Opening an Indian Restaurant in America (Costs, Equipment, and More)

Starting a business from scratch in the USA as a foreigner

Co-authored by Luke Smith, MFA

Last Updated: February 18, 2023 References

Getting Visas, Permits, and Loans

|

Opening the Restaurant

|

Running Your Restaurant

|

Tips

With a little time, money, and elbow grease, opening an Indian restaurant in the U.S. is the perfect way to share your heritage and make a living doing it. But where do you begin? How do you navigate the paperwork, the legal system, and the business world? There’s a lot to know, but many have found success in the restaurant industry, and you can, too. We’ll help! We’ll give you a complete overview on getting visas and other permits, putting together your restaurant, and making sure it operates successfully. Get those recipes ready, because you’re on your way to becoming a restaurateur!

Things You Should Know

Apply for a worker’s visa if you’re not a citizen, and hire an attorney to help you obtain the necessary business permits and loans.
Determine your restaurant's format (brick-and-mortar, food truck, etc), theme, and name to establish a unique and striking identity.
Lease or purchase a location with plenty of foot traffic, and purchase the necessary equipment, like stoves, refrigerators, and furniture.
Hire cooks, waitstaff, and managers, and promote your restaurant online and in newspapers and sidewalk signs to get the word out.

Part 1

Part 1 of 3:

Getting Visas, Permits, and Loans

1
Apply for a visa if you plan to work within the U.S. In order to open a business in the U.S., you’ll need to be documented. Apply for a work visa like an International Entrepreneur Parole, or a temporary or permanent worker visa.^{[1]
X
Trustworthy Source
US Citizenship and Immigration Services
U.S. government agency in charge of the naturalization and immigration systems
Go to source} There are a number of different visas, and one may be more suited than another to your specific situation, so talk to your local Immigration Office to discuss which is right for you.
- The most common types of visas obtained by foreign workers are the H-1B, L-1A and L1-B, and the E-1 and E-2.
- Note that a visa isn’t necessary if you simply plan to own the business from abroad. If you do wish to work within the restaurant on a day-to-day basis, however, you will need a visa.
- Also note that many visas allow investment in a business, or opening a branch of a business from abroad, but fewer actually permit opening and working in your own restaurant. Which is to say, even if you don’t get the optimal visa, there are still paths to investing in or expanding your own restaurant.^{[2]
  X
  Research source}
2
Determine the sort of restaurant you want to open. Before you go any further, it’s important to think about the kind of restaurant you want to set up, which will influence the kinds of permits you need, your budget, and most everything else. Many first-time restaurateurs opt to open a smaller business, like a food truck or stand, before they open a brick-and-mortar restaurant. Other options include:^{[3]
X
Research source}
- A ghost kitchen: A ghost kitchen is a kitchen without a dining space that sends out orders via delivery apps like Doordash or Ubereats. With a ghost kitchen, you save money by not having to furnish and maintain a dining room. Startup costs for this range from $10,000-$50,000.
- Home catering: With a home catering business, you cook out of your home (or an external kitchen), and provide food to events or to sell at markets. Cooking out of your home further reduces costs, since you don’t have to lease a kitchen space, and costs about $10,000-$50,000.
Advertisement
3
Determine your business structure and apply for a business license. Before you can do business, you need to apply for a business license. And before you do that, you need to determine what sort of business you’ll be opening. There are 4 primary entity types, each with their own advantages:^{[4]
X
Research source}
- Limited liability company (LLC): Perhaps the most common small business structure, this offers legal protections and certain tax benefits, and mitigates personal responsibility.
- Sole proprietorship: This means that you as an individual are responsible for all debts and other legal obligations involved in running a business. There are fewer strings, but more personal risk.
- Partnership: This is similar to a sole proprietorship, but responsibility is split between 2 or more partners who go in on the business together. It’s a great choice if you plan to open the restaurant with the help of another person.
- Corporation: Perhaps the most complex, and not usually a common structure for small businesses, this registers the business as separate from the owners, meaning the business itself is responsible for taxes, property, debts, and other responsibilities, protecting owners.
4
Apply for a restaurant loan, find investors, or crowdfund your business. The median cost of starting a brick-and-mortar restaurant is about $375,000. That’s quite a bit! But that doesn’t mean it’s impossible—far from it. Most restaurateurs receive funding by getting a business loan from a bank, finding outside investors, or using a service like GoFundMe to crowdsource their business. Also check in with your local nonprofit organizations for grant availability.^{[5]
X
Research source}
- Also write a business plan, which you can show potential investors or banks to prove you have a solid plan.
5
Obtain other licenses and permits. There are many legal hurdles when it comes to opening a restaurant. For example, you need a food service license from your local health department; a liquor license if you plan to serve alcohol; a food manager permit; permits to hang signs, and so on. The various licenses and permits needed vary by state, so talk to an employment lawyer to help navigate the legal side of things.^{[6]
X
Research source}
- These regulations also vary by city and state, so it’s especially helpful to have legal representation that knows the ins and outs.

