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What it costs to open a café or restaurant

Design IRL Editorial · Figures checked 7 November 2026 · For first-time café and restaurant owners working out how much money they need · How we make our guides

Interiors are usually the part of a café budget people plan most carefully, and rarely the part that sinks them. The deposit, the licences and the months before the place pays its way are what catch people out.

A word on the numbers

Most published café and restaurant figures in India come from POS and restaurant-software vendor blogs, such as Petpooja. They have useful line items, but they are vendor sources and their numbers do not always add up. We have used them with care. Treat everything here as approximate and get 2–3 quotes for each big item.

Rough totals by size

These bands include fit-out, kitchen, furniture, deposit and working capital, but not a liquor licence. They are rough estimates built from several vendor figures, not sourced numbers. Use them as a sense check.

SizeTier-2 budgetMetro midMetro premium
300 sq ft café or QSR₹8–12 lakh₹15–25 lakh₹30–45 lakh
800 sq ft café or casual dining₹15–25 lakh₹35–55 lakh₹60–90 lakh
1,500 sq ft casual dining or small bar₹30–45 lakh₹60–90 lakh₹1–1.5 crore
3,000 sq ft restaurant or bar₹60–90 lakh₹1.2–1.8 crore₹2–3 crore or more

The fit-out itself, covering civil work, services, interiors and loose furniture, runs about ₹900–1,600 per sq ft for a budget café, ₹1,600–3,000 for a themed café or casual dining, and ₹3,000–6,000 or more for premium, bars and fine dining.

The deposit and the months before you break even

Rent deposits for food outlets range from 2 to 12 months of rent, and metro landlords often ask for 6–12. In two vendor case studies, one in Indore and one in Mumbai, the owners paid 10 months. Rent and deposit also explain most of the difference between cities. The same café can cost 30–50% more or less depending on where it is.

Keep 3–6 months of running costs aside as working capital. Six is safer. In the Indore case the owner's working capital ran out in 11 weeks.

Common overspend

Interiors are where most owners overspend. Fix the interior budget early and protect the deposit and working capital first.

The kitchen and the services behind it

ItemTypical range
Kitchen equipment, 30–50 seats₹4–12 lakh
Espresso machine and grinder₹0.6–15 lakh, depending on grade
Exhaust hood, ducting and fan₹0.3–2.5 lakh; scrubbers extra
Fire suppression over the hood₹0.4–2 lakh
3-phase power upgrade₹0.8–3 lakh
Split ACs for about 800 sq ft₹0.6–2 lakh; central AC adds ₹2–5 lakh
Furniture, per cover₹5,000–20,000
Signage, installed₹500–900 per sq ft of sign
POS and tech₹35,000–1 lakh

If you are in a mall or a residential building, ask early whether you will need a scrubber on the exhaust. A warm shell can also cut fit-out cost by 30–40% compared with a bare shell.

Licences and when to apply

Start all licences 45–60 days before you plan to open.

LicenceFee rangeTime
FSSAI state licence₹2,000–7,500 a year30–45 days
Shop and Establishment₹500–2,0007–15 days
Municipal trade or health licence₹1,000–15,000Varies
Fire NOC₹1,000–20,000 including consultant15–30 days
Music (PPL or IPRS)₹10,000–30,000 a yearVaries

Small outlets may only need basic FSSAI registration, but the turnover limits quoted online conflict, so check on the FSSAI portal. All licences except liquor tend to total ₹35,000–50,000 in a tier-2 city and up to ₹1.5–2 lakh in a metro.

Licence fees change

Licence fees and rules vary by state and change often. The figures here come mostly from agent and software-vendor blogs. Check the current fee and process on the official state or municipal portal before you rely on them.

Liquor licences

A bar licence is a large annual cost and the lead time runs into months. Fees vary by state, change often and depend on seats and location. Verify them with the state excise department before you plan around them.

StateLicenceApproximate annual fee (FY2025-26)
DelhiL-17 restaurant barAbout ₹14.9–36.1 lakh, rising with covers
KarnatakaCL-9 bar and restaurantAbout ₹11.25–12.9 lakh in large cities
MaharashtraFL-IIIAbout ₹5.5–10 lakh in Mumbai
From secondary sources. Check the current state excise notification.

GST and who to hire

Standalone restaurants on the 5% GST scheme cannot claim input credit on anything. Build your budget with GST included, as a real cost. Works contracts for the fit-out are charged at 18%. Confirm your position with a CA.

  • An interior designer for the front of house; design-only fees run ₹50–150 per sq ft.
  • An architect if you are changing structure or the façade; restaurant fees around 10% have been quoted.
  • A kitchen or food-service consultant, ₹25,000–3 lakh per project.
  • A contractor, and an MEP contractor for power, exhaust and AC.

End to end, opening takes 3–12 months. Add 1–2 weeks for a trial run and staff training, and keep a contingency of 5–10%.

Find the people

Sources

Most published cost figures come from firms that sell the work. We give ranges and you should get 2–3 quotes.

  1. Petpooja (POS vendor): cost of opening a café
  2. Petpooja (POS vendor): café licences and FSSAI
  3. Petpooja (POS vendor): liquor licence rules, Delhi vs Maharashtra
  4. DineOpen (restaurant software vendor): cost to open a restaurant 2026
  5. Restroworks (restaurant software vendor): bar opening cost
  6. Restaurant India: low-budget café guide, Aug 2026
  7. Restaurant India: cost of building a restaurant in metros, 2024
  8. Coohom: restaurant kitchen equipment costs
  9. calcguru: Karnataka liquor licence
  10. IndiaMART: commercial kitchen design services

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What it costs to open a café or restaurant - Design IRL