How to Open a Restaurant in Bangladesh? 10 Easiest Plans

You know what, how to open a restaurant in Bangladesh? Opening a restaurant business requires some essential steps, such as restaurant type, place selection, amount of investment, business license, and others. Besides those things, a sharp calculation of the restaurant expenses, such as running costs, fixed costs, or overall restaurant costs, is needed. There are also some other things that you must know before opening restaurants in Dhaka Bangladesh or anywhere else in Bangladesh. So, here we go.

How to Open a Restaurant in Bangladesh?

The restaurant business is renowned in Bangladesh. Bangladeshi people are highly interested in enjoying their favorite deals. Indeed, urban people are interested in enjoying food (local and traditional food). However, opening a restaurant is not more challenging in Bangladesh. An entrepreneur can easily take steps to open a restaurant in Bangladesh. 

Most entrepreneurs find the easiest way to open a restaurant business. How to start a food business in Bangladesh? A restaurant business entrepreneur meets some essential and common requirements to execute their plan, such as:

• Decide A Type Of Restaurant Business.
• Make A Restaurant Business Plan.
• Select A Location.
• Restaurant Startup Cost.
• Restaurant Marketing Cost
• Restaurant Management System.
• Restaurant License.
• Food Safety Certificate.
• Food Serving License.
• Fire Safety Certificate.

1. Decide a Type of Restaurant Business

Selecting a type of restaurant is important. The decision always plays a crucial role in a final destination. There are different types of restaurant businesses, such as fast casual dining restaurants, fine dining, café, food trucks, commercial restaurants, etc. 

So, think first about which restaurant you prefer. After choosing a restaurant type, you may proceed to the next steps: choosing a location, investment, restaurant decoration, recruiting restaurant staff, restaurant management software, and others. So, choose your restaurant then go for further operation by smart planning.    

2. Make a Restaurant Business Plan

Making a road map or journey map with smart calculation or sharp thinking before starting a business is called a business plan. The restaurant business is challenging because it is easy to set up and profitable. For this reason, I am keeping planning at the top of my list here. In most cases, those who are entrepreneurs have some common questions, such as

• From where should I start?
• What will the cost be?
• Where will the restaurant be better?
• How should the decoration of the restaurant be?
• How to earn more?
• What item should I keep on the menu?
• How much should I spend at the beginning level?

That’s why before starting a restaurant you must think about those and make a smart calculation and master plan. In that case, you may get help from some experienced person who has been working in this field for a long time. You should also judge the current market status to know about the investment and trend of the restaurant item.

3. Select a Location.

Location is another essential term for setting up a restaurant. In that case, you must choose a location that goes better with your business. A restaurant business relies on the customer presence. So, you should choose a location in a populous area like a market, any resort, any park, beside a shopping mall, any local market, and others. So, find the location and potential customer where you can get customer presence.

For example, if you have a food truck business then you should choose an adjacent place or in front of a school, college, university, park, zoo, playground, and beside a corporate area. On the other hand, if you have a commercial restaurant then it will be better to set up in a crowded area. So, conduct a visual inspection and find the best place to journey your restaurant business.        

4. Restaurant Startup Cost.

Restaurant startup cost in Bangladesh depends on some factors: location (city or outskirts of the city), space of a restaurant, restaurant type, restaurant decoration, etc. For a small restaurant, an average restaurant startup cost in Bangladesh is around 20 lakh to 25 lakh. This is a small restaurant's overall startup cost. You may invest this amount for renting location, decoration, furniture, restaurant equipment, utility costs, staff costs, and others.

On the other hand, if you have a food truck business then you may invest 7 lakh to 10 lakh. This amount will also cover truck or vehicle rent or purchasing, food serving equipment, ingredient costs, etc. It is noted that this amount can fluctuate depending on several factors. So, observe and justify the recent situation and invest according to your efficiency or eligibility. 

5. Marketing Cost

As an entrepreneur, you should spend an amount for your newly built restaurant marketing and brand awareness. This amount varies depending on your requirements. You may use some digital marketing platforms: Facebook marketing for restaurants, X.com (Twitter), LinkedIn, Instagram, etc. According to a Bangladesh perspective, Facebook is more popular.

