Things to Consider While Opening a Fast Food Restaurant in India

Things to Consider While Opening a Fast Food Restaurant

Doing something on your own is the best thing in India, which will not only benefit you but also will be a contribution towards the economy of the country. Considering limitation in the job market and stiff competition, it’s always better to be self-employed and also open employment opportunity for others. If you are thinking to start a business, then there is nothing better than the food sector, which has low risk, less investment, and high profit. I once had a chance to experiment in this sector, so I am sharing with you some of the issues I have faced and which may come across your way when you decide to move ahead in this sector.

Let us check what things to consider while opening a fast food restaurant in India.

Choosing the Type of Food You Want to Sell

In India, few types of cuisines are evergreen such as Chinese, South Indian, and North Indian. You will find these cuisines in almost every states of the country. So the safe way is to try with these specialties. However, you need not start all three at once as it may require you to hire 3 cooks, who are specialized in making these cuisines. You can start with one or two and add more cuisines in the future.

Deciding the Place to Set up the Fast Food Joint

Everyone would love to set up shop in an area where there is high footfall but it’s not easy as you need to have a heavy budget to pay the rent. So better to take some wise decision and choose an area with average footfall. Even if you may have less number of footfalls, you can always have other options to reach out to your customers. Other than market areas, best places to set up a fast food joint are office & college areas, where you will get a daily crowd.

Taking Care of Official Documents

Although food business is easy to set up there are several regulations involved due to the seriousness of the industry. First of all, you need to get a food safety license from FSSAI. It is very easy to get a license; you just need to upload some basic documents of your premises such as rent agreement, electricity bill etc. and a nominal fee. I recommend you not to go through any middleman as they may unnecessarily charge you money. For more info, visit the official FSSAI website here.

Another document, you may need is the municipal license, which you can get online or going to your nearest municipality office. Pollution control certificate is nowadays required in many areas owing to the increasing pollution level. GST Certificate is a must have, which will cost you anything between 3k-4k if you go through a chartered accountant.

Prepare Your Budget

It’s very important to have sufficient cash flow if you want to run your business without any hassle. You should keep one thing in mind that you may not reap profits in the very first month as it takes time for people to have their trust in your restaurant. So, you may not earn enough for your fixed costs such as rent, payment of staff and electricity. Hence, you need to keep at least 4 months fixed cost reserve with you. However, the variable cost such as grocery, vegetables, and packaging material need not be kept in reserve as these are proportionate to your per day sale.

Hire an Expert Cook

Hiring a well-trained cook is another thing to consider while opening a fast food restaurant in India as the success of your business depends on it. You can only expect your business to grow if you sell tasty food to your customers and for that, you need an experienced chef. However, you may face some challenge in this area as blue-collar employees are not registered with job portals and you cannot hire hotel management graduates if you have a limited budget. So you may need to depend upon placement agencies. These agencies will provide you the trained staff but you need to pay 1-month commission, which is negotiable.

Installing a CCTV System

After spending quite some time in the restaurant business, I have very well understood that a surveillance system is required to keep a track of everything that happens in your absence. You will not be able to spend your entire time in the restaurant, so you have to leave it at the mercy of your staff for some hours at least. So, you should make arrangement to monitor everything that happens when you are not at your shop. A CCTV surveillance system may cost you anything between 10-15 thousand INR, which includes 4 channel DVR, 3 CCTV HD Cameras and a 1 TB hard disk. You can also choose to view live recording on your mobile but for that, you should have an internet connection with LAN.

Give the Best Customer Service

Last but not least, providing the best customer service should be your goal if you want to gain acceptability from your customers. Remember, repeated customers can be attained if you treat them well. So train your staff to behave well with customers and address any complaints immediately. You can also introduce discounts and offers to attract your customers.

So, now that you have gained the basic knowledge of setting up a fast food restaurant in India, it’s time for you to gear up.

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