A Complete Guide to Why You Should Invest in a Restaurant Business

Sankalp Restaurant

According to the population clock, over 7.5 billion people are thought to inhabit the earth. India will reach 1.4 billion people, with almost 50% of its population living above the poverty line and enjoying eating out off and on, as per their individual family budgets. Each one of these people in the population, which is always expanding and changing, is a prospective client for a restaurant business that you may be investing in.

Food isn’t a niche industry, despite the fact that some restaurants may have themes or specialise in specific diets. But in order to survive, everyone must eat. Because people will certainly need to eat and won’t want to prepare meals at home always. Thus if you invest in restaurant business, it is nearly a surefire way to make money.

Now let’s get into the deeper details of opening a restaurant without owning a restaurant. How does that happen? ‘What to Know before Investing in a Restaurant.’ We will discuss this step-by-step in a very detailed manner so that you don’t falter anywhere. 

Why must you be investing in a restaurant business?

The reasons of why you must be opening a restaurant business are quite simple yet intriguing.


1. Profit Margin

In the restaurant industry, it is usually preferable to form a partnership since it simplifies the investment process and lowers business risks by dividing potential profit and loss. If this is your first restaurant endeavour, rather than owning a restaurant, attempt to find a partner who has some prior food industry expertise.


2. Low Budget, Low Risk Investment

The majority of people enjoy eating, but others don’t have the time to make meals, so they visit restaurants or fast food outlets to buy and consume food. No wonder that  the restaurant industry is less prone to bankruptcy.  When you invest in restaurant business as a franchise, you actually invest in a decentralised proposition that is very low at risk of sinking.


3. Be Your Own Boss

You may give your restaurant manager a lot of duties once you can afford to do so and you can see that business is booming. When you invest in restaurant business, you may not be fully off the obligations, yet you’ll still have some spare time with your family. But to do that, you must initially devote all of your focus to your business. You must prepare to have fun once your business takes off.


4. Get Incentives

If you keep your restaurant in top shape, you may earn a lot of money. Rewards keep everyone content. Paying your employees well might help you keep them around for a longer period of time. You receive the knowledge and experience of your effective employees in exchange.


5. A Burgeoning Industry 

The restaurant sector is quite large. It also aids in the survival of other industries. The restaurant business also benefits from an established infrastructure. Its system has been built since the beginning and keeps 


6. Stability is Higher in Food Sector

Despite the COVID19 pandemic, the two sectors that flourished beyond the norms, were agriculture and the food sector. Because food is a basic need, people ordered food online, when they could not go out. Thus, despite ups and downs in any economy, investing in a restaurant business is the best idea in current times. 


7. Steady Growth

Franchises and chains have excellent expansion potential, at minimal risk when you decide to invest in restaurant business.


What to Know Before Investing in a Restaurant Business?

Sankalp Restaurant Pittsburgh

Make sure you read this section before opening a restaurant, prior to the time you sit down, sign any documents, or give the restaurant chain any money. It is jam-packed with details that will enable you to make wise financial decisions.


1. Be Clear on Your ROI

As per our accounting experts, any restaurant owner must know their anticipated cash flow in order to calculate their rate of return. For opening a restaurant and running it on profitits, the rate of return (ROI) for a computation over 10 years must be at least 20%. If not, you should not invest in the restaurant because it is not lucrative enough. Don’t go through with this transaction.


2. Understand the Restaurant’s Occupancy Costs

The occupancy cost is another statistic that may show if a restaurant business is a wise investment. Occupancy expenses, as the name implies, cover all aspects of leasing or buying a building. These expenses, in addition to rent or a mortgage, also include depreciation, building insurance, private property taxes, and real estate taxes. In ideal circumstances, a restaurant’s occupancy expenses should not exceed 10% of its total revenues.


3. Look at Cash Flow Projections

Before opening a restaurant, you must always request to study the restaurant’s business plan in place of cash flow estimates. You may learn what the restaurant is actively spending money on through the business plan, including any active vendor agreements. Additionally, you may find out the restaurant’s future plans and its objectives for continuous growth.


Why Choose the Sankalp Group for Investing in a Restaurant Franchise?

Sankalp Restaurant Pittsburgh_1

The world, so the saying goes, must make room for the guy who has his eye on the prize. Dr. Kailash Goenka, a visionary, formed the Sankalp Group in 1980. On Ashram Road in Ahmedabad, he opened the first restaurant business under the company’s name. What follows is history. 


The cuisine and ambiance at Sankalp Restaurants are unparalleled. The ethnic table settings, authentically prepared food, and excellent service all contribute to this restaurant chain’s USP. By partnering with the Sankalp Group, we not only boost your sales and earnings but also play a significant role in the employment sector by giving hundreds of people access to daily food. Isn’t that a wonderful sensation towards investing in restaurant chain owned by us? In addition, we provide you an edge above others by lending you:


1. Brand Identity

Along with the Sankalp Group’s brand image, at opening a restaurant, you also get the required reputation and dependability.

2. Publicity & Advertising

We support you by making recommendations for public, media, and social media engagement and by offering you sound guidance on an advertising plan that will benefit both parties.

3. Software & Backup

In addition to guaranteeing the seamless operation of the restaurant—its invoicing, its delivery, etc.—we also have an AI-integrated software system with superior backup and cyber security that keeps client data secure across the world.

4. Installer Team

There are benefits to setting up a restaurant with Sankalp Group, including the fact that we send out a team of installers to set up the whole establishment, from the restaurant to the kitchen to the table tops.

5. Recruitment & Training

In order to help you develop with us by having a thorough understanding of the trade, we not only educate your team in the newest skills but also provide marketing support, enabling you to thrive in this rapidly expanding industry.

6. Operating Guidelines

We provide you with operating guidelines and rules for managing the business effectively at part with owning a restaurant. The Group provides its franchises with a clear, tested business model, a system of operation and management, as well as expertise in product, service, and marketing. In addition, we offer managerial support with regard to, among other things, accounting practices, facilities and staff administration, and merchandising and promotion.

7. Site Selection

There are more than 150 locations of the specialty restaurant brand The Sankalp Group worldwide. Additionally, it has a number of initiatives in the works. As a result, whatever initial expenditure or investment a franchisee makes will be supported by a substantial body of prior field research as to where you must set up your franchise and why, to ensure maximum profits and a win-win situation for the franchise partner as well as the Sankalp Group.

8. Vendor Support

Not only do we offer various forms of vendor assistance throughout the project stage, but we do so even after the restaurant is up and running. For instance, to preserve consistency of flavour, products or raw materials are provided by a vendor or production unit that has an export focus, giving the consumers a typical recipe throughout the globe.

9. Visiting Experts

Each franchisee receives assistance from a specialised staff to ensure quality, operational, and cost-related support as needed. Periodic visits by our highly trained and skilled restaurant professionals are a regular feature in order to maintain, update, and improve operational standards

10. Quality Check

The Sankalp Group conducts a quality check team audit and a monthly check on Standard Recipe and Standard Portion Size. We adhere to crucial requirements and have strict quality control. Sankalp is now a Brand you can trust as a result of this.

The Final Trigger

The Franchise Bazar predicts that the Food Franchise India business will multiply back to pre-pandemic levels and provide excellent profits. So rather than owning a restaurant and having to face multiple issues alone, let’s join hands! Please contact us to work together.