At the beginning stage, you may keep a budget of around 5000 BDT to 7000 BDT per month for Facebook ads. In that case, different types of ads can be used like image ads, video ads, carousel ads, etc. It is noted that if you have no idea how to show ads on Facebook then hire a digital marketing specialist. In that case, you have to pay him according to your discussion. However, whatever you do, keep a monthly budget for your newly built restaurant promotion or marketing purpose.  

On the other hand, you may apply Google My Business (GMB) strategy for local popularity. Google My Business (GMB) is a free online product of Google. It allows you to create your business profile and website on places like Google Search and Maps. 

This will show your restaurant location in different locations in Bangladesh. This is a good restaurant marketing strategy to get more people. What kinds of food service do you offer (food delivery, dine-in) you must use this business tool.

6. Restaurant Management System

Indeed, the restaurant management system is a POS system. The POS system is used for billing purposes. Nowadays most software providers have designed it as customizable and cloud-based restaurant software. For this reason, any module can be added to this POS system such as

• Multiple billing systems.
• Restaurant inventory management system.
• CRM system.
• Supply management.
• Online ordering system.
• Kitchen app.
• Waiter app.
• Website integration system.
• Online and offline management.
• Multiple language setup.

Many other modules or add-ons can be added to manage an entire restaurant task with automation. That’s why this system is called a restaurant management system. Nowadays, the best restaurant management system is highly necessary. 

This system enables the above facilities and reduces the restaurant's overall staff cost. It also reduces customer hassle, grows more efficiency, and enhances better management reputation also.  So, you can realize how important this restaurant software is.

It is noted that this restaurant software cost is not very high. Many software providers offer this software with different packages. It may be on a monthly and yearly basis. So, check the pricing and choose the best restaurant POS system for your restaurant startup.  

7. Restaurant license

A license is an essential document that allows one to set up a business in a legal way. A few licenses are required to start a restaurant business. Trade license, environmental clearance, food safety, fire safety, and premises license. 

In many countries, different agencies are responsible for all the necessary licenses for a restaurant business. However, there is no such thing institutionally in Bangladesh. Indeed, there are three types of licenses or documents you need to start a restaurant business in Bangladesh:

• Trade license.
• VAT registration certificate (Value Added Tax).
• Taxpayer identification numbers (TIN Certificate)

A trade license is a business permit document, you must require this license before commencing any business. If you would like to run any business then you have to pay Tax to the government depending on your monthly and yearly income. If you become a Taxpayer then you must provide a TIN certificate.

According to the Bangladesh Hotel and Restaurant Rules, a restaurant license will be valid for three years. After three years the license must be renewed and it is renewable. So, manage these business permission certificates and run your restaurant business in a legal way.

8. Food Safety Certificate

The importance of food safety is immeasurable in the food serving platform. A Food safety certificate is another crucial part of a food business. It is a valid document to serve food.  Bangladesh Food Safety Authority (BFSA) is an autonomous national food safety regulatory agency.  This certificate is a crucial thing for food serving. This certificate is a validation that you are maintaining all the hygienic things and not serving non-hygienic food.       

 In the case of Bangladesh, BFSA is the primary regulatory body overseeing food safety and hygiene practices across the country. The certification process involves training and assessment of food-serving businesses. It means that you are adhering to the best practices in food preparation, storage, and handling. This certification helps mitigate the risk of foodborne illnesses and increase consumer trust.

9. Food Serving License 

In Bangladesh, a food service license is a mandatory permit issued by the local health authority. Food service license allows a business to legally prepare, serve, and sell food to the people. This license ensures that you are following all the necessary hygiene and safety standards to prevent foodborne illnesses. 

After applying for this license a special investigation is conducted on the restaurant to check for cleanliness, proper food storage, and safe handling practices. Obtaining this license is crucial for restaurants, cafes, food stalls, and other food-related businesses.

