Headline ranges by city
| City | Format | Total capex (₹) | Sqft |
|---|---|---|---|
| Ahmedabad | Casual dining | 32-48L | 1,000-1,400 |
| Ahmedabad | QSR | 18-28L | 400-700 |
| Jaipur | Casual dining | 30-45L | 1,000-1,400 |
| Jaipur | QSR | 16-26L | 400-700 |
| Kochi | Casual dining | 35-50L | 1,000-1,400 |
| Kochi | QSR | 20-30L | 400-700 |
Line item 1: equipment — ₹12-18 lakhs
Equipment is nationally priced — the delta vs metros is logistics, not unit cost. Typical casual dining stack: range, tandoor, chiller, freezer, dishwasher, exhaust hood, prep tables. Add 12-15% for installation. Ahmedabad and Jaipur have strong local equipment dealers; Kochi adds 5-8% on freight from Chennai/Bengaluru.
Line item 2: interiors — ₹12-22 lakhs
Tier-2 fit-out runs ₹1,000-1,600/sqft for contemporary casual dining. Ahmedabad SG Highway and Jaipur C-Scheme at ₹1,200-1,400/sqft. Kochi Kakkanad at ₹1,300-1,600/sqft. Contractor rates are 20-30% below Mumbai; the savings are real but don't expect Mumbai-grade finish at ₹800/sqft.
Line item 3: deposit — ₹5-12 lakhs
| City | Rent (₹/sqft/mo) | Deposit (months) | On 1,200 sqft |
|---|---|---|---|
| Ahmedabad | 60-120 | 3-6 | ₹2.2-8.6L |
| Jaipur | 50-100 | 3-6 | ₹1.8-7.2L |
| Kochi | 80-140 | 3-6 | ₹2.9-10L |
Tier-2 deposits are shorter (3-6 months vs 6-10 in Mumbai) and rents are 50-70% lower. This is where most of the capex saving lives.
Line item 4: licences — ₹1.5-2.5 lakhs
FSSAI, GST, Shop & Establishment, Trade Licence, Fire NOC, Signage, Music. Gujarat (Ahmedabad) and Rajasthan (Jaipur) have faster municipal timelines — 45-75 days practical vs 75-110 in Mumbai. Kerala (Kochi) adds Pollution NOC scrutiny for tandoor outlets; budget an extra 2-3 weeks.
Line item 5: working capital — ₹5-8 lakhs
Lower fixed costs mean lower working capital needs. Ahmedabad casual dining at ₹3.5L monthly fixed needs ₹5-6L runway. Still under-budgeted by most first-timers — month 3 cash crunch is the #1 tier-2 failure mode.
Where tier-2 saves vs tier-1
- Rent + deposit — 50-70% lower; the single biggest delta.
- Interiors — 20-30% lower contractor rates.
- Licence timeline — 30-45 days faster in Gujarat and Rajasthan.
- Labour — 10-15% lower fully loaded payroll vs Pune baseline.