Restaurant Industry in India

The Indian Restaurant Market is one of the fastest-growing in the world. It is expected to reach
INR 5.99 lakh crore by 2022-23, growing at a compounded annual growth rate of 9 percent, as
per the National Restaurant Association of India (NRAI) report. Despite the hardships and
challenges faced by restaurant owners in recent years, opening a restaurant in the near future
would bring a host of new opportunities for budding restaurant owners.

How To Start A Restaurant In India

Considering the opportunity that the Indian F&B industry holds for both future &
existing restaurant businesses, it certainly is the right time to enter into this
lucrative domain.

This step by step guide will solve all your queries on how to open a
restaurant business in India:

● Decide the concept of your restaurant

● Get investment to fund your restaurant business
● Evaluate restaurant costs involved
● Decide the location of your restaurant
● Get all the licenses required to start the restaurant business
● Get the workforce for your restaurant business
● Design a stellar menu
● Arrange vendors and suppliers for your restaurant
● Install the right technology at your restaurant
● Focus on marketing your restaurant
● Host a soft opening

Now that you have garnered the knowledge about the steps that are important
for you to start a restaurant business in India, let’s dive deeper and know what
exactly needs to be done that will help you to open a successful restaurant.
1. Decide The Concept Of Your Restaurant

The first thing to consider while starting a restaurant business is deciding the
idea. You need to keep many things in mind before deciding on a concept, the
major one being the amount of capital you have for investment. The Average
Price per Customer (APC) gives you a fair idea about the average amount of
money a customer would spend in your restaurant.

Once you have decided on the concept, you must ponder the theme and cuisine
of your restaurant. The interiors must be in sync with your restaurant theme.
Next, you should prepare a business plan for your restaurant as it would help
you in planning the future development of your restaurant business, and you
can present it to any potential investor. Learn how you can write a winning
restaurant business plan here.

2. Get Investment To Fund Your Restaurant Business

Most aspiring restaurateurs’ dreams never see the light due to a lack of funds,
and this is one of the most important things to consider when you think of
opening a restaurant business. Firstly, depending on the concept of your
restaurant you must finalize how much capital is required to start a restaurant
in India. When you have the numbers, then you can go about with these three
ways through which you can raise money for your dream restaurant:

1. Self-funding – If you have enough money in the bank, then congrats,

you have crossed the first hurdle of opening a restaurant. It is also a
good idea to open a restaurant in partnerships, as it reduces the risks
of investment.
2. Loan- You can take a loan to fulfill your restaurant dream. However,
securing a loan from a bank may include hassles as they look for
collateral or someone who can underwrite the loan.
3. VC/Angel funding- Getting investors on board can be difficult,
especially if yours is a first-time venture. Investors usually look for
your restaurant venture’s growth potential, quality, and scalability of
your business model. The performance of your first few outlets is taken
into consideration before one agrees to invest in your business.

3. Evaluate All Restaurant Costs Involved

Restaurant costs are a significant part of running a restaurant and need to be

evaluated and planned carefully. Below are the significant costs involved in
starting a restaurant business:

Food Costs- Food cost is the cost of all the raw materials used in preparing a
dish. Ideally, the food cost should be around 30% of your menu price. You
should finalize the vendors for sourcing the raw materials beforehand to ensure
a smooth supply of stock ingredients.

Labor Costs – Labor cost is the second most important restaurant cost that
adds up to the expenditures while opening a restaurant. We have discussed the
manpower you need to start a restaurant in detail, ahead.

