Cost of opening a restaurant in India: a 2026 INR breakdown

Opening a restaurant in India costs roughly Rs 5–15 lakh for a small Tier-2 outlet and Rs 15–50 lakh or more for a mid-size dine-in in a metro. The biggest line items are the rent deposit, interiors, kitchen equipment and working capital — licences are a small share. This guide breaks the cost down line by line in rupees, with a worked example for a Tier-2 and a metro restaurant, plus the monthly running costs most first-timers underestimate.

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The one-time cost of opening a restaurant

Here is the line-by-line setup cost. Ranges are indicative and vary by city, size and finish.

A liquor licence, if you serve alcohol, sits on top and can be large — from around Rs 25,000 in Goa to several lakh (even tens of lakh) in big metros. See all licence costs.

What drives the number up or down

• City tier. A metro high street can cost 3–5x a Tier-2 locality on rent and deposit alone.
• Format. A takeaway counter or cloud kitchen needs no dine-in interiors, cutting the biggest variable cost.
• Seats. More covers means more furniture, a bigger kitchen and more staff.
• Finish level. "Instagrammable" premium interiors can double the fit-out bill.
• New vs used equipment. Good used kitchen gear can save lakhs.
• Liquor. Serving alcohol can be the single largest licence cost in some states.

Worked example 1: small restaurant in a Tier-2 city

A 30-seat casual dine-in in a Tier-2 city, modest interiors, no liquor:

That is firmly inside the Rs 5–15 lakh small-restaurant band.

Worked example 2: mid-size restaurant in a metro

A 50-seat dine-in on a metro high street, good interiors, no liquor:

Add a liquor licence and the number can rise by several lakh or more, depending on the state.

The monthly running cost people forget

Opening cost is only half the story. Budget for these every month:

Shares are typical guides, not fixed rules. Note how delivery-app commission dwarfs almost every other line — a single order on an aggregator can cost you more than your rent share. Compare the real rates on Zomato and Swiggy.

Where licences fit in the budget

Licences feel intimidating but are a small slice of the setup cost:

From 1 April 2026, FSSAI licences are perpetual — you pay an annual fee, not a renewal. Full detail in the FSSAI licence guide.

How to open a restaurant for less money

• Start smaller. A takeaway counter or cloud kitchen skips the costliest line (dine-in interiors).
• Pick a lower tier or locality. Rent and deposit fall sharply off the prime high street.
• Buy used equipment in good condition.
• Keep the menu tight to cut stock, wastage and kitchen size.
• Take direct orders from day one. Every order on your own online ordering page is a 20–30% commission you keep — see the payback point below.

Direct ordering shortens your payback

The fastest way to recover your investment is to protect your margin on every order. If a chunk of your sales goes through delivery aggregators at 20–30% commission, that money never reaches your break-even.

With Menuthere you can take orders on your own ordering page, QR menu and WhatsApp with 0% commission; UPI, Razorpay and Cashfree payments go to your own account. You can start on the Free plan (no card needed), so your online ordering costs nothing while you build volume, and move to a paid plan when you scale. Want your own app on the Play Store and App Store? That's the Branded App plan.

keep the commission you'd lose to apps.

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