Foodpreneurship is rapidly growing in India. We Indians love exploring different varieties of food and beverages not only do we enjoy eating, but we also enjoy serving others. Most people who enter the food industry usually have a great sense of taste or strong cooking skills. To become a successful foodpreneur, you need to master at least one of these skills, if not both. Along with this, you must also understand basic marketing, sales, and budgeting especially if you want to open a café on a low budget in India.
The truth is, many young people secretly dream of owning their own café someday. Starting a café in India is relatively easy because it doesn’t require a very high investment. In fact, the café business has contributed around 11% to the total organized food services market in recent years, according to a report by Technopak Advisors, a leading consultancy firm.
This article will guide you with the right plan and the approximate budget required to open a café that truly caters to coffee lovers.
How to Open a Cafe with a Low Budget in India?
1. Location
First things first choose a location that aligns with your business purpose. Decide whether you want your café near colleges, parks, offices, or on the outskirts of the city. If you want to keep your budget low, avoid selecting posh or overly popular areas, as the rent will be significantly higher.
Also, ensure that the location you choose does not create any drawbacks for your business. Look for a place that is easy to access and offers sufficient parking space for customers.
2. Lease
This is another crucial factor to consider when you are working with a tight budget. Once you finalize a shop or location, make sure to thoroughly read and understand all the terms mentioned in the lease agreement, including the pricing details. A lease agreement generally covers everything from monthly rent to various restrictions.
In some cases, certain agreements do not allow business expansion or modifications to the property. Therefore, it is always safer to consult an attorney before signing the lease to avoid any future complications.
3. Permits
If you want to get connected with the food industry, you need to remember that you have to get several permits that are necessary for opening a cafe. The list includes an electrical and fire license, health permit, sanitation, and waste permit, etc. You will also have to get wine and beer permit if you want to provide the alcohol. You should never ignore this type of work before involving in the actual business.
4. Finances
If you want to keep your startup cost low, you can begin by using your own savings to launch the café business. Another option is to ask your family members or friends to invest in your venture. For this, you will need a clear business plan that explains your goals, vision, mission, and objectives for opening the café.
Additionally, you or your investors can approach banks for financial support. Many banks offer small business loans that can help you cover the initial setup and operational expenses required to start your cafe.
5. Equipment
If you are planning to open a café, you will need to invest in essential equipment such as stoves, refrigerators, freezers, and coffee makers. You will also have to spend on seating arrangements, including chairs, tables, and other furniture.
However, if you want to keep your budget low, you can opt for Indian-style seating. Using simple, authentic, and culturally inspired themes can give your café a unique look while helping you save money. This approach not only creates an aesthetic ambience but also significantly reduces your overall setup cost.
6. Structure
If you want to avoid a high budget, do not choose a large space or offer an overly extensive menu. Start with a small café and focus on a few signature dishes and beverages. Remember, you can always expand later if your business performs well.
In the beginning, customer flow is usually low, and managing a big setup can become difficult and costly. So, take it slow, keep things simple, and maintain a low budget during the initial phase.
Smart Recruitments
Another crucial aspect of setting up a café is hiring the right people. Do not compromise on quality to save money. Hire staff who are well-trained, punctual, and sincere in their work. The overall impression, sales, food quality, and hygiene of your café largely depend on the people working there. Skilled chefs and well-mannered waiters can significantly contribute to the growth of your business.