Overhead Costs– Overhead costs are the other expenses that are not related
to food or labor. These include:

1. Rent- The rent covers a significant part of your restaurant costs, and
is profoundly affected by the location of the restaurant. However, the
rent should never exceed 10% of your total revenues.
2. Interiors– You can decide on the interiors based on your restaurant
concept and theme, and your budget.
 3. Kitchen equipment- Purchasing the right quality equipment may
seem heavy on the pockets, but they always recover their costs in the
long run. Know about the various types of essential equipment without
which you cannot run a successful restaurant, here.
4. License- Restaurant licenses are an essential expense of your
restaurant, and cannot be ignored. Based on your establishment type,
the license fee varies. We have covered the topic of the restaurant
license in detail below.
5. POS- The new age, modern technology POS can smoothen your
restaurant operations like never before. The price of POS depends on
its features and functionalities, which should be chosen considering
your restaurant needs. We have covered the topic of POS below in
detail.
6. Marketing- You should ideally spend 1-2% of your revenues on
marketing your restaurant. There should be a perfect balance between
offline and online marketing. Word of mouth marketing, along with
digital marketing can do wonders for your restaurant.

4. Decide The Location For Your Restaurant

Location is an essential factor to consider while discussing how to start a

restaurant business, as it can determine the success of your restaurant. When
choosing your restaurant’s location, it is a good idea to identify your competitor
in that area and gauge their progress and understand their business model. The
competition needs to be assessed not just in terms of cuisine, but also the type
of dining experience they are offering to their customers – casual dining, fine
dining, QSR, etc. Evaluating the competition would help you understand the
customer base that hovers in that area, their pocket size, and their preferences.

Other factors to be considered while deciding the location of the

restaurant business in India, are-

1. Visibility and accessibility- The restaurant should be located in a

place that is easily visible as well as accessible. Upper floor locations
are generally not considered suitable as their visibility is low, and
customers also find them difficult to locate. A restaurant right in front
of the road and on the ground floor has higher footfalls.
2. NOC- Before you open your restaurant, you would also need a No
Objection Certificate (NOC) from at least three of your neighbors.

Find out how to choose the perfect location for your restaurant here.
5. Get All Licenses Required To Start A Restaurant Business

You need to acquire licenses from the government to run a restaurant business
in India. The cost of obtaining these licenses varies, depending on the size of
your venture. It is advisable to apply for the permits early, as they may take a
lot of time to get approved. Here is the list of significant licenses required to
open a restaurant business in India:

1. Trade license from the municipal corporation- Depending on the

size of the restaurant, the cost incurred is from Rs 10,000 to 1 lakh.
However, the actual license fee ranges from Rs 5000 to 10,000 for a
small restaurant. The licenses are issued for a financial year and need
to be renewed in March every year.
2. FSSAI-One needs to get a license from the Food Safety and Standards
Authority of India (FSSAI) to operate a food business. The size of your
venture, turnover, installed capacity, location, etc. are factors in
obtaining an FSSAI license and costs around Rs 5000 to 10000. For
more help on FSSAI Registration, you can refer to this guide.
3. GST Registration- Restaurants are required to register under GST
and get their GSTIN Number. GST registration is state-specific, so if
your restaurant has outlets in different states, then you need to have a
separate registration for each state. You can read more about GST
Registration for Restaurants here.
4. Professional Tax license- You need a professional tax license for
employing salaried staff. This is payable on a monthly basis for all
restaurant staff earning above Rs 10,000.
5. Liquor License- Obtaining a liquor license is the trickiest of all and is
also pretty expensive. It is advisable to apply for the liquor license
early, as this permit takes a lot of time as well.
6. Business Registration- You need to register your business as a
partnership firm or a Pvt Ltd company. You’ll need to file annual
returns, audit your finances, etc. Hire a CA to help you with the
economics of your business.

There are a few other licenses required as well such as a fire safety certificate,
pollution control license, etc. Learn more about all the essential licenses
necessary to open a restaurant here.

6. Get Manpower For Your Restaurant Business

Hiring the right talent and retaining them is one of the biggest challenges while
running a restaurant business in India. Hiring through referral is very well
accepted, with existing employees referring to their friends and family. As a
first-time restaurateur, you can hire through the traditional way: set up an
advertisement in the newspaper, put up ‘We’re hiring’ posters, or hire through
agencies. There are also many active groups on Facebook and Linkedin, from
where you can source talent.

