A Step By Step Guide On How To Open A Restaurant And Bar In India In 2023

Two women sitting at a Restaurant Bar counter

Being a proud owner of a restaurant, especially that of a restaurant cum bar, or restro-bar seems like a glamorous job. Opening your own restaurant is indeed a financially rewarding business with high returns and is also considered easier and more fascinating than most jobs. However, glorious as it may seem, it is also one of the most tedious businesses out there, with high risks. In fact, 60% of all restaurants shut down within the first year of operations. Therefore, it is important to have a clear plan and understanding of the business before you venture out into the restaurant industry.

How To Open A Bar Cum Restaurant 

In this particular article, we’ll discuss how to open a successful restaurant cum bar in India.  You will get to know about the investments, what kind of location you need, the required workforce, and the licenses needed for opening and running a restaurant cum bar. However, before you move ahead, you need to decide what kind of bar cum restaurant you are going to open. There are six types of bar cum restaurant formats, namely-

  • Club
  • Specialty Bar
  • Brewpub or Beer Bar
  • Sports Bar
  • Neighborhood Bar
  • Franchise bar

Once you have decided on the format, you can now consider the other requirements for opening a restro-bar.

1. How To Decide The Location Of The Restaurant And Bar

Unlike casual dining restaurants, the restaurant cum bar needs a space of around 5,000 SqFt to 10,000 SqFt ideally spread over one to two floors. In present times, the trend is to have an open and a closed sitting area so as that customers can enjoy both kinds of ambiance based on their preferred choice. Apart from that, you should look for good high-end shopping streets and markets, or high-end malls and near office complexes. According to experts, locations that are near to office complexes that have more than 10,000 to 20,000 employees are the best places to open restro-bars as footfalls are high.

It is more likely that the employees to turn around to the nearest bar or pub to catch up with their colleagues and friends post office hours. However, getting a space of 5000 SqFt – 10,000 SqFt isn’t easy. The average rent for space around 5,000 SqFt can be around Rs 1.5 lakh to 2 lakh (depending upon the location). Also, you should keep in mind that just being present in the right market isn’t enough; you should also have the right accessibility as well so as to get customers and the right footfall. Choose an area that has a designated parking space.

The total cost of acquiring a space for bar cum restaurant comes out to be around Rs 6 lakhs (one month advance and two-month security). Read in detail about how to choose the perfect location for your restaurant here.

2. Choosing The Right Kitchen Equipment And Raw Material

It is essential to have a sturdy backend for your restaurant cum bar. Study Kitchen equipment and good quality raw material help achieve the smooth functioning of the backend.

Having the right equipment not just makes the whole process easy but it also helps in having less dependency on the high-skilled employees. According to industry experts, if you get the right equipment such as burners, fryers, ovens you can drastically save on costs in the long run as they give high returns in terms of quality and speed.  Some of the equipment such as working tables and racks can be bought old or previously used if you want to save costs. The cost of the total kitchen set up also depends upon the cuisine one wants to serve.

The total cost of kitchen equipment may vary from Rs 5 lakhs to Rs 7 lakhs. Also, the raw material at the time of installation may cost between Rs 1.5 lakhs to Rs 2 lakhs. And since we are opening a bar as well, the liquor storage may cost around Rs 10-Rs 12 lakhs. Apart from the kitchen equipment, one should also have good crockery as customers pay attention to each and every detail. A good crockery and bar set-up for a restaurant and bar would cost Rs 6 lakhs.

3. Deciding The Service Area Of the Restaurant Cum Bar

Customers usually visit restro-bars to relax and have a good time. Thus choose the ambiance and colors of your restaurant that promotes this feeling. Warm shades are usually preferred for restro-bars. Apart from this, the furniture should be equally comfortable. So, it is advised to have more soft cushy seats, sofas, loungers and comfortable chairs for dining of the guests. You can further hire an interior designer for giving a complete look and feel of the restro-bar. The professionals may charge you on the upside but the cost will be minimal in the long run if your bar cum restaurant does well. The total cost of interiors, plus furniture may cost you around Rs 15 lakhs – Rs 20 lakhs.

Apart from that, a good POS is a dire necessity as the inventory for the bar cum restaurant is pretty huge and can be difficult to manage. Think of your POS as not just billing software, but as an investment that can help you manage your restaurant better, and also help cut down costs in several areas. Integrated inventory management, CRM, in-depth reporting, and analytics are some of the must-have features in your POS for the restaurant. The basic POS software can cost you around Rs 30,000 per year, but it is advisable to go for the complete restaurant management software, as it helps you in the long run. Learn how can you choose the best pos software for your restaurant here.

4. Licenses And Registration Needed For Restro-bars

The restaurant and bar format require more licenses and approvals than any other restaurant format. A minimum of eight licenses is required for your restro-bar to open.

