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Top Food Business ideas to use In India

One of the most talked-about business is the food business. India is the country of spices and food variations. People in India are fond of tasty and delicious varieties. India, the “Land of Spices”, apart from being famous for a variety of dishes, is also a business house for many industries since time immemorial. So if you plan to get into the food business this can be the most profitable business. As nobody can stay hungry in this whole world and so this business can be the most successful.

When it comes to food business it does not mean a luxurious food court, this business can be categorized in many ways. There are many gourmet classifications under which aspiring business owners can start up with food items.

Let’s check a few of them

Bakery
Cafe
Warehouse

Food Truck
Small eating Joint FSSAI Registration
Sweets Shop

Grocery Shop
Home-Made Products such as pickles, biscuits, chocolate
Bar & Pubs

Juice Bars
Ice cream parlors

Food business Ideas:

Fine dining

Fine dines must have impeccable on-premise set-ups, great ambiance, great seating arrangements, and excellent table service. In short, the customer experience should be top-notch.
Fine dine involves high-end audiences who are willing to spend on luxurious places.
The typical cost for 2 of a fine-dining restaurant is upwards of 4000 rupees. Fine dine counts on great ambiance, great food, excellent customer experience, and a good marketing strategy.

Cafes

With the interest of youth and their trending lifestyle, the urge of coffee, tea and chilling out with mates is increasing.
Any successful business or idea doesn’t just happen overnight it requires lot of efforts and dedication.

On the Contrary to overwhelming belief, a successful business knows that the business should start with deliberate research, planning, and execution.
You need to start early with this part of your coffee shop business plan and evaluate the best coffee shop location for your business.
The cost of setting up a cafe would be 10-15 lakhs the number varying from the area, to the kitchen equipment, type of decorations, quality of staff and more

You want customers to have space to form a line, employees to have the materials they need within reach to quickly make coffee and a comfortable seating area.
You need to take care of basic details such as the traffic flow of the area. Look at other “host” businesses, social areas, and organizations like other restaurants, apartment buildings, colleges, and office buildings.
The typical price range for 2 here would be around 300-700 INR.

Bars & Pubs/ Beer Houses

When it comes to lifestyle Bars and pubs are trending within youth.
Here you’ll get a whole range of drinks – alcoholic and non-alcoholic, along with bar bites (finger food in smaller portions). Bar or pub may cost anywhere around 1000-1500 per person hence the margins for the business owners are pretty high.

Breweries and beer-houses as the names suggest largely serve beer and other alcohol. Depending upon the place and location, their costing would range from 60 – 70 lac which is pretty comparable with that of a normal pub or bar.
You can earn a high amount compared to any other business.

Fast Food Court or Casual Dine

A decent sitting area, comfortable sitting and beautiful ambiance is what your customer demands.
In typical casual dining set up, the cost for 2 can be anywhere between Rs. 1000-1500.
To start one you will have to choose a cuisine such as Chinese, fast food, sandwich corner. To generate revenue you can add a delivery system that can increase your investment cost also.

Bakeries and Patisseries

Bakeries sell all sorts of baked items such as cookies, cakes, bread, pastries.
The idea of bakeries and Patisseries are very much popular. They usually have seating and also deliver at your home. For example bakes n shakes, Baker’s lounge, and cakes n craft.

Pop-up restaurants

Popup restaurants are not just a thing in India but have become quite impressive international market Pop up restaurants are generally found during special occasions or festivals.
They operate from homes, vehicles or any open space that might be available.

They are low-cost investments and take advantage of peak demand and ‘something new’ in an area.

Food truck

A food truck a very cost-effective approach because you do not need a lot of capital to set one up, and you don’t really need to worry about the seating arrangements around or pay heavily on rental costs.

A Food truck is basically a mobile restaurant which can be set up by using your vehicle – a truck, car or cart. You would require all the licenses and legal documents to start your food truck.
The investment can be around 20,000 to 10,0000/-.
The price range for 2 can range from anywhere between 300 to 500 rupees in India. You should have a well-decorated truck, a creative menu and of course, great food to reach out to a large audience.

