How to Begin a Quick Service Restaurant (QSR) cum Cloud Kitchen Business for Less Than Rs 5 Lakhs

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You’ve probably heard that Cloud Kitchen and QSR is a thriving venture. We’ll show you how to combine these two ideas and start a profitable food business for less than 5 lakhs.

The Quick Service Restaurant, also known as the Fast-food Restaurant, is a type of restaurant format that serves fast food cuisines such as Pizza and burgers while requiring minimal table service. With the advent of cloud technology, which allows for online ordering, and the ongoing Covid outbreak, cloud kitchens appear to be the only logical way to manage high rentals and low margins. It is one of the most profitable restaurant formats and has thus become the most popular choice of food business among restaurateurs. The takeaway restaurant or QSR format appears to be the most practical, with a high return on investment.

You can charge the price of a casual dining menu while saving money on the area, furniture, air conditioning, crockery, and so on. But there are also difficulties. It is not always a good thing in the cloud kitchen business. So we’ll show you how to start a takeaway and Cloud Kitchen business that focuses on quick service. In this manner, you can reduce the risk of the business while earning a high profit in the long run.

Step 1: Choose the Location

One of the most important factors determining a restaurant’s success or failure is its location. Keeping the target audience in mind, the takeaway plus cloud kitchen restaurant should ideally be located in a densely populated area. Accessibility and visibility of the area are also important factors in attracting customers. QSRs and takeaways prefer ground floor locations near the front.

To build a good kitchen, the store shop should be at least 450 square feet in size. The counter and serving area should not be larger than 100 square feet. As a result, the rent for 450 square feet should not be more than Rs. 30000 – Rs. 40000. So, out of the 5 lakh investment, Rs. 120000 goes to the landlord, who receives three-month rent and a one-month rent deposit. It varies by city, but you can negotiate and get it for less than Rs. 120000.

Step 2: License

A takeaway restaurant with a cloud kitchen must have five licenses: an FSSAI Food License, GST registration, a Local Municipal Corporation Health License, a Police Eating House license, and a fire license. A food license, GST registration, and a Local Municipal Corporation Health License are the most important. Fire permits and other permits can be obtained once you begin restaurant operations; however, it is recommended that you have all of the permits in place before opening the outlet to avoid legalities and minor hiccups that may arise due to the unavailability of these licenses.

Step 3: Hiring Staff

A great team behind the counter and in the kitchen is often the difference between a successful quick-service restaurant and one that fails. Because they not only cook and design the menu but also lead and guide the rest of the kitchen staff, the Chef is most likely the most important member of your team. The restaurant industry has a high attrition rate, particularly at the entry-level. We will be publishing more content on How to Hire Properly in the near future.

A minimum of 5-6 employees is required in a takeaway kitchen. Two chefs with a thorough understanding of every department of the kitchen are required. Chefs and helpers are paid based on their experience. The average salary of a chef at Commis level 1 is Rs. 14000- Rs. 15000, while helpers and other staff earn between Rs. 6000 and Rs. 8000 depending on their position. Aside from the kitchen staff, two delivery boys and one at the counter to take orders are required.

In today’s technological age, there are numerous third-party delivery services with whom you can contract for work on a per-order basis. They charge around Rs. 50 for the first five kilometers and Rs. 10 for each additional kilometer. Even if you have partnered with a Third Party for deliveries, it is highly recommended that you have at least one full-time and part-time delivery boy as a backup. These third parties will assist you in saving the delivery cost of the bike.

Step 4: Kitchen Equipment

Restaurant kitchen equipment is an expensive investment, and the same is true for cloud kitchens or takeaway restaurants. A small four-square-foot working table can cost between Rs 6-7k. However, having everything new in the kitchen is not always necessary; most kitchen equipment can be purchased used or old. It would save around Rs. 1 lakh. While working tables, refrigerators, store racks, and cupboards can be reused, burners, Tandoors, and gas pipelines should be replaced to avoid the unavoidable additional costs of repairs and gas leaks. Aside from the previously mentioned kitchen equipment, new mixers, fry pans, knives, cutting boards, and other utensils should be purchased.

The kitchen costs about Rs. 250000 to set up. Finally, depending on how much you sell in the first five days, raw materials such as groceries, packaging, dairy, and poultry will cost you Rs. 15000.

Step 5: Marketing

Facebook Ads are a tried-and-true marketing method that is also one of the least expensive. You will also need to spend money on menu design and logo design, which should not exceed Rs 2000. For the first two months, Rs.30000 spent on social ads is sufficient to market your restaurant.

Aside from social ads, consider investing in a high-quality billboard to attract attention. A typical billboard costs about Rs 10,000.

Step 6: Staff Uniform

Uniforms for employees are an important aspect of a restaurant that is frequently overlooked. Employees must be clean, hygienic, and well-dressed at all times. There are several outfit options available, including chef coats, smart shirts and t-shirts, and an apron. To save money at the start of operations, it is preferable to have a low-cost uniform. We recommend good t-shirts that cost around Rs 400 per piece and no more than Rs 250 per t-shirt when purchased in bulk. So, you can set aside Rs 8000-10000 for staff uniforms, which will add a nice touch to the brand of your restaurant.

Step 7: Counter Design

It is best to obtain raw materials and design your counter with the assistance of a carpenter based on your needs. Choose a good standee and menu board for the front of the house to give the brand an overall feel. Depending on the design of the counter, the counter and front-end will cost you between Rs. 25 and 30k.

Summary

To be successful in the QSR and cloud kitchen space, you must create a distinct concept and provide exceptional customer service in terms of food variety, quality, and delivery time. Long-term viability still necessitates 100-150 orders.

To summarise, let us go over the steps and the budget required. You’ll need around Rs. 120000 for a shop and property. You will need approximately Rs. 20000 for licensing. Kitchen equipment, groceries, and packaging will cost approximately Rs. 250000. Initially, you should invest around Rs. 50000 in marketing. The cost of a staff uniform will be around Rs.10000. Mobile phones and other utilities are expected to cost around Rs. 15000. A counter can be set up for around Rs. 30000. Aside from that, we recommend setting aside three months’ salary in advance because you will need some time to speed up the sale.

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