Part 2

Part 2 of 3:

Opening the Restaurant

1
Find a suitable location. Now that the paperwork’s out of the way, it’s time for the fun stuff! First, choosing a place to open your restaurant. Location is everything—opt for somewhere that gets lots of traffic, either on-foot or by vehicle, to organically drive people inside. Browse local real estate listings for spaces for lease or sale, and tour them, if you can. Other things to consider include:^{[7]
X
Research source}
- Zoning laws: Unfortunately, you can’t open a restaurant just anywhere. A building must fall within an area zoned for commercial use, so call the city’s municipal planning department for more info on any particular building.
- Appearance: Diners generally prefer a clean, tidy location that looks presentable inside and out. That said, many city dwellers don’t mind a little rough-around-the-edges, DIY look.
- Accessibility: If customers can’t find your space or have difficulty parking or navigating to it, your sales will take a hit. Find somewhere identifiable and easily-reached by car or by foot.
- Surrounding businesses: The other businesses around you can help with synergy. For example, if you open a restaurant next to a mechanic, the mechanic’s customers are likely to pop into your business for a bite while they wait for their car.
- Cost: Of course, we can't forget how much it costs to occupy the space. You may have to sacrifice other positive aspects for the sake of saving a few bucks in rent.
2
Choose a name and a theme. The name of your restaurant is your business’ identity, so make it striking, snappy, and easy to remember. Themes are important, too. Serving Indian food is a theme in itself, but you might further distinguish your business by only serving breakfast, or by specializing in a particular dish. Go for something that sets you apart from other nearby restaurants.^{[8]
X
Research source}
- When you’ve picked a name, apply for an Employer Identification Number on the IRS website—every U.S. business needs one to ensure that their name is unique and they’re infringing on an existing business.^{[9]
  X
  Trustworthy Source
  Internal Revenue Service
  U.S. government agency in charge of managing the Federal Tax Code
  Go to source}
3
Craft your menu. Balance is key here. When making a menu, definitely show off your favorite foods from home, but also cater to your audience—be sure to feature more common Indian dishes an American will be familiar with, like curries, on top of those more obscure dishes you want to introduce them to. Also balance more complex, sit-down dishes with simpler, to-go dishes. Diversify your menu, but don’t feature too many dishes, which will increase both costs and food waste.^{[10]
X
Research source}
- Restaurants that feature meat alternatives like Impossible meat or other plant-based substitutes often find success with health-conscious or vegan customers.
- Also remember to include selections for small children, who tend to be pickier than older customers.
4
Find a food supplier. You can’t cook and serve food without getting the raw ingredients from somewhere else, first. Food suppliers are businesses that provide restaurants with bulk ingredients at a lower cost than buying them from markets or grocery stores. Browse the Better Business Bureau’s website for suppliers in your area.^{[11]
X
Research source}
- You can also opt to locally source your ingredients from produce markets or individual suppliers of particular ingredients, but it may cost a bit more.
- Also visit bulk restaurant stores, which provide many things restaurants need at significantly lower costs than other standard outlets.
5
Purchase equipment like ovens, stoves, grills, and refrigerators. Every restaurant needs the proper tools to cook food. Shop for commercial restaurant equipment, which is often cheaper in the long run and enables you to cook greater quantities of food at once. You’ll also need a dishwasher, exhaust equipment, cash registers, tables, chairs, utensils, pots and pans, and dishes.^{[12]
X
Research source}

Part 3

Part 3 of 3:

Running Your Restaurant

1
Hire back- and front-of-house staff. At the start, your staff may just be yourself and a few family members or friends, but consider expanding as you begin to make a stable profit. Staff your kitchen with ample, capable cooks, and hire and train friendly, approachable waitstaff and cashiers. Conduct interviews to make sure each potential employee is able and up to the task, and pay them right to keep them around.^{[13]
X
Research source}
- Contact your state’s Department of Labor to inquire about wage laws, hiring ages, and other employment regulations.
2
Market and promote yourself online and in-person. They say the best restaurants run on word-of-mouth, but even the best restaurants have to start somewhere. Take out ads in your local newspaper declaring your menu and hours, set up signs outside your shop, and create profiles on social media sites like Facebook, Instagram, or Twitter to build your online presence.^{[14]
X
Research source}
- Also create promotions with businesses nearby, like offering discounts or package deals if a customer shops at both places.
3
Comply with local food safety regulations. The health department is your friend, not your enemy. By ensuring your kitchen is clean and up-to-code, you ensure your customers are satisfied and will keep coming back for your food. Visit your local health department’s website to find local codes and regulations, and cooperate with their authorities to pass regular safety inspections.^{[15]
X
Research source}
4
File taxes with the IRS. Whether you’re working in the restaurant yourself or just owning it from overseas, you still need to report and pay income and other taxes to the IRS. Call an IRS agent or hire an accountant to get you registered with the IRS and help you pay your taxes—it can be a somewhat confusing process, even as a citizen.^{[16]
X
Research source}