Want to Start a Cafe Restaurant? Know These 3 Things

In the early stage, starting a cafe restaurant seems a promising affair; however, difficulties arise gradually on the path
  • BY Jaspreet Kaur

    Feature Writer, BusinessEx

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  • Sep 09,2021
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  • 10 Mins Read

In recent times, coffee has become a popular beverage in India. As foreign coffeehouses have forayed in the country, Indian natives started partaking various types of coffees-- Espresso, Latte, and Cappuccino, to name a few. This gave rise to homegrown coffeehouses as the hot beverage, Coffee started gaining attention of the food entrepreneurs. 

According to a report by Statista, in 2020, the number of organized cafe chains across India was forecast to increase to around 6,200, up from about 3,500 in 2017. The market value of cafes was estimated to consistently increase through the years, reaching about INR 125 billion in 2020. The report also revealed that among the leading cafe brands, Cafe Coffee Day had the highest number of cafe outlets in India, with about 1,556 cafes across the country as of May 2016. The value of coffee in the retail market across India was forecast to be INR 140 billion in 2020. 

Due to the increase in consumers’ preference for coffee, many young entrepreneurs think of establishing a coffee business or cafe. A coffee business seems to be a good opportunity in the  business marketplace. According to the Ministry of Commerce and Industry, the domestic  consumption of coffee was 115,000 MT. As the time is passing by, people are inclining more toward coffee than other hot beverages. While this business opportunity seems enticing, various things need attention while creating a coffee business plan.

In the early stage, starting a cafe restaurant seems a promising affair; however, difficulties arise gradually on the path. Here are a few things that you should be versed with before starting your cafe restaurant: 

Undervalue 

Writing a coffee business plan and implementing it into the practice does not guarantee success. Earning a satisfactory revenue, business continuity and recognition is a long process consisting of strenuous hard work, good decision-making and money-management. By starting a cafe restaurant or small coffee shop in a busy street, you cannot gain success. You need to contemplate on all business matters like a business veteran. 

Besides focusing on serving good-quality coffee to the customers, you also have to put attention on other areas of business such as lightning, raw materials, and accounts. If equal attention is diverted in all business activities, only then you can shore up the coffeehouse. 

Not Following Regulations 

Before getting your business off the ground, you have to register your business under an accountable government body. Following this, you need to ensure that you follow regulations as well as rules or else, you would not be counted as a registered enterprise. In the latter case, the company also cannot avail benefits that registered companies are offered by the government. 

To ascertain what mandates you have to follow, approach government bodies or their website. Become well-versed with the companies that are implemented in the Indian food sector and accordingly, run the business. 

Old Equipment 

While setting up the business, young entrepreneurs religiously follow budgeting. They contemplate investing in old equipment rather than purchasing new ones. However, this decision can ultimately affect the taste of the coffee. Therefore, infuse money in buying updated food equipment.  

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