There are three types of staff required in a restaurant:

1. Kitchen staff- Your kitchen staff, comprises the cooks, food

preparation staff, support staff, etc. They will mostly be unskilled labor.
2. Service staff- The waiters, housekeeping staff, busboys, etc. are your
service staff. Since they have to interact with customers, they need to
be good at communication and must be trained appropriately.
3. Management staff- Your restaurant’s manager, chef, cashier, store
manager, etc. comprise the management staff, and they need to be
educated as well as experienced.

Hiring the right chef is extremely important for your restaurant as your food is
what’s going to attract your customers. Apart from cooking, your chef also
designs your menu, keeping in mind the ingredients that are readily
available, and train and lead the staff to prepare and present the dish.
Therefore, an experienced chef is a must for your restaurant. Before you start a
restaurant business, you must also remember to train your staff not only
regarding their job but also on how they should serve their customers to deliver
stellar customer service. Find out how to create a Human Resource Structure for
your restaurant here.

7. Design A Stellar Menu

The next step to starting a restaurant is designing a menu. A smartly designed

menu can make a significant impact on your restaurant’s food costs. The menu
should comprise items that can be prepared quickly and use local or readily
available ingredients. It is advisable to serve dishes that use similar ingredients,
which will help you to reduce your overall food cost and the scope of the
generation of waste.

The menu also needs to be designed in a way that lures customers to spend
more. You should decide on the cuisine that you want to serve and choose the
menu items based on the audience’s demands.

Find out how you can create an attractive menu that would boost sales in your
restaurant here.
8. Arrange Suppliers & Vendors For Your Restaurant

A healthy relationship with your supplier and vendor is essential for the smooth
functioning of your restaurant. You must have at least two-three vendors
in each category. This would help compare prices, and will also serve as
a backup in case some problem comes up with one.

You must always have two days worth of stock in your inventory in case of
emergency situations. The items must always be delivered in the morning and
checked every day. Both quality and quantity checks must be done at the
closing time of your restaurant.

It is always preferable to have long-duration contracts with the vendor as it

helps in maintaining the consistency of your raw materials. You also need to
check the Trade Identification Number (TIN) of the vendor before you give him
your restaurant’s supply contract.

9. Marketing and Promotions:

As a restaurant owner, you may be well aware of the transformational power of

hospitality. Building solid client relationships and offering a remarkable dining
experience will make you stand out from competitors. Developing your
restaurant’s marketing strategies is the perfect place to start.

Here are a few ways you can create the perfect marketing strategy for your
restaurant:

● Create a Brand Identity: Brand identity embodies the character of

your company, its voice, and the feelings you wish to arouse in your
audience. Understanding your target audience can help you choose a
theme that will work with all of your personas. You can then
consistently imbibe your brand identity in your marketing
communications to keep your messaging consistent.
● Build a Website: According to a study, 22% of customers say they
wouldn’t go to a restaurant if it didn’t have a website with a menu.
Customers can review what you provide in advance by visiting your
website, which should include a food or drink menu. Include images of
your restaurant as well, preferably taken during a busy night when
both your staff and your guests are having a good time, so potential
customers can get a sense of the vibe.
10. Host A Soft Opening:

Soft openings are a wise option for restaurants because restaurants are always
a work-in-progress, and hosting a soft opening will make you aware of all the
kinks or flaws. Before formally opening your doors and revealing your dishes,
you can test your goods and services on consumers, take their feedback into
account, and make necessary adjustments. It could be a practice run for your
restaurant. You can benefit from it in the following ways:

● Determine demand
● Create a buzz
● Fix all flaws
● Create future income
● Review your menu

To get the most out of the soft opening, focus on getting feedback, improving
your service, and expanding your marketing database.

11. Install Right Technology At Your Restaurant

Restaurant technology is often the most ignored part of running and managing
a restaurant, though perhaps the most important. With new-age modern
technology, the robust POS has come up with a number of integrated
features that have streamlined the restaurant operations to a great
extent. Niche restaurant technology solutions are available for different types
of restaurants.

