How To Set Up Your Food Business In India?

October 24, 2019

5 min read

In this blog, know talk about the planning and licenses required to start a food business in India.

shivi

Shivi Gupta

Consultant, Gurgaon

BUSINESS
How To Set Up Your Food Business In India?

The Indian food industry has grown tremendously over the past couple of years, with fine dining, student cafés and online food delivery businesses taking the Indian food palettes by the storm! The food sector in India is expected to have a 30% growth within the next 2-3 years, with more food businesses adding to the millions in the country. Be it a small food café, a hip food truck, a five-star multi-cuisine restaurant, or a home-based food delivery business, a food business in India requires planning and compliance with the rules and regulations applicable over FBOs. In this blog, we’ll talk about the planning and licenses required to start a food business in India.

How To Plan A Food Business In India?

Costing Of A Food Business

The first step to start a food business in India is to lay down a well-defined plan regarding the costs, menu, equipment, staffing, location, etc. Some of the most important things to be included in the food business plan are as follows:

Costs Involved

The most basic thing to do while planning to start a food business in India is to determine the costs involved in obtaining the place for kitchen/store/restaurant, for machinery and equipment, staffing, raw material, furniture and fixtures, and marketing. The costs and budget planning must be done to visualise the scale on which the business can be launched. When the food business owner needs expert advice on determining whether a food business can be launched within their budget, it is advised to consult a business consultant in India to find the right costing solutions.

Location

Determining the location plays a major role in the success or failure of a business. It is important to choose a location where the food business can attract more customers and has less competition instead of a location which already has several food businesses and lesser demand from customers.

Menu And Pricing

Choosing a menu with dishes and food articles that customers demand is essential for a hit food setup. Laying down the dishes and cuisine that the business can serve to its customers and the price at which more customers would want to buy the food products from the business is the most important part of the food business plan. This includes determining the logistics costs when the business provides food delivery services to its customers.

Hiring

Finding the right talents, training and retaining them ensures that the customers get the best services and optimum quality food product. Generally, hierarchy is followed is a food business involving head chefs, cooks, manager, preparers, serving staffs, and other help. Hiring can be the most demanding task for starting a food business as business owners may not have the right skills or knowledge of finding the right talent. In such a case, an HR consultant in India can provide the right insights into hiring, training and retaining the staff for the food business.

Connections With Local Vendors

The business must locate the local vendors to buy the raw material to prepare its food on its premises. It is important to lay down a full-fledged list on vendors and choose the vendors that offer the required raw material at competitive prices.

Advertising And Marketing

Any business requires to advertise its products and services to reach more customers and this goes for a food business as well. A food business needs to have a detailed plan for its marketing, branding, and advertising to attract customers. This includes deciding upon the name, logo, marketing plan, website or app development strategy, and advertising plan. Consulting the right marketing experts can help the food business in laying down its marketing and branding strategy.

Licenses And Registration Required To Start A Food Business In India

There are numerous food business licenses and registrations in India to legally start and operate a food business without any hindrances.

FSSAI License And Registration

Any food business in India is required to comply with the rules and regulations laid down by the FSSAI Authority and obtain an FSSAI license and registration as per the nature and scale of business. 

NOC From Fire Department

A Non-Objection Certificate from the fire department green lighting the gas appliances and kitchen safety standards need to be obtained by the new food business.

NOC From Municipal Authority

A NOC needs to be obtained from the municipal authority for the food business premises once the locality of the business is determined.

Eating House License

When the business is going to serve food to customers on its premises, it needs to obtain the Eating House License from the government authority.

Health Certificate

The Health Certificate signifies that the business is adhering to the health standards in its equipment, food material, etc.

Liquor License

The food business requires a liquor license when it is going to serve liquor on its premises.

Starting a food business in India is a complicated ordeal that requires detailed planning, strategy, and difference licenses and permits. Consulting a good business consultant in India can help the business owner in knowing the right channels, strategy and solutions to smoothly launch a food business. 

SeekWiser can connect new business owners with the best business consultants in India who can guide them on how to start a food business in India hassle-free. Give us a call at +91-7827886239 or send us an email at support@seekwiser.com