The licenses required to open a restaurant and bar are as follows-

  • Liquor License
  • Shop Establishment License
  • Police Eating House License
  • Local Municipal Authority License
  • FSSAI License
  • Fire Safety Certificate
  • GST Registration

Other licenses required are Music License, Certificate of Environmental Clearance and License from the Fire Department. Among all, liquor licenses, FSSAI license, GST registration, and local municipal health licenses are the most important ones to start the restaurant operations with. The rest can be applied for once the bar cum restaurant is operational and can be procured in the next two to three months. The total cost of licenses can be around Rs 10 lakhs.

Here is a detailed guide about the list of licenses required to open a restaurant business in India and the steps to procuring them.

Download Restaurant Licenses E-book

5. Workforce Or Manpower Needed For A Restro-bar

An average of 25-30 staff is required for the proper and smooth functioning of a restaurant cum bar. This may include the Head Chef, Ched De Partie, Commis level chefs, helpers, waiters, captain, Bartenders, and bouncers. The salaries of the staff depend on their experience and skills. Find below the average salary estimation of the employees. Below are the details of the number of employees required and their salaries in a restro-bar.

Table showing estimated salary of staff required in a restaurant and bar

You could also keep track of your staff through your restaurant management software. By keeping a track of their performances in real-time helps to identify mistakes and rectify the lags, if any.

6. Deciding The Staff Uniform 

A smartly dressed staff leaves a good impression on the customers.  Since a restaurant and bar is usually a big establishment, it is even more important for your staff to look sharp. For waiters, you can go for shirts and trousers while for kitchen staff t-shirts and chef coats depending upon the level they are working at. At the initial stage of operations, one should have proper branding on employee uniforms, which gives your restaurant an upmarket feel. We recommend good Chef coats (25 units), shirts, trousers, t-shirt and Cap (50 units) which will cost around Rs 75,000 and last for at least six months of the operations.

7. Marketing The Right Way

While taking care of the basic necessities of the restaurant, the small and finer details are often missed. For example, you may consider your menu to be just a piece of paper with your dishes listed on it, but it is so much more than that. A well-designed menu with the logo of your restaurant goes a long way in restaurant branding, and also plays an instrumental role in upselling your drinks. Find out how to create a great bar menu that can increase your bar sales here. 

It is advised to hire a professional designer who can help you in getting the desired logo and menu at a cost not exceeding more than Rs 2,000. Apart from this a well-designed light board, the menu for tables, and pamphlets for offline marketing are essential parts of Marketing. It is advised to invest in developing a good and attractive table menu. One can go from the lavish hard cardboard menu to a laminated booklet. If you have the budget, you can also run paid ads and campaigns on social media for digital marketing. Try out these tips to promote your new restaurant and bar online.

Also, it is important to explain each and every dish in one line so as to help customers order. Remember to train your staff to upsell the menu. Also, online tie-ups are essential in today’s internet age to gain customer traction which will not cost more than a meeting with the alliance team of the food-tech portal.

Market your restaurant and bar

8. List of Types of Equipments Needed

In order to get your resto-bar up and running, you will need the following equipment:

  • Freezers, refrigerators and Ice makers
  • Ranges (Gas/Flat), Grills, and Induction
  • Microwaves
  • Food processors, Blenders, and Mixers
  • Food prep surfaces
  • Food prep equipment, such as Knives, Cutting boards, Pots and pans
  • Mixing bowls, Storage containers and shelves
  • Sinks and dishwashers
  • Utensils, napkins, apron, and linen
  • Keg equipment
  • Bar accessories

A restro-bar requires more capital investment at the initial stage but is also one of the most lucrative and high ROI formats in the restaurant business. However, it also one of the most daunting formats, requiring extreme care and involvement of the restaurant owner. Since you’d be catering to more number of customers, and handling a bigger establishment, your involvement as an owner becomes a must for the successful operation of your restaurant and bar.

It is essential that you keep a track of your business, right from inventory to the sales, and stay updated with the daily reports. For instance, you can use Posist’s Cockpit App that gives you real-time reports and updates about your restaurant business, that you can access right on your mobile.

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Daniel McCarthy is a seasoned restaurant consultant and serves as the Communication Manager at Restroworks, a prominent F&B SaaS company. Drawing from his vast knowledge of leveraging innovative technological solutions, Daniel excels at enhancing restaurant operations and revenue, thereby contributing to the ongoing transformation of the industry.


  1. Hi,
    I am looking forward to open a restaurant cum bar in Pune to be precise in Baner area of Pune. It would be really helpful if you assist me in my project. Please mail me some of the useful tips.

    • hii sir,
      my name is sunny rajput iam mixlogist if u are going to open restaurant cum bar than plz inform me i would like to work in pune i will give u a good bar menu
      mail id-: {…Redacted..}

      • Asias No.1 Hotel Design & F&B Consultants, we have set up some of the best hotels, food courts, fine dining restaurants, bars, cafes, pubs & breweries in India & abroad, complete end to end solution, for info or appointments contact {…Redacted..}

  2. Hi mr.gopal i would like to be ur shareholder or partener. R u interested in partnership?please mail me {…Redacted..}

  3. dear sir,
    I would like to inform you that I have already started a Petrol pump behind the HN 34 at Nadia District, and I also open a Bar cum Restaurant also to excess land of petrol pump,
    if you gave a contract number about this mater please contract my personal Number :- {…Redacted..}
    thanking you..