Juice Bars

You need to set your juice bar near college campuses, gymnasiums or busy streets and market places, where a lot of people can see them.
This business requires a lot of fresh fruits, ice cream scoop.

You need to maintain the quality of your juice and fresh fruits.

Ice cream parlors

This is the most popular segment in the food business. Who doesn’t like ice cream? Whereas they are much similar to juice bars.

You must have visited many popular ice cream parlors such as Baskin Robbins, Top n Town and many more.
The ice cream price range can be set up for 2 anywhere between 300-400.
These are built in small 500-1000 square feet area with a seating space of around 4-5 four-seater tables.

Dhabas

Low budget restaurants are claimed to be dhabas that specialize in serving hot Indian food such as Punjabi, Rajasthani food example Parathas, naans, butter chicken, kebabs and what not.
The budget required to open a Dhaba might vary depending upon the location, the seating, and the quality of infrastructure.

Opening a Dhaba would cost you somewhere between 5 to 10 lac quite easily.
These dhabas are set up in highway roads or nearby petrol pumps and are frequented by travelers wishing to have a quick bite midway.

Street Food

Do Your Product & Market Research
In India, the biggest food market is street food. Every Indian is fond of street food.
Market research means determining the ‘who, what, where, why and when’ and is an essential first step in setting up your street food business.

Cart or thela is a small business which you could consider if you specialize or hire a specialist in making a specific kind of food.
It could be fruit drinks, fast food like samosas, pani-puri, Chinese, South Indian and many more.
Chinese Food Shop: You can also plan to start your own chines food shop. Be sure and clever to conduct a proper market survey before starting this business. You should prefer the area near a college or university to start this business.

Organic Food Shop: Nowadays people want healthy and tasty altogether. The small street cart of sprouts or corn can work wonders. Generally, health-conscious people prefer organic food in recent duration, especially in metro areas. This gives me inspiration for new business ideas of the organic food cart.

Your food needs to be promoted:

To gain more and more customers you need to market your food business. You can market your food online as well as offline.

Get listed on online food websites such as swiggy, Uber and Zomato.

Consider making your own online ordering platform – website and app
Be active on Social Media Facebook, Instagram, WhatsApp
Run ads on Google and Social and get closer to your target audience.

SMS and email campaigns to keep your customers coming back
Provide them offer, coupons to attract your customers.
Go for food tasting and market them in different places.

Share your food sample to make your food popular.
Try to engage your customers by providing them good service.
Go for printed brochures and flyers to distribute.

Maintain a connection to the area and to attract more customers
Calling everyone, including the press, media and magazines, to tell them about your plans.

Top Food chain Franchise in India

A franchise can be the safest way to earn in the food business. Many well-known brands spent millions to market their business and create a brand name.

Brands like McDonald’s, Subway, Cafe coffee day, star bucks coffee company and many more have brand popularity. Identified brands have proven success in the market place.
The power of the franchiser’s brand is more than what you think. As they have already sent a million logos and branding and as franchisee owners, you get full advantage of their market promotions.
Name recognition comes with an established brand so you need to maintain the taste of the brand.

Special support is given in training and managing the staff as a brand needs to maintain its quality.
Reputation is what retaliate, the brand has a name in the market which builds the trust value within the customers.

Pizza Hut

McDonald’s
Subway
Domino’s

Indian Cafe House
KFC
Uncle Sam’s Pizza

Legal Formalities and Registration

This article will provide you a detailed analysis of each category but before that, you should have the knowledge of legal formalities and registration for this business. Food business involves the health and protection of your customer, you definitely need to be secured with all kind of food and health license.

Proprietary or partnership:

As the first instance stands, we have to first look into the type of business that the company is going to register.
You needs to register the business either under a sole proprietorship, LLP, Pvt Ltd.. Company or as a one person.

