Cupids Health

How much profit in the hotel business you see? – MoneyPluck


When you say about hotel business.. there are different types of hotel businesses ranges from 5star hotel to a street side food stall. Here Iam going to tell you about the profit of a normal hotel ie, veg and non-veg hotels that approximately started out of a 4 to 5lakh Rs.

Hotel Business Profit
Hotel Business Profit

In a normal hotel there are three types of servings…

  • Breakfast servings,
  • Lunch servings,
  • and Dinner Servings.

So, let us see how much investment, how much profit, how many people work and what work needs to be done for these types of normal hotel.

How Much Profit in a Hotel Business?

Investment

You may approximately require 5 lakhs to start this kind of business. And that would be subdivided as follows…

Hotel Shop Advance Cost: 60,000 to 1 lakh Rs.

Kitchen Material cost + Tables Chairs + Other Costs = 4 lakh Rs.

Minimum you have to keep 5 Lakh Rs to start these kind of business…

And the monthly rent for the shop would be ranging around 3000 to 10000 Rs.

Workers Details and Their Salaries:

2 Cook Specialists (There are two types of cook specialist for any hotel, ie Breakfast Specialist and Lunch Food Making Specialist)

1 Assistant for the cooking master.

1 Supplier for two or three table

1 person for cleaning the table and collects the dishes from table after eating.

1 person for washing the kitchen materials.

1 person for parcelling the food

1 person to collect the cash and give the bill ( Mostly it will be the owner in this type of hotel)

It is very important to employ both the cooking specialists for these types of hotel business.

Breakfast Specialist – He will cook from morning 6 am to 11pm.

He will do Dosa, Egg Omlette, Parotta and etc according to the needs of the hotel.

He will get the salary ranging from 500Rs to 1000Rs per day. Salary is based on the business of that area…

Lunch Food Specialist:

He will cook from morning 5 am to 4 pm.

He will do all the things like making Dosa dough, Idly dough, Parotta dough, Sambar, Rasam and Rice etc according to the needs of the hotel.

He will get the salary ranging from 500Rs to 1000Rs per day. Again the salary is based on the business of that area…

Assistant Job Role and Salary: Assistant will cut vegetables, pick and place the things properly and help the cook to accomplish his daily routine properly.

For him salary would be approximately ranging from 300Rs to 500Rs per day.

Suppliers: He will start his duty from 7am to 11pm.

For each suppliers salary will be ranging from 300 to 500Rs per day.

Cleaners and Dish Washers also get the same salary ranging from 300Rs to 500Rs per day.

Turnover and profit

Now let us see how much turnover will provide the best profit from this type of hotel businesses.

These profit are calculated after subtracting all the expenses like current bill, rent and everything…

If your hotel runs for atleast 8000Rs to 10,000 Rs per day… then you will get the profit like 800 Rs to 1000Rs ie 10% profit.

If you hotel makes the turnover of atleast 15000 and above then you will get the profit like 4000 Rs to 7000 Rs. ie 40% profit. (this increase in profit is because of approximately you will have same expenses but more sales…)

If your hotel runs for only 5000Rs per day then you will gain only 400 to 500 Rs per day.

Many of you have heard other people say that hotel businesses get 50% of profit… yes that is true… but there are expenses like salary for the master servant and etc… so above are the ideal profit a normal hotel business from a practical perspective.

Important Notes For Those Who Want To Start This Business:

Location: You should locate in a crowded place

Water Facility: You should verify the water facilities…

Parking Facility: There should be atleast some space to park two wheelers. If there is no place then it will be very hard for anyone to come to your hotel.

Govt approved place: You should ensure that it is a government approved place. Because you invest your time, money and energy you should avoid any penalty or removal of your business due to illegal start of the business.

Cooking Agent: There will be some agent who supplies the cooking specialist, because if your cook is on leave you can use this agent and replace someone on that day.

Open a current bank account, which is a must to start and run any business.






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