How to Start a Food Business in Mumbai?

. 6 min read
How to Start a Food Business in Mumbai?

Mumbai is a perfect place to start a food business. Starting a food business is profitable but at the same time a low investment business. You can start a food business from your home if you don't have a budget for a place. Starting a food business might seem like a daunting and complex procedure. But, if you do it right and plan your steps, it will be an easy process.

The food industry has evolved significantly over the past couple of years. The majority of people start a food business because they are highly profitable and have a good market demand. The food business is one of the best business ideas for Mumbai. Let us discuss the steps of starting a food business in Mumbai.

How to start a small food business at home in Mumbai?

Want to know how to open a food business? The steps below will guide you:

1. Create a business plan

The first step in starting a food business is to create a business plan. It is essential to do your research diligently before making any investments. You must spend a couple of weeks understanding the food business, your target audience, competitors, and the latest market trends in the food business. You must explore the 4 C’s before starting the business. The 4 C’s include customer, consumer, channel, and context. Creating a business has various components like:

  • Target market

Identify your target market of the food business. It defines the audience group you are targeting like youngsters, baby boomers, empty nesters, gen Z, gen X, or senior group? After that, find out what they like to eat the most, why they buy, and what they buy the most.

  • Style of the restaurant

The next step is to identify your restaurant style. Determine if you want to open a bakery, coffee shop, food truck, quick service, snack business, or full-service dining restaurant. Each restaurant-style requires a different technique, plan, and services. So, make sure to select the right style for yourself that suits your personality.

  • Create a menu

The food business is the best business in Mumbai that you can start in 2021. A menu is essential for the food business. It plays an essential role in the popularity of the business. If you have a good menu, customers will come back to your place. Your menu must describe your target market. You can find their trends, behaviour, food style, and favourite dishes from social media.

  • Define your brand

After deciding the menu, define your brand. It includes the logo, slogan, and name of the business. It is essential to pick a catchy name, logo, and slogan that matches the purpose of your food business. It will help your customers to understand the goal of your business.

2. Capital and finance

The next step in starting a food business is to sort out your finances. Many people don’t have personal savings to start a food business. So, you need to secure your finances for capital investment in the business. There are many ways to raise capital, like getting a business loan from the bank, asking your family and friends, using crowdfunding, getting government aid, or finding a partner for your business. Start with small-scale food business and once it stabilises, consider expanding it.

Wada Pao with Green chilli and lemon on a plate

3. Choose your location

Mumbai has some of the most extravagant, beautiful, and amazing places for the food business. However, the rents are comparatively higher than in other states. But there are also several locations in Mumbai where you can find affordable space for your business. Select your location that is accessible for your potential customers and is cost-effective.

4. Choose your suppliers

The next is to choose the suppliers for your business. You will require furniture, POS systems, kitchen appliances, kitchen machinery and tools, food, inventories, and bar equipment. So, you will be dealing with several different suppliers. It is essential to choose the right suppliers who are reliable and sell good quality products or items. You can research and find out the suppliers that will offer you reasonable prices and good-quality items for your business.

5. Licenses and permits

Once you sort your business operations, the next step is to get your licenses and permits for the business. A food business requires more licenses compared to other businesses. It is due to the food items. The licenses required might include business registration, establishment registration, AGMARK, BSI mark, food quality checks, etc. It is essential to adhere to the government's local health & safety codes and food regulations.

6. Recruit employees

After getting the licenses and permits, you can start recruiting for your business. A food business needs accounting people, purchasing experts, marketing and sales managers, cleaning staff, chefs, waiters, hosts, bartenders, HR managers, etc. Look for candidates that are professional and have a good track record. Hiring rookie people can affect your business negatively. Make sure to do background checks on your employees. Social and personal behaviour should also be taken into account while selecting the employees. Digital platforms reduce the pains of managing employees. To efficiently manage your staff and employee attendance you can use the OkStaff app.

7. Advertise your business

The last step to start your business is to advertise your business. Advertising is an essential step in the growth of a business. You can advertise by creating a website, hiring professional marketers or individuals, putting an ad in the Mumbai local newspaper, or offering deals to the new guests, like free drinks or starters, etc. You can also use social media platforms to promote your business.

Businessman Building ADVERTISING concept with Wooden Blocks


To conclude, we can say that Mumbai is the best place to start a food business idea. You can open a food business by creating a detailed business plan. If you are looking to start a food business and don’t know where to start, refer to the step-by-step guide of starting a food business in Mumbai above.

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

5) OkCredit: All you need to know about OkCredit & how it works.

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Q. How to start a catering business?

Ans. The steps of starting a catering business are listed as follows:

  • Make a proper catering business plan
  • Decide your budget and capital source
  • Decide on the equipment and suppliers
  • Get your licenses and permits
  • Hire adequate manpower
  • Market your brand

Q. What food business is the most profitable business?

Ans. Many food businesses are highly profitable. Some of the most profitable food businesses include beverage businesses and bubble tea shops. It is profitable because the costs of goods sold are extremely low. The profit ranges between 15 to 25%. The items are relatively simple and easy to make.

Q. How much does it cost to start a food business?

Ans. The cost of a food business depends on the type of the business. A food business can cost between INR 10,000 to INR 1 crore. So, it is essential to decide the type of business you want to start. If you are looking to start a food truck, it will cost you INR 1 lakh to INR 3 lakhs. A catering business will cost you between INR 50,000 to INR 4 lakhs. On the other hand, a restaurant will cost you between INR 5 lakhs to INR 25 lakhs or more. A small-scale business is more affordable and cheaper compared to a large-scale business.