10. Fire Safety Certificate

Large (150 to 400 seats) and medium-sized (70 to 150 seats) restaurants must have a fire safety plan. Indeed they arrange a large amount of food and beverage. They use many kinds of substances like gas, oil, and other flammable and non-flammable materials. Fire hazard in a restaurant is a common event.

In that case, they must have a fire evacuation plan. This fire safety plan is also required for small restaurants and coffee shops as well. This fire evacuation plan will lead you to be more conscious and restrain from fire hazards. So, what kind of business do you have, try to be conscious and follow all the restaurant fire safety issues at all.   

How Much Money Do I Need To Start A Restaurant Business In Bangladesh?

The average cost to open a small restaurant in Bangladesh is around 20 to 25 lakhs BDT including monthly electricity bills and rent of a place. On the other hand, 30 to 40 lakhs BDT is required to open a medium range of restaurants. But this amount will depend on the type of restaurant, location, space of a restaurant, number of employees’ salaries and wages, restaurant furniture, monthly rent, food serving equipment, etc.

Relying on such things restaurant startup costs may be different (more or less). The best way is to get the actual investment idea, visit a recently built restaurant, consult with the restaurant owner, and get an idea of the restaurant startup cost.   

Restaurant Law in Bangladesh

Indeed, Bangladesh established a law about hotels and restaurants in 2014. This rule will be applicable for such hotels that offer at least 10 rooms with other facilities. Therefore those restaurants serve food to more than 60 people. Under the new law, the hotel and restaurant business is illegal without registration and license. However, there are various laws for restaurants and hotels. Let’s see a few of them.

• A restaurant must have a trade license.
• Must follow the Bangladesh Food Safety Act, which is governed by (BFSA).
• The restaurant building has been built by complying with fire safety regulations.
• Ensure sanitary conditions in a restaurant.
• Restaurant food control amendment.

Hotel and Restaurant Job in Bangladesh

A large number of luxury hotels and restaurants are in Dhaka, Bangladesh. They offer different types of job categories for the people. There are plenty of job vacancies in hotels and restaurants as well. A Skilled person is recruited for such positions. 

But what requirement is required to get a hotel job? Those are three-star, four-star, and five-star hotels, such a hotel expects that an applicant must have a bachelor's degree in Hotel Management & Tourism (BHMT). They also offer some other degree holders.

For the medium and large scale restaurant, the restaurant job in Bangladesh is fair but there is no higher educational limitation. In that case, a skilled person gets preference. The restaurant managers require higher education and experience as well. Besides the academic qualification, a restaurant manager must have better communication and restaurant management skills.     

FAQ

Is the Restaurant Business Profitable In Bangladesh?

Yes of course, in terms of popularity, the restaurant business is famous in Bangladesh. The restaurant business has massive potential to grow earlier due to foodie people. All the classes of people like to eat food in a restaurant. Bangladeshi people like Italian food, Indian food, Thai food, Chinese food, and others. 

Many restaurant owners have made a restaurant according to the country name like Italian restaurant, Thai restaurant, Chinese restaurant (Xindian Restaurant), as well. So, these things prove how popular the restaurant business is in Bangladesh.

What Documents Are Required To Open A Restaurant?

Different types of documents are required to open a restaurant. I have mentioned above what kind of documents are required to open a restaurant in detail. However, here are some essential documents that you must require to open a restaurant in Bangladesh.

• Trade license.
• TIN and BIN certificate.
• Food serving license.
• Fire safety license.
• Deed of agreement (if the place is rented).
• No objection certificate from the local authority.

May I Open a Restaurant in Bangladesh Online?

Of course, you can open a restaurant to provide online food service. If you want to serve food online then this food serving method will be the best way. Low cost with a large profit. You don’t need to have a permanent restaurant, no rent, no furniture cost, and no need to recruit more staff. 

For managing your online food serving business, you may use the best restaurant management system that contains easy online orders, online food delivery, an easy payment gateway, and a website integration system.

Final Thought

Opening a restaurant depends on some essential factors and the type of restaurants that I have referred to above. I have referred to some crucial steps of how to open a restaurant in Bangladesh, required documents, cost, marketing strategy, and others. So, explore your idea, make a decision, and begin a restaurant business.