  4. We have an vacant land in below mentioned address
    If you are interested pls contact us.
    Our land is at Pallavaram prime location and Excellent location we have very good ground water source
    Land is just 4 Km from (Chennai International Airport) located very near to (Deepam Hospitals) and Bus stops.
    I am interested to give Rent/lease my land for Bar cum Restaurant. If anybody interested I will construct immediately as you need.

    Land Details
    Owner: Geetha Murugan
    Carpet Area : 2000 sqft
    Rent per sqft : Rs 70/- (After constructed)
    Rent deposit : 10 months

    PH: {…Redacted..}


  5. Thanks for pointing out how the right restaurant equipment can help you save costs in the long run. If I were to decide on starting in my own restaurant, I will make sure that I am getting the most efficient, effective gear there is. Not only will it help me cut costs, but it will also ensure that I am delivering a consistent quality of food that is expected form me.

  6. my uncle have a property in jaipur at good location …he want to open a restro or bar at his place in collobration or can give on lease basis ..if any body intrested in this offer than please feel free to contact me on {…Redacted..} ot mail me at {…Redacted..}

  7. Starting a restro bar in India isn’t an easy task. Lots of things must be taken into consideration before you imagine your venture to enjoy the returns. With the massive competition in India’s restaurant industry, this article will provide you with all the necessary information, which if diligently followed will keep you ahead of others in the market. Great read! 🙂

  8. Things associated with having a bar is not at all easy, it is always important to understand and conduct an evident research. Creating a brand will serve as a foundation for all other decisions you’ll make as you open your new restaurant. It will define who your target audience is, what types of cuisine you’ll offer if you’ll serve alcohol or not, and what equipment you’ll need. You will want to do some market research to see how many competitors in that niche you’ll have in your community and if your neighborhood will be a good fit for your concept.

  9. One has to face a lot of difficulties while starting a restro bar in India, from procuring the licenses to maintaining a healthy relationship with the customers.
    Owning an operating a restro-bar is a little challenging, but this article has defiantly made the task easier for anyone looking forward to opening a restro-bar.
    Great work guys!

  10. I would like to start a restobar in Noida. Could you give some guidelines for selection of locations in the area and the budget.

  11. Sir
    We have place at ground floor of 2600 sq,ft for setting up a Restaurant cum bar .The address is 1055 Madurdha,Kolkata.Intersted willing parties may contact us by email mentioned below.
    D.R.Das Gupta
    Mob.No {…Redacted..}

  12. hii.. I want to open a bar near indore (M.P.). so , plz guide me… what is the procedure to obtain licence and total project cost at the initial stage.

  13. Hi Myself have plans to start a family restaurant & Bar in Mumbai Thane . Further look for financer for the project .If anyone interested please contact {…Redacted…}

    • Has your project done ? or still is under planning ?
      Would like to join , as Im based at Mumbai.
      If interested , please call {… redacted …}, Sachin VJ.

  14. hi my name is nagraj i want to open a pub in vizag .because vizag city doesn’t seen the pub culture. 2or3 pubs opend in vizag but doesn’t good.so i decided to open a different pub in vizag.i m bloody sure if we start a different pub in vizag it will rock the city. but i need a support that’s the reason i m postng this.
    mobile no;-{…Redacted..} this is my number uif any on intersted please call me

  15. Hi, for any support required to open a Restaurant or Bar you can contact at {… redacted …} Or visit {… redacted …}

  16. hi all,
    want to open a restaurant cum bar in Jamshedpur, Jharkhand
    need help!
    My phone number {… redacted …}

  17. Hi Everyone
    I have taken a shop having liquor license on rent at a prominent place in Thane Mumbai .
    Need a partner having hands on experience of running Bar and Restaurant and also willing to invest equal amount .
    If interested do call me on {…Redacted…}

  18. Hello sir, iam looking forward to open a restaurant cum bar in arunachal pradesh (north east). It would be very helpful if you assist me to find a best bar cum restaurant decorator. Here is my mail link {…Redacted…}

  19. hello sir,

    only planned Bar,how to prepare them,which licenses needed and i needed full details

    stared with Chennai this is my number …{REDACTED}…

  20. sir i have more than 5 acre land on highway 5km out from city i want to enter in this business so i need your guidance please help me i cant invest around 2 crore.


  22. Hello sir i am planning to open a bar cum restaurant. I have the place ready but i need guidance for the setup so can you please guide me in it.

  23. Hello this is Ajay {… redacted …}
    We are planning to open a micro brewery[brewpub] in vizag as if beer culture is spreading in the city its a good opportunity to start a brewery i have some set of investors in hand if any body interested can contact we can meet and discuss I myself have great knowledge in brewing and cooking we are staring this project after the lockdown is totally completed all over the country,if we started this project post lockdown we can open the brewpub some where around december as if it takes some time for licenses and construction, interiors and setting brewing units

  24. I would like to start a restobar in LUcknow. Could you give some guidelines for selection of locations in the area and the budget.


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