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How to Start Momos Business? [A Good Business Idea?]

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Do you aspire to make it big in the food industry in the coming years? How about starting with a food stall, or a momo stall, to be specific? After all, these steamed dumplings are one of the most popular street foods in India. And launching a food stall is one of the most exciting and affordable ways to step into the food industry.

Have you ever wondered why street food is so famous in India? Because more and more people seek food options that are quick, inexpensive, and delicious. From the businessman’s view, street food stalls need low start-up costs and offer mobility.

Food carts, kiosks, food trucks, and trailers have a lower overhead cost as compared to restaurants. That’s not all, the mobility factor also enhances the viability of this business.

Understanding the consumer’s point of view, fast food like momos are cost-friendly, convenient, and filling. Be it students, tourists, locals, corporate professionals, or families, momos are a perfect food option for every age group.

In this blog, we discuss why a small momo stall is a good business idea. We will also discuss the probable roadblocks in this journey, and ways to overcome them. Last but not least, we will conclude the blog with some essential momo stall business set-up steps.

Why would a small momo stall be a good business idea?

There are several advantages of starting a food stall business that is making it a hot cake for young business minds.

  • Low Investment – A momo stall will come up with a minimal start-up cost. All you need is a stall, a chef to cook momos, and a cashier to handle finances. That’s it. You can hire the service staff once your business starts picking up.
  • Lower Risk – People who are looking for a business option that comes with a lower risk should go for this idea. You see, investment and risk are directly proportional to each other here.
  • Authority – Are you fed up with being controlled by your bosses? If yes, it is high time you take control in your hand. A food stall business allows you to lead and become your boss.
  • Flexibility – Although food stalls have a fixed serving time, you still have a lot of flexibility in your hand. You can decide your work timings, rates, finances, and work locations according to your preferences.
  • Mobility – A momo stall is a perfect business option for people who prefer mobility in business. You can shift your stall anytime according to consumers demand and business needs.
  • No Prior Experience – The food stall business does not need any prior hospitality experience. All you need is excellent networking skills, presentation skills, and marketing skills. If you are good at it, the rest will eventually fall in place.
  • Great Scope – Indians love spicy and delicious foods. Moreover, they do not mind spending a higher price at hygienic food stalls. It shows how bright the future of the food stall business is. So keep all your worries aside, and get started with your momo food stall.
  • Excellent brand building Opportunities – The food stall business offers excellent brand-building opportunities. Firstly, it allows you to experiment with the location. Secondly, you can expand your menu as per the feedback of the customers. Brand building on a smaller scale can help you in capturing a significant market share.

Challenges that you can expect

Like any other business model, the momo stall business is also vulnerable to several challenges and roadblocks.

1. Laws and Regulations

It is one of the biggest challenges that momo food stall owners can expect in this business. They have to follow several rules and regulations laid down by the local authorities. Failure to which can attract penalties and challans.

How to overcome it?

  • Be well-informed about the current regulations of the city you are operating in.
  • Get in touch with a government official for more details.
  • Make sure all your payments are made on time to avoid any issues later on.

2. High Competition

Expect a high level of competition when it comes to the food industry. Consumers are willing to experiment and are volatile in their preferences. Be it you or any other food stall in your vicinity, the competition will increase with each passing day.

How to overcome it?

  • Make sure you offer the best menu at the most competitive rates.
  • Find a location that can offer you a better footfall with lesser food stalls to challenge you.
  • Try to improvise your food quality and taste to maintain a lead in the competition.

3. Weather Conditions

Weather can play a spoilsport for your momo stall. The footfall might not be the same every day. You might experience lower footfall due to extreme and unexpected weather conditions.

How to overcome it?

  • Be prepared for this financially.
  • Start home delivery for the customers who cannot make it up to your stall.
  • Roll out exciting offers to attract more customers.

Steps to set up a Momo stall Business

Follow these steps to reach your momo stall business to the zenith of success.

1. Make a Promising Business Plan

The first thing that you should do is to make a solid business plan for your momo stall. Spend a significant amount of time to:

  • Determine your target market
  • Define your stall style
  • Define your USP
  • Create your brand
  • Select the menu or food offering

Make sure you keep in constant touch with the customers for their feedback, thoughts, and impressions.

2. Secure your financing

Although the food stall business comes with a low start-up cost, you should still secure your finances on a safer side. You can:

  • Get a business loan.
  • Use crowdfunding.
  • Find investors or partners.
  • Go for government aid.

Make sure you go for a loan amount that can be paid within the stipulated time. As far as the partnership is concerned, go for the partners who are as passionate about this business as you.

3. Choose the Location

Location will be the prime factor that will determine the success of your business venture. Go for a location that is:

  • Less crowded
  • Has a high footfall
  • Is cost-effective
  • Accessible and happening
  • With lesser competitors

Make sure you take care of all the legal rules and regulations before going ahead with your momo stall set-up, not to forget licences, permits, and taxes.

4. Design the Space Layout

It is again a very crucial step in your momo stall set-up process. Creating optimum space in your compact stall will make it look organised and well-planned. Some tips to make the most of your small momo stall:

  • Install chimneys to keep the stall smoke-free.
  • Make sure you maintain supreme hygiene and cleanliness in your cooking area, as it will be visible to the customers.
  • Keep the colours and layout simple for the people working in it.
  • Paste menu and rate cards on the front walls for the convenience of customers
  • Maintain social distancing norms till things get normal

5. Determine your Suppliers

Suppliers will be the people who will supply you necessary raw materials to cook momos and other dishes. Hire the most reliable and reputed suppliers in the street food industry. Try to foster long-term relationships with your suppliers for consistency in your quality and taste.

6. Permits and Licence

Identify the necessary permits and licences needed to operate a momo stall business in your city. Apart from this, make sure you are well-aware of all the latest safety codes and regulations applicable to your business.

7. Advertise

Here comes the most creative and important part of starting a momo stall. You should spend a fair amount of funds on advertising your new momo stall business. Some tips are:

  • Go for word-of-mouth publicity.
  • Use social media.
  • SMS marketing will also be a great idea.
  • Create your website.
  • Ads in local newspapers.
  • Offer discounts to new customers.

Using a mix of two to three advertising methods will prove to be a smart move. Make sure you use interesting and captivating content in all your advertising and marketing campaigns.

Bottom Line

Considering all these points, a small momo stall will be a good business idea. However, running a  food stall business needs a lot of groundwork. Apart from this, the quality of food and hygiene levels will determine your tenure and scope of success. If you wish to establish yourself in the food industry, starting with a simple momo stall will be a great idea. Good luck!

Also read:

1) Here's how to start a Fast Food & Snacks Business in Easy Steps
2) How does the packaged food industry work?
3) How Profitable Is A Restaurant Business In India?
4) Serving Meals on the Wheels - How to Open a Food Truck in 10 easy steps?
5) OkCredit: All you need to know about OkCredit & how it works.

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FAQs

Q. Why should you go for a momo stall business?

Ans. 1. Low investment
2. Low risk
3. High creativity
4. Promising scope

Q. What will be the total cost of setting up a momo stall?

Ans. The total cost can come around INR 50,000, including licences, permits, cart, raw material, and marketing.

Q. What permits and licences will I need for the momo stall?

Ans. You should get in touch with a local administrative officer to know about the permits and licences applicable to your city or location.