MSME Registration:

So like any other business, this business also requires investment and it is not always that you have hand full money.
So you can start your business with a loan, it can be from a bank or any other source For start-up or a small scale business loan you can avail for MSME.
There is also CGTMSE which is a credit guarantee given to the MSME sector through various banks and it is by the small and medium enterprise ministry.

Stepping into the food industry involves many licensing and precautions. So here is a list of documents and licenses required for the food business. It varies with your business decision

FSSAI license:Before starting your food business this license is mandatory as this is concluded as a reputation for this business. FSSAI is a statutory body governing food safety and regulation in India. FSSAI license is an approval that provides for food safety and a sense of safety to the customers.
Shop and Establishment Act:This is another mandatory license which is required within 30 days of procuring your shop or food court.

Health/Trade license:As customer’s health is the major concern you cannot take the risk, for example, any case food poisoning can shut your business if you do not hold this license. This license is being given over the concern of public welfare by the local municipal authorities.
Eating house license is another form of license required to open the restaurant and it is valid over three years.
Liquor license: So many businesses such as pubs, bars, and many restaurants involves liquor into their menu. But selling liquor does not always depend on the price and status of the restaurant. It also depends on the city and locality, if you are willing to start your food business near schools or temples this can be difficult.

Trademark:If you started a business you need to name it to gain recognition among your targeted audience. Name or brand needs to be registered under the Trademark Act to prevent the misuse of the goodwill of the shop after well establishing the shops.
Signage license: The shop also needs to get a which is necessary to keep any sign or board in the shop.
Registration under Goods and Service tax: GST Registration is mandatory for any business.

Fire Department NOC: When it comes to safety the Fire Services Act of the state or corresponding building bye-laws dictates that it is advisable to acquire a NOC(No Objection Certificate) from the Chief Fire Officer
Other miscellaneous regulations:Other regulations to be addressed include:
Music license

Lift clearance
Environment clearance certificate

DOCUMENTS REQUIRED

To obtain the license you need to get gather these documents as it becomes difficult to get any license if you do not have these documents. A person who wishes to start this business needs to keep these documents ready.

PAN card
Aadhaar Card
Details of the employee

Address proof of the partners
Partnership deeds (Optional)
Passport size photo

NOC from the landlord (if rental property)
Site plan and layout
Water and power bill

Water quality report
Employee’s medical certificate (Mandatory)
Property tax proof

Structural stability certificate
Certificate of completion in case of newly constructed
Trade license from the local authority

Kitchen layout plan
Affidavit
Contact details

Food category list
CCTV installation undertaking
Amusement undertaking

Lease deed proof
Latest bank statement
Digital signature

Cost and Capital

The cost of capital varies with the choice of your food business. As you know very well the food business has a lot of categories and investment depend totally on what kind of niche you are choosing. Whereas, here is some basic costing.

Food cost – Raw material or inventory cost that you must incur on a daily basis. Now the cost depends on what kind of food business you are doing. If you are will to go to a multicuisine restaurant, food truck or street food.
Kitchen equipment –Your kitchen should be equipped with all the essential kitchenware – cooking vessels, gas stoves, boilers, plates, etc.

Infrastructure Costs– these costs are the overheads that are mostly incurred one time (during set up) or periodically (payable monthly, annually.
Rent: If you are willing to choose a rental property for your business then this is the major cost you need to manage.
Interiors– If you are willing to open a restaurant, cafe, food court, bar or a pub interior is definitely you need to think about.

Technology costs – You would have to invest in POS, Online ordering software, marketing automation packs and more. Online Payment system such as paytm, google pay, Phonepe.

Conclusion

Food is the heaviest yet essential expense in the urban Indian household, subordinating more than 35% of total expenditure. Indian Food & Beverage market is growing @24% annually and is likely to touch 3.80 lac crores by 2017.The food business is one of the simple business ideas..

However, the profit margin totally depends on quality and service. I hope I have been able to provide you with a comprehensive understanding of food business ideas.

Comment and let us know which idea you would like to implement to start your dream business.