How to Start a Restaurant business with less than 150,000

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Eateries are becoming a second home to the new generation.

They contribute a lot to the economy of this country

Guests who walk into Kenyan restaurants have high expectations of the service and food offered since they look for value for their money.

You must understand that you can make huge margins in your business by just putting a smile on your customers’ faces and by serving quality, fresh, and friendly means. This will encourage repeats clients on your doorstep.

The idea of starting this business should not revolve majorly on the capital but rather the desire to run the business and make it grow.

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The best location for a restaurant business in Kenya.

Finding a suitable business location is the most tedious job in setting up a restaurant business. The capacity of your business at this stage shouldn’t be a factor.

But it will really help if you find a location near schools, hospitals, recreational grounds or any place with high footfall.

These factors alone are enough to ensure you run a successful restaurant.

REQUIREMENTS FOR THE BUSINESS.

  1. Equipment

The most important of all requirements after finding a space/location is the equipment you’ll use to produce your meals.

In addition to the equipment, you must ensure that your raw materials are easily available and assembled before you open your doors.

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This helps in preparation and to ensure that nothing misses in your menu. Not at least what you plan to sell.

     2. Relevant licensing

  • If you will not be playing music in your restaurant then what really you will need is a food and safety control certificate/ license;
  • County Council Single Business Permit –  5,000 –  35,000 per year depending on the region
  • And the fire Clearance Certificate – this will be required if you intend to set up your restaurant business in any County

     3. Seats.

Since the small restaurant businesses rely majorly on takeouts, you won’t need so much space for a sitting but rather you will need a waiting bay.

With this in mind, build a rather simple waiting bay for your guest and cut costs on other sophistication.

   4. Assemble all the equipment’s required e.g.

 For this type of business, you don’t need expensive machines for a start. If anything, you’ll only need a

  • Fryer- medium-sized fryer that goes for – Ksh.  36,000
  • Flender-medium commercial use going for Ksh. 6500
  • Potato chipper going for Ksh. 5000.
  • 30kg gas cylinder at going for Ksh. 10,000
  • And a coffee-maker going for Ksh. 10,000

     5. Decide on the pricing

You can come up with a simple pricing plan by doing a pricing survey on the existing restaurants near you.

An alternative to using existing prices would be to add value to your meals and come up with new prices. Of course, considering your clientele, your costs, and the value provided by the new recipe.

     6. Marketing the business.

Do your marketing through word of mouth, social media, and/or include delivery to offices to distinguish your restaurant from other restaurants.

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Pick and drop your orders on time to create a good rapport with the customers

Last remember always to serve fresh and quality

How much capital is needed to start the fast-food restaurant business

All costs included, you’ll need Ksh. 110,000 to Ksh. 130,000 for a start. Give or take.

How much profit is expected in the business 

All factors held constant, this kind of business should earn you something between Ksh. 100,000 and Ksh. 150,000 per month. 

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