Food Business in India: Types of Food Business You Can Do & More

. 5 min read
Food Business in India: Types of Food Business You Can Do & More

The most significant factor in deciding about a potential business prospect is its feasibility in the long run. A fast-food business is one such idea that has the durability of a marathon. With people restricted to their homes’ confines for a long time due to the pandemic, this is the right opportunity to pounce on their craving for dining outside. Moreover, with many food delivery applications coming into the mainstream, it has become more enticing to start a fast-food restaurant in India. Here is a list of some of the most amazing fast food business ideas to initiate, in India. This piece covers all you need to know about your next fast food venture from the right location and initial investment to promotion and expansion possibilities.

1. Fast Food hotspot/Casual Dine-in

Fast food hotspots are situated mostly inside local markets. They are open spaces with two to three chefs and a casual dine-in set up. All you need to start is a dazzling menu, some great cooks, and obviously, government permission. Besides, 3-4 round tables are a must and, since it is a casual setting, you may or may not opt for chairs. Competitive prices and promotional tactics will keep you a step ahead of your peers.

A fast-food hotspot or Casual Dine-in business requires a small amount of early investment in the range of Rs. 4 to Rs. 5 Lakh of which a major chunk goes into marketing. The preferred location for this type of fast food joints in India is a local market near middle-class residential societies, which isn't too crowded nor void of an evening rush. There's a good scope for growth with honest efforts and inputs. With time you can separate veg and non-veg menus, get more chefs on board, open similar hotspots in nearby markets, and improve the ease of access for your customers to increase profits. Moreover, it would be an added plus to have a home delivery facility in Covid-19 times.

2. Fast Food Restaurant

A restaurant is different from a food hotspot because it is usually a closed setting with more chefs and a proper infrastructure. It can be situated even in isolated places like on the sides of highways or expressways or in the town hub. An elegant seating arrangement complemented by a diverse menu and centralised air-conditioning help in attracting customers. The benefit of opening a restaurant is that you can even set higher prices because entering such a food outlet is prepared to spend more than what they would have outside. The more likely location for a fast-food restaurant is a big, busy market area where people would want to have a break after an arduous shopping spree.

The initial investment in this fast-food business is Rs.10 to 12 Lakh, and its success depends on the quality of services you offer combined with a good marketing strategy. It takes some time to recover investments and move towards earning profits; hence one must be patient and gritty enough before having a go at opening a restaurant.

3. Cafe

This is an affordable yet stylish food setting aimed at college students, office goers, and local people. There is no restriction in choosing a location as cafes have seen success in different places ranging from small markets to an area specifically dedicated to fast food outlets. You'll need to have a good marketing strategy that helps you stand out amongst your competitors. Promotional discounts are the way to go in the beginning.

An investment of around Rs.10 to Rs.12 Lakh might do depending on the size and platter you go for. Once the outing becomes a success, you can make a brand out of the cafe and open its units in various other places. Again, the taste you offer matters a lot along with other customer services.

Male and Female Characters Interacting with Burger, Hot Dog, French Fries, Donut and Soda Drink

4. Food Van/Truck

This is a complete mobile way of going about things. You don't have a physical seating arrangement for the customers and carry out the business in a customised Van or Truck. From chefs to the managers, all travel along, while parking at regular stops where there is a demand. It is a cost-effective idea to start a fast-food business where you don't need to put additional resources for home deliveries and do that with the vehicle you operate. Since it is ambulant, the question of location doesn't arise.

There is not much spending on infrastructure build-up, and hence, the initial investment might range from Rs.5 to Rs. 7 Lakh. Promotion and Marketing are necessary but using innovative ways you can reduce those costs as well. Government permissions might play a pivotal role here since already established outlets might not like your company around their places. Success depends on how you expose your outlet to the masses and increase the reach of your services.

5. Fast Food Dhaba

Inspired by the most traditional Indian way of serving delicacies, a fast-food Dhaba has a modern touch to it in terms of menu. The perfect location for it is National Highways or Expressways where you can offer a diverse menu at affordable costs combined with an open setting.

To attract eaters, innovate with your Dhaba style by giving it a theme-based design ranging from Bollywood styled decoration to a classical Indian setup with ‘Charpais’ and ‘Khatiyas’. It can give you a good amount of revenue if the location is right for which government permission is supreme. With promotion and marketing expenses being on the lower side, it doesn't require a huge investment and has the ability to provide good returns.

6. Franchise

Here, you operate an existing business, probably very popular, by taking its franchise. The benefit of such a setup is that you don't need to put any extra effort into promotional activities and get to bank upon the brand's name.

Investment ranges from Rs.10 to Rs.20 Lakh and can go even beyond the upper limit depending upon the brand you wish to work things out with. You will need well-trained chefs, supreme seating arrangements, the right ambience including music and lighting, prompt table service, and any other thing that helps augment the customer experience manifold.

Depending on your performance during the term of the contract, you might get an extension or not. It is a good idea considering you don't have to start from scratch.

burger, french fries, banana, orange and cold drink against a blue background

Wrapping it up!

Fast Food Business is never out of demand and is hardly unsuccessful if you are determined enough. Apart from the things mentioned above, don't forget to choose a startling name for your food outlet, which should be easy to grasp, and even easier to remember. In present times, the success of any venture depends on the way it gets promoted. If your services’ quality is good, your business will get a positive word of mouth from the consumers and who better ambassadors than them to do your promotion?

A good thing about food businesses is that the competition doesn't really matter if your food is delicious and gives good value for money. Be ready with the required government clearances; don't fall for fake contractors, and cross-check every agreement. Use the latest technologies to take advantages of the ongoing trends in the market. Finally, make sure your chefs are great at their job, and the service is such that people feel like coming back for more.

Also read:

1) How to Open a Restaurant? 10 easy steps to help you open a Restaurant of your own!
2) Serving Meals on the Wheels - How to Open a Food Truck in 10 easy steps?
3) How does the packaged food industry work?
4) Here's how to start a Fast Food & Snacks Business in Easy Steps