If you are looking forward to opening a cafe nearby your area or at your place, read this till the end to have an average idea to get your answer. I have talked to some of my friends and other people who own cafes near my area to help me write this post.

To open a cafe you must need basic things such as:

  • A land or property.
  • Approval from food department to sell food items.
  • Employees.
  • Furniture.
  • Kitchen Equipments.
  • Serving Items.
  • Crockeries

Let’s see each of them in detail and know how much the actual cost is.

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Investment cost to open a cafe?

open a cafe

To open a cafe, it needs an average investment of 20 – 30 Lakhs INR for tier -1 cities, 10 – 20 lakhs INR for tier -2 cities, and 5 – 8 lakhs INR for tier – 3 cities. However, you can also open a small cafe with an investment of 2 – 3 lakhs if you have your own place.

Land or place to open

For opening a cafe, you first need a property you can own or take as rent. In both cases, you have to spend a considerable amount of money.

The main problem is that running a cafe successfully should be near any crowded place, and land or location near such sites makes it expensive.

Now here is the cost of the property if you buy or rent them according to the tier of cities.

Tier typePrice of property per sq/feetRental price (1500 – 2500 Sq/feet)
Tier-1 cities15,000 – 25,000 INR/per sq feet1.5 lakhs – 5 lakhs INR
Tier-2 cities8,000 – 18,000 INR/per sq feet40,000 – 80,000 INR
Tier-3 cities 2,000 – 9,000 INR/per sq feet 15,000 – 50,000 INR
Information taken from 99acres.com

Note: You must also add 1 – 3 lakhs of security deposit for rental property.

Renovation

Renovation costs include flooring, lighting, interior design, etc. The problem is that the price for this can go as much massive as you want to spend, but if you’re going to open an average cafe for 40-50 persons, it can be between 2 – 3 lakhs.

Food Licensing

Food licensing depends on what type of products and food items you sell in your cafe, but as per the official site of the fssai license cost of coffee houses and cafe is 2000 INR which you have to renew per year. You can check it out from here.

Employees

This also depends on the type of city you live in but as per my experience in my town here is the salary of employees working in a coffee house nearby my area.

Type of workersSalary per person
Manager15,000 INR
Chef12,000 INR
Attender8,000 INR
Waiter8,000 INR
Cleaner7,000 INR
Total50,000 INR
Salaries of employees in the cafe of the tier-3 city

You can comment below if you know the employees’ wages of the town you live in. It will be helpful for us.

Furniture

Usually, most restaurant and cafe owners go for custom-made furniture, but there is an option to buy readymade ones if you don’t have time.

Here is the list of furniture used in most cafes.

  • Tables.
  • Chairs.
  • Bar Stools.
  • Booth seathing.

Average price list of furniture used in cafes.

Furniture typeMinimum Price(Per piece )
Tables8,000 – 10,000 INR
Chairs2,000 – 4,000 INR
Barstools2,000 – 3,000 INR
Booth seating10,000 – 15,000 INR
Doors, windows5,000 – 7,000 INR

The furniture prices can go ow if you buy them in bulk which is about 10%-15% of the costs given in the above table.

Kitchen equipment.

For the opening, a cafe or restaurants you must need to buy commercial utensils and electronic products.

  • Deep freezer and refrigerator
  • Fryer.
  • Oven.
  • Slicer.
  • Coffee maker.
  • Stoves.
  • Sinks etc.

You can see the complete list of kitchen cookware and utensils from here.

The average cost of all these items can go from 2-3 lakhs INR. You can also buy second-hand or used items if you are low on budget.

Can you open a cafe on low budget?

If you are low on budget, you can do two things to open a small cafe on a low budget.

  • The first thing you can do is you instead of buying commercial kitchen utensils you can buy home use kitchen products, rent a small place instead of buying one, limiting the number of employees which will make your expenses less.
  • Other major thing you can do is open a cafe in partnership with anyone you can trust and split the profits with them. Make sure you do all paperwork before opening the cafe as you may not face any future problems.

How much time it will take to make money from your cafe?

open a cafe

To make a profit from the first day, you need to pay attention to marketing and advertising as soon as you open any restaurants.

Most people don’t do it, but you have to keep some money for marketing and advertising. I think 10k – 20k will be an appropriate budget for advertising in a small town. Here I am leaving tier -1 and tier 2 cities because their marketing is too high.

Here’s what you can do to advertise your cafe.

  • You can approch famous instagram and facebook pages to promote you cafe for free or paying them some amount of money.
  • Next thing is listing your place of google my bussiness to make it live on google maps.
  • Giving newspaper ads about your cafe.
  • If possible you can give advertising on hordings and banners but don’t invest much on it.

Manish Pandey

My name is Manish Pandey; I am a full-time blogger at degreesetup.com. Here on This site, you will learn about content related to education and guides for students to make their lives easier!

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