Read a detailed guide on how to choose the perfect POS for your restaurant
here.

The idea of owning a restaurant is excellent. However, starting a restaurant

from scratch and running it successfully is a humongous task. With this article,
we hope we were able to educate you about how to start a restaurant business
in India. This article will help you open a restaurant with no experience!

Competition Analysis
High competition is one of the biggest challenges of the restaurant
industry. However, the competition can also have a positive impact on
your restaurant business, as it would bring in the customers. Also, if
you do not have any competitor in an area, it may mean that none of
your competitors were able to survive the market there so you should
take a second look at the location before finalizing it for your
restaurant. Still, while opening a new restaurant, you should analyze
the competition in the area in terms of both the present competitors
and the prospective ones. You should identify and include the list of
restaurants with similar concepts as yours in your Restaurant Business
Plan.After you have already identified your competitors, you need to
conduct your research in the following areas:

● The market segment your competitors serve.

● The item which is maximum purchased by the customers.
● What promotion/marketing strategies are being used by the
competitor.
● Serving capacity, operational hours of your competitors.
● The strengths and weaknesses of your competitors.
● The growth rate of your competitors. You can conduct primary
research on these aspects by visiting the places or secondary
research by regularly following the updates on their website,
reviews on their pages, and their other social media profiles.

SWOT Analysis

Doing a SWOT (Strength, Weakness, Opportunity, and Threats) Analysis

must be included in your Restaurant Business Plan as it helps you
identify internal and external factors that would impact the restaurant’s
future. Not only does it warn you regarding what could go wrong and
what your weaknesses are, but it also gives you a detailed insight
regarding your strengths and opportunities so you will be able to use
them better.
a) Strength- Strengths are the strong points of your restaurant that can
drive its growth. They are the reasons your restaurant will be a
success. Strengths are the first thing you analyze while writing a
restaurant business plan. Your strengths can include things like the
USP of your restaurant, competitive pricing, prime location, quick
service, etc.

b) Weakness- Weaknesses are the weak links in your restaurant that

can slow its growth. These are the things that your restaurant is not
good at but they can be worked upon. It is also essential to consider
the weakness of your restaurant so that you may be prepared to tackle
the problems that may arise from them. For instance, as a new
business, your weakness may be an unestablished brand identity or
untrained staff.

c) Opportunity- Opportunities are upcoming trends in the market which

no one has grasped onto yet. If grasped at the right time and invested
in, opportunities can take your business to the next level. Analyze the
gaps in the current market trends and note how you can benefit from
them. For example, as a new concept in the area, you can have a First
Mover Advantage. A viable opportunity can be anything like the
increase in demand for vegan food or even the availability of better
restaurant technology.
d) Threats- Threats can be anything that may pose damage to your
restaurant business. These are external factors that you have no
control over yet they may hamper business. These can range from
anything; from a new restaurant competition to a sudden shortage of
supplies. The best way to deal with threats to your restaurant business
is to prepare how you will tackle them in advance and include it in your
restaurant business plan.

Operations Plan

a) Staff Management

Another significant challenge that you are going to face after you have found
your space, planned the layout and the interiors have been done is finding the
right people to run your restaurant. You should be aware that your restaurant is
a labor-intensive business. Your team is the backbone of your restaurant so
they should be treated with the utmost care. When your restaurant is in profits,
you need to make your team a part of your success so that they also feel a
participated in happiness.

The Restaurant Business Plan should include points such as the number
of employees you would need in each area of operations, such as the
Kitchen and the Service Area. Also include the entire Recruitment
Procedure, Job Descriptions, and the Training Manual.

As a general rule, you will need the following staff

● Kitchen staff: Cooks, assistants, prep staff, pantry, washing staff. For
bars, you will also need bartenders.
● Service staff: Waiters, orders takers, counter staff, delivery staff,
cleaning, housekeeping, security.
● Management staff: Restaurant manager, chef, cashier, storekeeper,
purchase manager.

