How to Start A Small Fast-Food Kiosk Business? [Investment, Tips & More]

There are plenty of options for you to get into the food business in India without the need to set up a brick-and-mortar dining place. Setting up a fast-food kiosk is among the easiest and most cost-effective ways to get into this business.

Most fast-food businesses require comparatively lower investments. Thus, most people choose to set up fast-food kiosks. However, to turn your small business into a success, You'll need to choose a decent menu, focusing on popular dishes, and find a suitable venue.

Takeaway restaurants, cloud kitchen, and food carts are now some of the most profitable small business ideas and the most feasible as the return on investment is high. You can charge the price of a cafe or restaurant menu but save money on furniture, crockery, area, electricity, labour, etc.

However, you’ll still require a minimum of 100 orders per day to make it workable in the long run. If you are looking for new business ideas for a small business, setting up a fast-food kiosk is a profitable business idea.

This guide mentions all the details you need to know before entering this industry.

Conduct in-depth market research

Before opening a food kiosk, you can perform detailed research into the following topics:

• Recognise the target audience for your small business.
• Think of where you're going to put up your food kiosk.
• Get the licences and certificates you'll need for your business.
• Make yourself aware of the food and safety standards specific to your area and get registered if required.
• Analyse the existing competitors.

If you're thinking of launching a food cart, you should also think about investing in restaurant management tools. Set aside a budget for a restaurant POS system that will help you streamline processes and expand your small business faster.

A Brief Guide on How to Set Up a Fast-Food Kiosk Business in India

Listed below are a few crucial factors you may want to consider before starting a food cart business:

1. Product

The first thing to remember before running a food kiosk is what you'll be offering. The raw materials and facilities you'll need will be determined by the dishes you choose. Food cafes are a combination of speedy restaurants which can emphasise dishes that can be eaten easily.

These days, notable food chains are also investing in food kiosks for promotion, but when it comes to local food kiosks, momos, noodles, and kulchas are some of the most common products sold at local food kiosks.

2. Deciding the location

As mentioned earlier, choosing a good spot for your fast-food kiosk is very important. Before deciding on a single spot, find out who your target market is and who your rivals are. For example, suppose you decide that you want to cater to students and youngsters specifically. In that case, it is more beneficial to set up the cart near a university campus or any market near a popular college.

3. Licensing and registration

Before starting up your food kiosk and placing your food cart at a spot, you must get your cart registered. According to the Food Safety and Standard Authority of India (FSSAI), street vendors have to get registered under the Municipal Corporation.

Initiate contact with the municipality wherever you want to set up your food cart and inquire about the required licences. The Indian government has demanded that separate vending zones be formed in each city, where street vendors and food trucks will be given space once they have registered. The official registration process for food cart owners started in 2015 in several Indian cities.

4. Cart and equipment

Setting up a fast-food kiosk doesn’t require much investment. It depends on the quality of and type of cart you choose to buy. You can purchase a good-quality cart made of aluminium for approx. Rs 35,000 - Rs 45,000. You can also customise your food cart. For your business, you'll also need to purchase a commercial cylinder.

5. Determine how much area you'll need

Not only will the commodity you're selling decide if you need a cart or a kiosk, but it would also determine the size of both the cart or kiosk you'll need. To understand the sizes of other cart and kiosk companies, look them up online or in person. Consider which style is most fitting for the business.

• Evaluate if refrigeration, a grill, an oven, or any other function that fits your product is needed if you want to sell food.
• When choosing a cart or kiosk, think about how much storage space you'll require.

6. Pricing

To figure out how much to charge for a menu, you'll need to figure out who your target audience is and who your rivals are. For example, if you want to cater to students, you can't charge a big price because students can't afford to spend a lot of money on food. A posh market or a luxury mall can have higher prices.

7. Profits

Your sales determine the net profits, but usually, profit margins are on the higher end, with the standard being 50%. Sometimes low selling prices and intense competition can affect profit margins. Keeping the raw material and infrastructure costs minimal helps increase the profit.

The food must be visually stunning and delivered by staff who are bright and happy. You'll spend the first six months of your career giving discounts on orders to customers. It could also be beneficial to give a freebie to one workplace every Friday to amuse their interest in the kiosk they pass every day. They will surely return for more after they have tried the delicious sandwich, cookie, or beverage. However, if you lack quality assurance, the customers will disappear as soon as they arrive.

Conclusion

To start a fast-food business in India certainly demands a lot of groundwork. However, you will reap the benefits if you concentrate on the quality of food and maintain proper hygiene. If you are looking for small business ideas to enter the food industry, probably a fast-food kiosk is your best bet to start with.

Many food booths exist and are operated by people who enjoy serving a delightful treat to a diverse variety of customers. You will almost definitely be required to work long hours on your feet and will be directly involved in every aspect of the business.

Also read:

1) How to grow your brand? Best Tips & Tricks
2) Things You Need To Know Before Venturing into a Franchise Business
3) Here's how to start a Fast Food & Snacks Business in Easy Steps
4) Serving Meals on the Wheels - How to Open a Food Truck in 10 easy steps?
5) OkCredit: Simple, Paperless & Secure solution for businesses

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FAQs

Q. Why start a food kiosk business in India?

Ans. With the advent of online ordering apps, plenty of small fast-food business owners have become millionaires. If you want to get into the food industry but don’t have the money required to launch a regular fast-food joint, one option is to set up a fast-food kiosk. This type of business is lucrative and viable, but it can run at a loss if not well-positioned or adequately managed.

Q. What are the advantages of opening a food kiosk?

Ans. There are a few benefits of owning and operating a food kiosk:

• When opposed to restaurants and cafes, the costs of starting a food cart business are comparatively modest.
• If the first location you choose for your cart isn't making any revenue, you can always switch it to a different location.
• Depending on your marketing plan, you can opt to make your food cart mobile or stationary.

Q. What are some of the difficulties that small business owners encounter while operating a food kiosk?

Ans. Although there are several advantages to starting a food cart, there are also a few hurdles to overcome:

• There are various laws and regulations to follow, which can be daunting at times. Local cops can be uncooperative at times, giving a Challan/official warning to food cart operators.
• If a restaurant is situated near a food cart, the restaurant owner can trigger the food cart vendor if its business suffers. In the food industry, there is still a lot of competition.