Delhi has a unique food tradition; it is the metropolis of foodies, hence starting a food business is the best business in Delhi. If you think you are good at cooking delicious food you can serve, you must enter this business. But before starting a food business in Delhi, you must remember the legalities you have to follow as a food business owner.
We have listed down the 7 best food business ideas for Delhi and how to start a food business in Delhi to help you chalk out your business plan.
7 Best Food Business Ideas to Start in Delhi.
These food business ideas will help you identify what type of food business you can start.
1. Quick Service Restaurant
McDonald’s gave birth to the quick-service restaurant model, and today, one can see how fast Mcdonald's has scaled its franchise business throughout the world. Quick Service Restaurant usually sells limited items with zero customisations compared to the restaurants, and their meal is often budget-friendly for students and youngsters. It is easy to prepare and takes less time than a full-service restaurant that takes at least 40 minutes to serve the food.
2. Full-Service Restaurant
A full-service restaurant is a typical restaurant that sells several dishes and also includes liquor and wine. To start an FSR, you’ll need a minimum investment of 10 lakh rupees and other marketing expenses to make it stand for at least ten years. An average person or a family entering an FSR spends a minimum of 1500 rupees for having a decent meal.
3. Catering Services
If you are wondering how to start a catering business, then it is the perfect time to start.
You can offer food services at weddings, marriage halls, receptions, etc., and earn a lot depending on the demand from customers. In this business idea, you need to manage the raw material cost and labour cost to obtain profits from the package.
The Dhaba is another type of restaurant that one can see near the highways, where they serve people at a lower cost than a typical restaurant. If you ask how to open a food business like dhabas in India and what kind of investment is needed, we have the right answer for you. You can start with a low investment of 2 lakh- 3 lakh rupees and surely gain an ROI of 50,000/month within a year. The dhabas are most famous for North Indian dishes like lachha paratha, naan, Palak paneer, butter chicken, etc.
5. Tiffin services
If you wonder how to start a food business from home, then a tiffin service is the solution you are looking for. You can actually provide food to people living in PGs, rent, or away from their families, etc. You can cook for them monthly and offer them food twice a day and earn handsome money.
It is a perfect business idea for females to start in Delhi to work in their free time and support their families.
Cafes are another profitable business to start in Delhi. Either you can start your own cafe or take franchises of other cafes. Cafe businesses require a minimum investment of 10 lakh - 20 lakh rupees, and the breakeven usually takes 18 months to materialise. Instead of simply offering coffee, you can upsell or cross-sell them through different side dishes and convert their snack into a small meal.
7. Food truck business
You need two licenses, one from FSSAI and the other from RTO to sell on the streets.
You can start your food truck business in Delhi with a minimum investment of 1 lakh - 2 lakh rupees and generate enough revenue within a year. It is more profitable if you operate it near the colleges. As students love to try new food items, they will definitely be your first few customers without hesitation.
How to Start a Food Business in Delhi?
1. Start by registering a firm
The first step is to register your firm legally under a limited liability partnership or a private limited company. You must register your business name and trademark it to avoid future conflicts with similar businesses. You need to submit Registration form A if your business turnover is under 12 lakh rupees. After registration, you’ll need a regular license to start your food business.
Types of License You’ll Need:
- FSSAI License
A Food Business Owner must get an FSSAI license to operate any food business in India. Follow all the strict guidelines by the FSSAI or, you will get your license cancelled.
- GST Registration
Every business owner has to do GST registration and get their GST number for doing transactions across India. Register for GST for every specific state (only if you deal with other states.).
- Liquor License
Suppose if you offer drinks with food in your restaurant, get a liquor license.
- Health License
They make this license to ensure that your foods are safe for your customers to eat.
- Music License
If you own a bar or a pub and you wish to play songs or host a live performance, get a music license to do it.
2. Decide the type of restaurant you want to start
We have discussed different restaurant types you can open in Delhi. So you can select the way you want to serve your customers. Suppose you choose to serve as QSR, in that situation, always prepare a stock of pre-cooked meals to save your and your customers time. Also, manage the fluctuating cost of the raw material in the initial days to sustain.
3. Choose your location
The location is an essential step in the food business because the more footfall you will get, the more your business will flourish. But if you are thinking about how to start a small food business at home, you don’t have to worry about it. You can prepare food from your home kitchen and tie-up with delivery partners like zomato and swiggy to serve your customers. All you have to do is create a social media presence for your cloud kitchen.
4. Decide your menu
Checking the availability of raw material is a crucial step before deciding the menu of your eatery. If it is easier to find in the local market, you can add that food item to the list.
Design your menu in a way that makes your target customers spend more and try new dishes without looking for money.
5. Gather funds for your idea
If you're planning to open a huge restaurant chain, you can pitch investors for money, ask friends or relatives to invest, or take a loan. Several small business loan schemes are offered by the government and private financing bodies. Make a proper estimate of the initial costs and borrow only as much as you need.
6. Hire workforce
Hire a chef to cook your food, a waiter to take orders from customers, and a front desk person to receive payments and generate the bills. You will not need a workforce of more than five to ten people whom you can easily hire by putting an ad in a newspaper, social media platforms like Instagram, Facebook, and LinkedIn. It is better to hire trained professionals.
7. Connect with suppliers
Suppliers are the backbone for your business in providing raw materials that you need daily. Connect with a good vendor to get all your raw materials delivered on time and at a reasonable cost. Negotiate with the supplier at the start as you are on a limited budget.
8. Manage your operating cost
Being a restaurant owner, you have to manage the food cost, rent, electricity, employee salary, and marketing. So better use technology software to take care of your accounts, or it would become difficult to extract profits and cash flow in your business. If you need help, you can use the bahikhata app of OkCredit.
That completes the 8 steps on how to start your food business in Delhi. If you were looking for how to open a food business, you can follow these steps and start your own business in 2021.
You can also connect with us to manage your finance and account statements. Our software we’ll make your records hassle-free so you can focus on your business.
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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 attract more customers to my restaurant?
Ans. Identify your USP, market your signature dishes harder, and make them popular in your local area. Also, use digital marketing to promote your business at a low cost or hire a digital marketing professional.
Q. Which type of food business is best for me?
Ans. It totally depends on your capital, menu, and workforce you can hire. The most viable small food business options are QSRs, cafes and cloud kitchens.
Q. How much registration fee is needed to start my food business?
Ans. It would cost you around 10,000 rupees to register your business and add your other license cost.