How to start a small fast food business in India

Indians are crazyyy over food. We are always ever ready to explore new cuisines and flavours in town. In fact, the Indian food market is the fastest growing industry globally with a CAGR of 9%, expecting to reach 6 lac crores by the financial year 2022-23. So, why not think of how to start a small fast food business in India.

 

Step-by-Step Process to Start a Food Business in India

 

1. Business Plan 
2. Investment
3. Business Registration
4. License and Permits 
5. Set-up your Business
6. Hire the Staff

 

Business Plan

 

Planning is the most crucial part of starting a business. Therefore, you need to sit down with the team and make a good plan. 

 

With this in mind, the questions and factors you should discuss for fast food center business plan in India are:

 

• What will be the name of your business?
• Where will you start the business (location)?
• How much investment is required?
• Who are your competitors?
• What are the products they are offering?
• What are the products you will sell?
• How will the shares be distributed?
• What are the materials and utensils you will require?
• Will you do eco-friendly packaging?
• How much is the profit margin?
• What are the prices your competitors are selling the product?
• What will be your prices?
• How to get the FSSAI license?
• What will be the business structure?
• Will you register as a proprietorship, partnership or company?
• What is an auspicious day to start business in 2022?

 

To decide on a type of business, here are some opportunities with low investment and high returns.

 

Types of Small Fast Food Business in India

 

• QSR (Quick Service Restaurant)
• Food Truck
• Small Cafe
• Home-Bakery
• Franchise
• Fast Food Hotspots
• Take-Away
• Food Carts
• Food Franchise (WOW momos, Amul, 1mg, Kwality Walls etc)

 

Investment 

 

To start your business, you will need sufficient funds to survive in the industry.

 

The investment required to start a small fast food business is Rs.5 lacs - Rs. 7 lacs (minimum).

 

If you have personal savings, that is great. However, if you are looking for an investment, you can go for the following options:

 

• Business Bank Loan
• Angel Investors
• Crowdfunding
• Funds for Government Schemes
• Financial Bootstrapping
• Friends and Family

 

Business Registration

 

After planning all the above details, register your business legally. 

 

Registering your business with the ministry of corporate affairs is mandatory in India.

 

You can register your business as any of the following:

 

• Private Limited Company Registration
• Sole Proprietorship
• Partnership
• One Person Company
• Limited Liability Partnership

 

The decision of the structure depends on the factors like ownership, future expansion scale and type of business. 

 

Therefore, consult an expert by filling the form >> to help you choose the best structure for your business.

 

While getting your company registered, the business service provider also applies for your business PAN Card. 

 

So, as soon as you receive your business PAN Card apply for a Business Bank Account to start the business transactions.

 

License and Permits

 

Along with registration, also apply for licenses and local permits to start your small fast food business in India.

 

The mandatory licenses you will need are:

 

• FSSAI License: It is a mandatory license for all food businesses to start in India. It ensures that the food served by you has passed all the quality checks prescribed by the government of India. 
• GST Registration: It is necessary if your turnover exceeds Rs.20 lacs annually (Rs.10 lacs in north-eastern states). However, if your income is below the slab, you can operate without GST.
• Shop and Establishment Act License: You will need to apply for a Shop and Establishment Act License for the shop/cafe/store/premises where you will start your business. 
• Liquor License: If you plan to serve any alcoholic drinks in your eatery.
• NOC (No-objection Certificate): You will need some NOC's from the neighbourhood if you play music. Also, you will need a NOC from the Fire Department after they check your premises for the safety measures.

 

Apart from these, if you plan to start a small restaurant, you may need 6 major licenses required for restaurant in India.

 

Set-up your Business

 

Further, after planning, registration, investments and licenses, set up your space.

 

You will need a minimum of 200-250 sq ft area for starting a small fast food business in India.

 

To find a location, get in touch with your local brokers to get the best deals.

 

After that, decide on a theme for your little food store and decorate it accordingly.

 

Install the electric fittings, furniture and light up your place. 

 

Buy the kitchen utensils, serving plates and spoons. Additionally, keep disposables to pack the food for delivery.

 

Get all the cooking items you need for the recipes. 

 

After that, design a budget-friendly menu and have chef special dishes and combos to attract customers.

 

Hire the Staff

 

To start a small fast food business, you will need at least 2 chefs to cook delicious food as per your menu.

 

Also, hire at least 2 - 3 helpers to help with cutting, chopping, packing and taking orders. 

 

As it is a small business you will not require more people initially.

 

After following the step-by-step process mentioned above, you can now start your business.

 

Grand Opening

 

Select a good day to initiate your business and plan an opening ceremony starting with an auspicious ritual or pooja.

 

You can invite a few close people or more if you want to for the opening and get your store decorated.

 

Also, you can offer a free dish or a discount in the opening week to attract a customer base.

 

Market your Food Business

 

Market your business through the following:

 

• Social media channels of your city. 
• Pamphlets in the newspaper 
• Advertise through radios in the cities like Delhi, Mumbai and Bangalore. Because even now people are fond of radios in the car and stay updated through it.
• Whatsapp Broadcast
• Be available on food delivery apps like Zomato and Swiggy to get more orders.
• Offer regular discounts and combos weekly.
• Put your food stalls in events like the Art Festival, Music Festival and other cultural or fun entertainment occasions of your city.

 

Conclusion

To conclude, I hope this helped you know how to start a small fast food business in India. 

 

The concept of a fast-food business is to serve in as little time as possible. Therefore, make sure you provide tasty food quickly and at a low cost.

 

So, when you open a small fast food business, keep the thought of providing your customers with affordable and tasty food to stay energized and fulfilled throughout.