Launching a profitable Indian fast-food restaurant: an 8-step guide

Want to start your own Indian fast-food business? Good news: the Indian food market in France is booming! According to Statista, it generated 450 million euros in sales in 2020 and has been growing at an annual rate of 6.5% since 2015 (source INSEE). More and more entrepreneurs are succumbing to the spicy flavors and commercial potential of this sector. To help you succeed, Innovorder has put together an 8-step guide.

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Step 1: Set the budget to open a profitable Indian fast-food restaurant

The budget for opening an Indian fast-food restaurant depends on several factors: 

• location,
• room size,
• development,
• equipment,
• marketing,
• initial stock. 

On average, you should expect to pay between €50,000 and €200,000. However, if you want to reduce your initial investment, consider a food truck or a dark kitchenwhich require less capital than a physical restaurant.

👉 To find out more : Budget for opening a fast food outlet: everything you need to know

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Step 2: Understanding the Indian fast-food market in France

Before taking the plunge, it's essential to analyze consumer demand and expectations. What are the most popular dishes? What trends are you following (veggie, street food, gluten-free, halal)? 

Then take the time to identify your future competitors and pinpoint areas where demand is high, but supply limited. The frequency of visits to existing Indian restaurants will help you determine the most strategic location for your brand.

In-depth market research will enable you to better understand consumer habits and adapt your offer accordingly. Finally, it can be useful to conduct surveys or gather opinions on social networks to fine-tune your concept. 

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Step 3: Find the ideal Indian fast-food concept

Your concept needs to be clear and innovative to set your restaurant apart from the competition and differentiate you in the eyes of customers. Here are a few ideas that might catch your eye:

• Cheese naan & naanwich : Sandwiches revisiting naan bread with tasty fillings inside.
• Naan bar : A variety of sweet and savoury filled naans.
• Dosa Bar : Indian pancakes made from lentils and rice, with a variety of fillings.
• Tandoori Wraps : Chapati or roast wraps with spicy fillings.
• Indian street food: typical snacks inspired by Bombay markets.
• Indian bowl : bowls of rice, curry, vegetables and marinated meats.
• Traditional cuisine : emblematic dishes such as butter chicken or biryani.
• Halal option : A relevant strategy for reaching a wide audience.

👉 To find out more: Discover the NBK naanerie concept

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Step 4: Draw up a solid business plan

A well-defined business plan is essential to convince your investors, prepare your project and ensure its feasibility and viability. It should include :

• In-depth market research : analysis of trends and competitive positioning.
• A financial forecast (costs, expenses, income) : Precise costing of your investments and margins.
• A marketing and communications plan : digital strategy, social networks, advertising campaigns.
• A short- and medium-term development strategy : Expansion, diversification of offers, customer loyalty.
• Financing requirements and expected profitability : quantify your needs and determine a break-even point.
• Human resources : Plan for staff recruitment and training needs.

👉 To find out more : The 4 steps to opening a fast-food restaurant

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Step 5: Calculate the profitability of your Indian restaurant

To ensure profitability, calculate your margins by itemizing ingredient costs, fixed expenses (rent, salaries, electricity) and the selling price of your dishes. A good indicator of profitability is a gross margin of at least 65%. 

Remember also to include variable costs, such as consumables and expenses related to day-to-day management (maintenance, logistics, insurance, marketing and communication, supplies, etc.). It's also essential to include an estimate of monthly sales to determine whether fixed costs can be covered on a stable basis throughout the year.

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Step 6: Choose the right legal status and find the ideal location

The choice of legal status has an impact on your tax and social security obligations. The most common in the restaurant business are SAS, SARL or autoentreprise, for a smooth start-up. This choice will also determine your liability in the event of litigation, andyour ability to attract investors or grow rapidly.

Secondly, location is crucial: prefer high-traffic areas such as city centers, office zones or near universities. Your restaurant's accessibility and visibility will play a key role in attracting regular customers. So don't forget to identify nearby parking facilities and take into account ease of access to public transport to maximize your chances of success.

Step 7: Select quality suppliers to launch a profitable Indian fast-food business

The success of a restaurant, whether it's a salad bar, a kebab shop, a sushi bar or a taco stand, is largely due to the freshness and quality of its products. 

It is therefore crucial to find trusted suppliers for :

• Ingredients : spices, fresh vegetables, quality meats. These products must be delivered regularly and meet your requirements in terms of freshness and traceability.

• Current expenses : biodegradable packaging, utensils, furniture. Choose suppliers who respect ecological standards and offer products adapted to your needs, which will reinforce your brand image.

• Professional equipment : tandoori ovens, baking trays, deep fryers. It's essential to opt for reliable, long-lasting equipment, while minimizing maintenance costs. And be sure to check the after-sales service conditions, so you're well looked after in the event of a breakdown.

• Digital solutions : To optimize order taking, inventory management, payments and improve the customer experience, opt for high-performance digital tools tailored to your needs. Talk directly to one of our experts. 

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Step 8: Opt for an effective marketing strategy 

A solid marketing strategy is essential for opening a profitable Indian fast-food restaurant. Here are some effective actions:

• Social networks : Instagram and TikTok to share mouth-watering photos and videos of what's going on in the kitchen. Engaging on these platforms allows you to create a community around your brand and attract loyal customers.

• Google My Business: Improve your local visibility. This will enable you to appear in geolocalized searches and encourage customer reviews, an essential strategic lever for your establishment's reputation .

• Introductory offers : Discounts or free products to attract the first customers. A good introductory offer not only generates traffic, but also encourages word-of-mouth.

• Partnerships with food influencers : Working with local culinary influencers can boost your brand awareness and help you to quickly make a name for yourself with a young, dynamic clientele. Finally, don't forget to create regular promotions or events to maintain customer interest over the long term.

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Opening a profitable Indian fast-food business is no mean feat, we admit, but with good planning and an effective strategy like the one described above, success is within reach. The market is buoyant, and consumers are eager for new culinary experiences. So, are you ready to get started?

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Are you opening an Indian fast-food restaurant? Contact an Innovorder expert for personalized advice!