Around 60% of new restaurants in India close within the first year, and under-capitalisation is a leading killer: the fit-out gets funded, then licenses, deposits and three months of losses arrive uninvited. This estimator itemises the real startup bill, fit-out by format and area, kitchen equipment, licenses, rent deposit and the working capital runway most first-timers forget to raise.
Opening cost = fit-out (₹1,200-4,500 per sq ft by format) + kitchen equipment + licenses (₹50,000-2.5 lakh) + rent deposit (typically 6 months) + opening stock + working capital (plan 3-4 months of fixed costs). A metro cloud kitchen runs roughly ₹8-15 lakh all-in; a casual-dining restaurant ₹40 lakh to ₹1.5 crore+.
| Format | casual |
| City tier | metro |
| Carpet area | 1200 sq ft |
| Expected monthly rent | 150000 ₹ |
| Deposit | 6 months |
| Working capital runway | 3 months |
Common 2026 planning bands: cloud kitchen ₹1,200-1,800/sq ft (bare functionality), QSR ₹1,800-2,800, café ₹2,200-3,200, casual dining ₹2,500-3,800, fine dining ₹3,500-6,000+. Tier-2/3 cities run 15-30% cheaper on labour-heavy work but similar on equipment, which travels at one price.
Working capital, by a distance. Most new outlets lose money for 3-6 months while covers ramp, and the money to survive that valley must exist on day one. Second most forgotten: the gap between equipment delivery and gas/exhaust commissioning, during which rent runs and revenue doesn't.
For a non-alcohol restaurant: FSSAI (₹2,000-7,500/yr), GST registration, trade license, fire NOC, signage and music licenses typically total ₹50,000-1.5 lakh including professional fees. A liquor license changes the equation entirely, in some states it exceeds the whole kitchen budget, and is deliberately excluded here.
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