Cost of Opening a Cafe in India in 2022

The estimated cost of opening a cafe in India is Rs.15 - Rs.20 Lacs.

 

Opening a cafe is one of the best businesses if you are a social butterfly. But, even if you are not, it's the food that speaks.

 

In fact, if you work sincerely, it has a good expanding potential.

 

Once you set your foot, you will know that a cafe is a high profit and growth-oriented option. 

 

For this purpose, here is the break-up of the cost of opening a cafe in India.

 

Summary of Expenses

 

• Renting or Buying a Place
• Legal Registrations
• Interior Designing Expenses
• Furniture 
• Cooking Ingredients and Equipment
• Crockery
• Packaging Supplies
• Wages and Salaries
• Branding and Marketing

 

Renting or Buying a Place

 

As soon as you have the idea of opening a cafe, start looking for a place. 

 

Or, you might already have something on your mind.

 

Here is an estimated amount that you may have to spend on buying or renting the place:-

 

Buying:- Starts from around Rs. 10 Lacs - Rs. 50 Lacs depending on your location. However, there is no upper limit. It depends on your budget, choice of place, area and negotiations.

 

Renting:- Starts from Rs. 10,000 - Rs.40,000. But again, it will depend on the same factors as above.

 

The right location will do 50% of your work to make your cafe successful.

 

In other words, location plays a crucial role in the success or failure of a business.

 

Generally, a cafe located in a crowded place will get more customers than one in a less crowded area.

 

With this in mind, you might already know the crowded places in your town.

 

For example, near a popular college, a famous park, a student area, in a mall, near offices etc.

 

So, look around and select the most visible place for your cafe.

 

Another point of consideration is that a cafe on the ground level has more visibility and accessibility compared to one on the upper level.

 

Legal Registrations

 

Spending on legal registration will be one of your best decision in the long run.

 

Not to forget, it is mandatory as well

 

You can register your cafe as any of the following:-

 

• Sole Proprietorship (Rs. 1990/-)
• Partnership Registration (Rs.3920/-)
• One Person Company Registration (Rs.5990/-)
• Private Limited Company Registration (Rs.6890/-)

 

These are the easiest and best legal structures for a cafe. You can fill up the form on the right to get started.

 

However, it is advisable to choose private limited company registration if you have expansion plans.

 

On the other hand, if you are a single owner, you can go for a sole proprietorship.

 

Apart from this, some licenses are required for a cafe in India.

 

Interior Designing Expenses

 

The looks of the cafe actually play a really crucial part in attracting your customers.

 

For this purpose, you can either hire an interior designer or do it yourself.

 

If you go with an interior designer, it might cost around Rs. 75,000 to Rs. 2 lacs depending on the area and theme.

 

If you want to do it yourself, you may already have a vision board and theme for your cafe. Or you can either get some ideas from Pinterest.

 

Besides, if you do it yourself, of course, it will cost less. 

 

So, the estimate could be around Rs. 20,000 - Rs.50,000, including any construction, paint, lighting and design.

 

While designing your cafe, keep the following things in mind:

 

• Make it Instagrammable
• Spacious (Have a Variety of Tables)
• Enough Sitting Space
• Comfy Ambience
• Niche based
• Light it Right
• Colours (choose the scheme wisely)
• Pay attention to restrooms
• Music System Installation

 

Furniture 

 

Furniture will bring the grace your cafe needs so much to stand out.

 

Besides, you can either buy your furniture or rent it as well.

 

If you are someone who constantly looks for a change, I suggest you go with renting.

 

For this purpose, you can visit Pepperfry or your local furniture stores (if they provide renting services).

 

However, you can check out Amazon and Flipkart if you prefer to buy.

 

The budget you will need for furniture is around Rs.70,000 - Rs. 2,00,000.

 

But, it will mostly depend on your theme, the furniture you choose and your space.

 

Cooking Ingredients and Equipment

 

The cooking items will depend on your menu.

 

Also, you will need to have a monthly or weekly stock up on that.

 

Mostly, it will cost around Rs.30 -35 thousand.

 

Cooking tools and machines like microwaves, ovens, mixers, stoves, and utensils will need an investment of around Rs. 1.5 - 2 lacs.

 

When sourcing all of it, keep in mind that poor quality will increase losses and customer dissatisfaction.

 

Crockery

 

Now coming to crockery, I would suggest you take a trip if you are passionate.

 

You can check out these markets that have some cool crockery options and budget-friendly prices:-

 

• Banjara Market (Delhi)
• Lajpat Nagar (Delhi)
• Hauz Rani Market (Delhi)
• Crawford Market (Mumbai)

 

You can have a budget of around Rs.50 -70 thousand for this purpose.

 

Packaging Supplies

 

You will need packaging supplies whether or not you provide delivery service.

 

To source it in bulk, you can check out the wholesalers on Indiamart.

 

It will cost around Rs. 15,000 to Rs. 20,000 initially.

 

Here is a list of packaging supplies you might need:

 

• Spoons
• Forks
• Boxes
• Paper bags
• Tapes
• Small polythene packets
• Customised Business Sticker 

 

Wages and Salaries

 

Firstly, it is a recurring expense.

 

For this purpose, you may need to spend anywhere from Rs.60,000 to Rs.2 lacs per month.

 

Here is a list of people you will need to hire for opening a cafe in India:

 

• Cooks
• Cashier
• Manager
• Waiters
• Cleaner
• Security  (if necessary)

 

Most importantly, make sure to run a background check before hiring. 

 

Branding and Marketing

 

Now, this is the last cost of opening a cafe in India. But, this will happen after opening a cafe.

 

Generally, the budget for branding and marketing is around Rs.5,000- Rs.20,000 per month to spread the word. 

 

However, it is not fixed, as it depends on the medium you choose.

 

For branding, make sure you have a beautiful, attractive board outside your cafe.

 

Further, put your brand stickers on your packaging supplies and menu.

 

Also, you can get a custom neon design for putting inside your cafe. (Because it is trendy these days)

 

For marketing, you can go with newspaper and billboard advertising.

 

At the same time, take advantage of social media as much as you can.

 

The reason is most of your customers are online these days.

 

Moreover, Social Media is the "NEW Word of Mouth".

 

Later on, you can also apply for Trademark Registration once you establish a brand identity.