/.
You have already failed before you are even open for one day. No one here on quora knows your full business plan or where you wish to locate your cafe. No on here can tell you what it will cost you. This is something that you need to do write every single possible expense down on paper and research it with people and books written by people who have done it in your area. Not in other areas. You need to be absolutely sure of your potential customer base. And allow for working capital beyond your opening if you make it that far. It does no good if you open the doors then 6 months a year down the road you can’t sustain your business. You have to draw loyal clientel who regularly come in every day but also be able to draw other people passing thru or come in occasionally with their families. It is extremely unfair to your regulars ro get them so used to your place then a year down the road have to tell them they will have to find somewhere else to go or even worse they show up at there usual time and there is a sign on your door saying closed for good. There is nothing good about that at all. You have to know what you are getting into and cost wise and asking people what is the minumin cost is your first and fatal mistake. It shows a negative mind set and only a willingness to just get bye. You need to find out what is your maximum amount of cost you will need and think beyond your opening. Where do you want to be 5 years down the road 10 years 15. Or 20 beyond that. Do you want a viable business you can feel comfortable to leave to your children and their children some day.
Prepare a Budget for your cafe and understand how deep is your Pocket.
Follow the Basic Industry rules and no rocket science please. Divide your money in 2 Parts. Capex & Opex
If your furniture budget doesn’t allow you to spend more than 1.5 Lac then don’t look at expensive furniture.
Same is the case with all Interiors and Equipments.
Hire a Consultant and learn all form and formats of Operations and maintaining best practices.
Prepare good food and don’t assume that people will make profit for you so be involved and plan expansion.