Cost to open a café or restaurant in India (2026)
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
Opening an 800 sq ft café costs about ₹35–55 lakh at a metro mid-range spec, or ₹15–25 lakh in a tier-2 city, including fit-out, kitchen, deposit and working capital. Interiors are rarely what sinks a café: the deposit, the licences and the months before it pays its way 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.
| Size | Tier-2 budget | Metro mid | Metro 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
| Item | Typical 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.
| Licence | Fee range | Time |
|---|---|---|
| FSSAI state licence | ₹2,000–7,500 a year | 30–45 days |
| Shop and Establishment | ₹500–2,000 | 7–15 days |
| Municipal trade or health licence | ₹1,000–15,000 | Varies |
| Fire NOC | ₹1,000–20,000 including consultant | 15–30 days |
| Music (PPL or IPRS) | ₹10,000–30,000 a year | Varies |
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.
| State | Licence | Approximate annual fee (FY2025-26) |
|---|---|---|
| Delhi | L-17 restaurant bar | About ₹14.9–36.1 lakh, rising with covers |
| Karnataka | CL-9 bar and restaurant | About ₹11.25–12.9 lakh in large cities |
| Maharashtra | FL-III | About ₹5.5–10 lakh in Mumbai |
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%.
Common questions
How much does it cost to open a café in India?
Rough estimates for a 300 sq ft café are ₹8–12 lakh in a tier-2 city, ₹15–25 lakh for a metro mid-range café and ₹30–45 lakh for metro premium. For 800 sq ft, the bands are ₹15–25 lakh, ₹35–55 lakh and ₹60–90 lakh, including fit-out, kitchen, furniture, deposit and working capital but not a liquor licence.
What is the interior fit-out cost per sq ft for a café?
A café fit-out, 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.
What licences do I need to open a café and how much do they cost?
A café typically needs an FSSAI licence, Shop and Establishment registration, a municipal trade or health licence, a fire NOC and a music licence. All except liquor tend to total ₹35,000–50,000 in a tier-2 city and up to ₹1.5–2 lakh in a metro. Start them 45–60 days before opening.
How much working capital do I need for a new café?
Keep 3–6 months of running costs aside as working capital; six is safer. In one Indore vendor case study, the café owner's working capital ran out in 11 weeks.
How much does a bar licence cost in India?
Approximate annual fees for FY2025-26 are about ₹14.9–36.1 lakh for a Delhi L-17 restaurant bar, ₹11.25–12.9 lakh for a Karnataka CL-9 in large cities and ₹5.5–10 lakh for a Maharashtra FL-III in Mumbai. Verify with the state excise department.
How long does it take to open a restaurant in India?
Opening a café or restaurant takes 3–12 months end to end, plus 1–2 weeks for a trial run and staff training.
Find the people
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Sources
Most published cost figures come from firms that sell the work. We give ranges and you should get 2–3 quotes.
- Petpooja (POS vendor): cost of opening a café
- Petpooja (POS vendor): café licences and FSSAI
- Petpooja (POS vendor): liquor licence rules, Delhi vs Maharashtra
- DineOpen (restaurant software vendor): cost to open a restaurant 2026
- Restroworks (restaurant software vendor): bar opening cost
- Restaurant India: low-budget café guide, Aug 2026
- Restaurant India: cost of building a restaurant in metros, 2024
- Coohom: restaurant kitchen equipment costs
- calcguru: Karnataka liquor licence
- IndiaMART: commercial kitchen design services