Spotting the Right Employee

Before writing the business plan, the restaurant owner should decide whether
the staff and team will comprise only localities or migrants from smaller towns
and cities as well. It is always better to include a mixed culture of people
which will not only create a backup during respective festive seasons
but also will bring diversity to the restaurant. No matter who you select,
the employees you hire must match certain standards. Your wait staff must
have good communication skills and a charming personality, your kitchen staff
must be agile and quick on their feet, your manager must not only be a good
employee but a good leader as well.

Training the Staff

To ensure that your staff is up to date with industry standards, you should hold
training sessions regularly related to food preparation, healthy kitchen
practices, smart waste management, approaching the customers with a
professional attitude, handling customers’ reviews and complaints, and so on.
Do not just assume that an employee is supposed to know his/her job.
Create a training manual and train your employees according to it. If
you merely give them a booklet and expect them to learn it and und
implement it on their own, it will lead to a lot of miscommunication in
the team leading to poor customer service and lousy restaurant
performance. Create a Training Plan for your employees and make the hired
employees undergo extensive training before the opening of the restaurant.
b) Customer Service

Deciding upon the kind of service that you would provide in your restaurant is
essential and must be included in the Restaurant Business Plan as it affects the
entire guest experience. You should decide the type of customer service that
you would be provided based on your restaurant format.

● Table d’ hotel (TDH)- A table d’hôte menu in restaurant terminology

can be defined as a menu where multi-course meals with only a few
choices are charged at a fixed total price. Such a menu may be called a
prix fixe or fixed price. The terms set meal and set menu are also
used. The cutlery on the table is already set for all of the courses.
● A la carte- Table d’hôte contrasts with à la carte, where customers
may order any of the separately priced menu items available. À la
carte is an English language loan phrase meaning “according to the
menu”. It refers to food that can be ordered as separate items, rather
than part of a set meal.
● Silver service or Platter to Plate- Silver service is a method of food
service that usually includes serving food at the table. It is a technique
of transferring food from a dish to the guest’s plate from the left. The
waiter does this by using service forks and spoons from the diner’s left.
Plates are cleared from the right, glasses from the right; again by
starting with the guest to the host’s right. Glasses are stacked in a
diagonal to the right and away, with wine (by course) in order and
then water glass.

Financials
While writing the business plan for a restaurant, the most important point to
remember when it comes to finances is to be realistic. You should have a
personal financial statement and balance sheet in place, with the regular cash
flow statement. The owner should be aware of all the cash inflows and
outflows and should carefully keep track of all the money that is
debited and credited in the business accounts. The owner should also
be conservative in the initial days of the restaurant.

It is not necessary that your first-day sales will be replicated and when you are
a new restaurant, money is slow. Apart from that reaching break-even as soon
as possible is important to stay afloat and make profits thus cash should never
be taken for granted. For example, a lot of times the restaurant owners become
too ambitious and they start expecting good revenue from the first day itself
like Rs 10,000 on the first day and in the same proportion on the other days.
This over- assumption may prove to be harmful because there might be an
extreme case when there might not be a single customer in your restaurant so
you should be prepared for it both psychologically and emotionally. Thus,
Financial Analysis is an important part of the Restaurant Business Plan. You
must include the Cash Flow Statement, Revenue Projections, and Cost Analysis
in the Business Plan.

a) Cash Flow Statement

It is the record of where the money is coming from and where it is going. In
other words, it is the mapping of your restaurant. This is one of the important
tools which everybody should spend time on. Not only does it give you a clear
picture of where the money is coming from and where it is going, but it is also
crucial when it comes to planning for your restaurant’s future. To know more
about why you must spend time on your cash flow statement, read The
Importance of a Cash Flow Statement

b) Capital: Where the money is coming from

This part of your restaurant business plan will comprise your financials or your
partner’s financials and how much you are ready to invest. It will also include
contingencies that may come up and funds for the same.

