This document provides an outline for a business plan to start a food business in India. It discusses the growth of the Indian food service industry and provides an analysis of the market size and trends. It outlines the process for starting a food business in India, including deciding on the business type, costs involved, required licenses and permits. It also discusses developing a business model, connecting with vendors and establishing a technology structure. The document highlights risks involved and provides financial projections for the growing food service sector in India.

1. BUSINESS PLAN TO START A
FOOD BUSINESS

2. CONTENT OUTLINE
I. THE FOOD SERVICE INDUSTRY IN
INDIA
II. MARKET ANALYSIS
III. PROCESS TO START A FOOD
BUSINESS IN INDIA
IV. BUSINESS MODEL
V. TECHNOLOGY STRUCTURE
VI. RISKS INVOLVED
VII. FINANCIAL PREDICTIONS

3. THE FOOD
SECTOR IN
INDIA
The Indian Food Service Industry has witnesses a never-
seen-before growth in the recent years and has continued
to expand at a rapid rate.
With more people preferring food deliveries at their
homes and eating out, the food service industry has seen
many local, national and international players enter the
food market in India.
Even with thousands of food service providers spread
across the country, the rising customer demand and
increase in urbanization have paved the way for new food
businesses to enter the market, especially in the organized
food segment in the country.

4.  Increase in number of Urban and Metro households.
 Increase in number of online users.
 Elevated eating-out experience and facilities.
 Entry of International QSRs.
 Rise in demand of niche market- authentic state
food.
 Popularity of Food Courts.
FACTORS THAT LED TO THE GROWTH
IN INDIAN FOOD SERVICE SECTOR

5. MARKET ANALYSIS
3090
3375
3710
4090
4505
Market Size of India Food Service Industry (in INR '00 Cr)
2016 2017 2018 2019 2020

6. ORGANIZED STANDALONE
MARKET SIZE IN FY 2019
INR 106500 Crore

7. CONSUMER PREFERENCE ANALYSIS
Dine-Out
75%
Take-Away
14%
Order-
in/Delivery
11%

8. CITY-WISE
MARKET SIZE
22%
20%
11%
47%
0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50%
Mega Metros
Mini Metros
Other Tier 1 Cities
Tier 2, 3, and 4 Cities

9. STRENGTHS
 Largest growing industry in India
 Removal of entry barriers and easy
registrations.
 Franchise and collaboration
opportunities with established
brands.
WEAKNESSES
 High number of unorganised
businesses.
 Food quality and safety concerns.
 High operational costs.
OPPORTUNITIES
 Demographic, social and economic
changes.
 Government programmes that
support small businesses.
 Growth opportunity with online
business model.
THREATS
 Unpredictable market circumstances.
 Chances of increase in operational
costs.
 Increasing competition from
international brands.
S.W.O.T. ANALYSIS OF INDIAN FOOD
SERVICE SECTOR

10. PROCESS TO START A FOOD BUSINESS
IN INDIA
TYPE OF
BUSINESS
Decide upon the
activities the food
service business
plans to undertake.
COSTS
INVOLVED
Finalise the initial
investment in the
business to manage
the costs.
MARKET AND
DEMOGRAPHIC
SEGMENT
Identify the right
location to start the
business and its
target audience.
OBTAIN
LICENSES AND
PERMITS
Obtain all the
licenses and
registrations to start
a food business.
BUSINESS
MODEL,
VENDORS, TECH
Decide the business
model, connect with
vendors and set up
the technology.

11. KINDS OF FOOD SERVICE BUSINESSES
Cafe
Casual Dining
Fast Food Quick-Service Restaurant
Cloud (Online) Food Delivery
Pub or Bar
Bakery and Patisserie
Fine Dining
Food Trucks/Kiosk
Juice Bar
Ice Cream Parlour
Catering
Home-based Local Food Network
Home-based Bakery

12. COSTS INVOLVED IN A FOOD SERVICE
BUSINESS
LOCATION-
OWNED
LAND/RENTED
STAFF AND
TECHNOLOGY
EQUIPMENT AND
INTERIORS
FOOD COSTS-
INGREDIENTS
LICENSES AND
PERMIT

13. MARKET
SEGMENT
The Indian Food Service Sector is
categorised into:
 Organised Segment
 Unorganised Segment
based on the income and spending abilities
of the customer, and operational scale of
the business.

14. Unorganized Segment includes
roadside joints, stalls, kiosks
and dhabas.
Organized Segment comprises
of Cafés, QSRs, Ice-Cream
Parlours, Casual Dining Restaurants,
Fine Dining Restaurants, Pubs, Bars,
Lounges, etc.