After mentioning how much your capital is and where it is coming from, you
need to allocate funds to operating expenses, fixed expenses, marketing, and
other departments of your restaurant. You will also mention how long you will
support the system and when you expect to break even. Apart from that also
set up a contingency fund for unforeseen events.

c) Expenses: Where the money is going

Capital and Operating Expenses give you the details of where the money is
being spent.

● Capital expenses- Also called Fixed Costs, Capital Expenses are those
expenses that are fixed in nature and are not recurring. These are
long-term investments that you will do in your restaurant, like the cost
of equipment and machinery, cost of utensils, interior designing cost,
tables, chairs, cutlery, crockeries, wall hangings, chandeliers, etc.
● Operating Expenses– These are the costs that you will incur to run
your restaurant. These are recurring costs like salary, depreciation on
equipment, rent, electricity, etc. You need to assume these costs and
the projection has to be made along with the operation team.
● Cost Projection- The Cost projection of the restaurant should be done
for at least 6 months.
● Revenue Projection-Understanding the scope of business is
essential. Now that you have a survey about your localities, you have
your operating team in place, you have your menu and cuisines
decided, you have knowledge of the expenses and, you can then easily
derive the revenue projection. Majorly in revenue projection, you need
to understand the amount of footfall to expect.
● Revenue per person- As per the menu which you have created, you
need to understand and analyze how much per person average you will
be able to earn. Once you know that your APC (revenue per person) is
 X amount, then multiply with the assumed footfall and create the
revenue projection for a daily, monthly, and quarterly basis.
● Statements of Income- As for now, you have your expenses ready
and so is your revenue projection, with these data you can calculate
your gross profit/ Return on Investment/PBT /PBAT. This statement of
income will be your roadmap for opening a restaurant.

It is always better to be a little conservative rather than generous when comes

to revenue projection and more generous in terms of expense statements.

Restaurant Marketing

The F&B space is getting competitive day by day. Therefore, another essential
step while writing a restaurant business plan is marketing. You should have a
clear picture of your market strategy beforehand. Plan out a budget for both
online and offline marketing. For every rupee you earn, a portion should be
dedicated to marketing the restaurant.Always have a visual block-free logo
with a simple design and a simple name. However, the branding of a restaurant
is determined by the country in which the restaurant is located.

a) Restaurant Launch

It is better to go for a soft launch before throwing an official launch party. A soft
launch with your friends and family will give you unadulterated feedback of the
restaurant and you will know what all to improve. At least after a buffer of 3-4
months, go for the official and the hard launch, where you would invite all the
named and famous people of the industry and even outside the industry like
politicians, journalists, food bloggers, and critics. The most common mistake
the restaurateurs make is having a hard launch on the first day of their
restaurant when they do not have a financial backup to provide free
drinks and food to the people coming to the launch. So this buffer period
of 3-4 months will not only give you and your employees the time to be well
versed with handling operations of the restaurant but you will also have enough
cash in hand for a successful launch.

b) Online and Offline Marketing

Plan out your marketing strategy on both online and offline platforms. Through
your marketing strategy, define your restaurant’s specialties and state how your
restaurant will stand apart despite the prevalent competition in the restaurant
space.

Your marketing strategy shall be determined by contemporary market trends.

Smart marketing strategies use elements of all these promotional options to
build a restaurant brand and engage the restaurant’s core customers while
keeping costs manageable. You need to understand how to utilize the various
channels on social media so that you get the maximum ROI from them.

Also, you could use your restaurant POS to create different marketing
campaigns for your restaurant to increase overall sales and grow your brand
name.

i) Online Marketing

● Website: Your website can prove to be the most important channel for
your marketing. You should be able to maintain an attractive,
 informative, and responsive website which will comprise all the
important information about your restaurant. The stronger the
impression that your website makes, the more publicity you’ll get from
media outlets and review sites. List your restaurant website on online
listing & travel websites like TripAdvisor, Zomato, Burrp & more. Also,
do not forget to list your restaurant business on Google. You need to
be discoverable all through the life of your business and Google is
crucial to that. Read more about the importance of a website for your
restaurant here.
● Blog: You can start a blog for your restaurant that will allow you to
promote your restaurant activities. A blog can help you by
strengthening your digital reputation and a better SEO ranking and
ability to build your database for newsletters, digital marketing, and
email campaigns. You can get even more mileage from your blog by
publishing posts by guest authors.
● Social Media Platforms- Having a social media presence for any
restaurant is very important. By adding social media to your marketing
strategy, you can increase awareness about your restaurant amongst
your clientele. You can promote discount coupons, offers, loyalty
programs, and events on Facebook, Instagram & Twitter. Learn the
tips for the social media success of your restaurant here.
● Email Marketing- Email marketing has always been one of the most
reliable forms of marketing for gaining customer loyalty. If you are new
to this, you could also have software for your email marketing. The
restaurants can show their regards to new subscribers with a discount
code for their next visit. Email marketing is especially effective to
nurture customers as opposed to getting new customers.
Your customers should be able to send a direct reply to emails that you
have sent out. It is always advisable to not send an email from a ‘no-
reply’ address. Include these points of email marketing for a restaurant
in your restaurant business plan.

Find out how to do the digital marketing of your restaurant the right way here.

(ii) Offline Marketing

Apart from the online marketing of your restaurants, there are a lot of ideas for
offline marketing for your restaurants.

● Engaging with Food Bloggers

● Hosting Events
● Advertising through signages and billboards
● Distributing pamphlets
● Radio Mentions
 ● Television or Newspaper Advertising

Learn more about Offline Marketing for restaurants here.

(iii) Customer Relationship Management

In today’s century, restaurants are facing unprecedented challenges in all

aspects. One of the challenges is to cater to changing eating preferences and
habits. So in such a scenario, it has become vital for restaurants to analyze and
understand the differences and changes in the customers’ behavior, food
preferences, eating habits, and then look for more opportunities to serve them
better. Before the customers start coming in, you need to ensure how
you will accumulate the customer data and use it to generate more
business. Include the channels through which you will acquire the
customer details in your restaurant business plan, and also the
strategies through which you will engage with your future guests.

You should have software which covers various important aspects. It needs to
integrate easily with the software that you are already using, and that may
indeed require custom CRM development. Your main focus should be on
customer retention and increasing sales growth. Learn how Integrated CRM
increases Customer Loyalty and improves restaurant sales here.
First of all, a CRM system aims to gather information about their
customer to initiate the building of the customer relationship in 4
aspects:

1) The contact details of the customer (Phone number, email, address)

2)The frequency of visits (what time of the week or month they tend to visit)

3) Preferences/ detailed profile of what they usually eat

4) Average Spend per visit.

Using the features of the Loyalty Program

Once your customer registers on your loyalty program, their profile is created.
Then, it becomes easier to track the frequency of the customer’s visits, how
much they spend per visit, what are their preferences. With this, you get an
effective platform to engage and interact with your customers. With a loyalty
program, any restaurant can give its customers advanced access to new dishes,
special discount coupons, or a free meal.

● Real-time updates and personalized recommendations for your

customers.
● You can Reward your loyal customers with a gift, a discount coupon.
Stay in regular touch with your customers through email and text
messages. You can send your customers a birthday/anniversary wish.
● You can give your customers something at the end of the meal with a
sense of gratitude as a surprise.
● Also with the CRM system, after analyzing customers’ history, you will
be able to find out if a particular customer is a vegetarian or a non-
vegetarian. Then, depending on that if a new non-vegetarian dish is
launched, it would be taken into account that the specific email about
that dish does not go to the vegetarian customer. Thus, making the
process of customer relationship building more specific to your valuable
customers will help you in the longer run.
● Interact with your customers on social media platforms. Make them
feel important.