15. LICENSES AND PERMITS NEEDED TO
START A FOOD BUSINESS
While certain key licenses and registrations are
mandatory for all Food Operating Businesses (FBOs)
as per the Food Safety and Standards Authority of
India (FSSAI) Act, 2006, the additional licenses
needed to start a food service business vary for the
different kinds of food businesses.

16. FSSAI
LICENSE
FSSAI License and registration is a 14-digit registration
number that is mandatory for all kinds of food businesses.
The FSSAI license or registration is granted by the FSSAI
Authority and certifies that the business adheres to all the
standards and measures relating to the quality and safety
of the food products.
There are three kinds of FSSAI License/Registration and a
food business is required to obtain the correct license as
per the nature and scale of the business, and the kind of
activities performed by it.

17. FSSAI
License And
Registration
Basic FSSAI
Registration
State FSSAI
License
Central
FSSAI
License

18. BASIC
REGISTRATIONS
BUSINESS REGISTRATION
It is required to register the
business as a Private Limited
Company, LLP, OPC, Partnership
or Sole Proprietorship, and give
it a legal identity.
TAX REGISTRATION
The food business is required
to obtain tax registrations
such as GST Registration,
Professional Tax Registration,
TAN Registration, etc.
TRADEMARK
A Trademark registration is
important to protect the
brand name, logo, slogan, and
identity of the business.
S&E REGISTRATION
Shop and Establishment
Registration must be
obtained as per the state laws
in which the food business
would be situation.

19. ADDITIONAL
LICENSES FOR
A FOOD
ESTABLISHMENT
HEALTH TRADE LICENSE
Health Trade license certifies
that the food business meets all
the requirements and standards
set by the Health Department.
EATING HOUSE LICENSE
The business needs to obtain
the Eating House License if it
plans to serve food and
beverages to its customers on
the business premises.
LIQUOR LICENSE
This license is needed when the
business plans to serve liquor
on its premises, and is obtained
from the State Government.
FIRE SAFETY LICENSE
It is a No-Objection Certificate
from the Fire Department
certifying that the business
has taken all safety measures.

20. ADDITIONAL
LICENSES FOR
A FOOD
ESTABLISHMENT
LIFT CLEARANCE
This is needed when the food
business operates on multiple
floors and has installed a lift for
its customers.
MUSIC LICENSE
Music license allows the
business to play music, songs,
tracks, etc. without the worry
of Copyright Infringement of
the artist’s work.
ENVIRONMENTAL
CLEARANCE
This certifies that the business
activities of the food business
do not harm or cause indirectly
harm to the environment.
SIGNAGE LICENSE
This license allows the
business to display boards,
posters, signs, etc. in the
neighbourhood.

21. BUSINESS MODEL
A food business generally operates as a brick-
and-mortar store, where it prepares and serves
its food and beverages to its customers.
However, for businesses like home-based tiffin
systems, cloud kitchens, home bakeries, online
food delivery stores, and catering businesses,
the most suitable form of business model is a
hybrid business model.

22. HYBRID FOOD
BUSINESS
MODEL
A Hybrid Food business model would include a physical
presence in form of a restaurant, pub, bakery, etc., along
with a digital presence through a web-based or app based
platform. This model requires the business to set up a
sophisticated technology framework to operate physically
and digitally seamlessly.
A food business can also associate with a online food
delivery marketplace to list their business and connect
with the digitally-savvy audience without the need to set
up a comprehensive technology infrastructure.

23. VENDORS
AND SERVICE
PROVIDERS
VENDORS
The business needs to
connect with local vendors
for a regular supply of
ingredients and pre-packed
food items.
A Vendor Agreement is
suggested in order to
protect the business legally.
SERVICE
PROVIDERS
Service providers for a food
business would include
logistics providers when
the business runs a delivery
service; ISPs for running its
online platform;
Technology providers to
develop its digital platform,
etc.
A Service Level Agreement
must be put in place to
protect the business.

24. TECHNOLOGY
When the food business plans to have
a digital presence, run a food delivery
system, to operate solely as a cloud
kitchen, a robust technology
framework is required.

25. TECHNOLOGY
FRAMEWORK
ONLINE PLATFORMS
The online platforms may include a web-based
platform as well as a mobile applications through
which the users can view the menu of the business.
ORDER PLACEMENT SYSTEM
The online platforms must have an order placement
system that allows the customers to place their
orders.
PAYMENT AND DELIVERY
The digital platforms must be able to accept online
payments and have a tracking system that allows the
customer to track the delivery date of their orders.

26. MARKETING
PLAN
Digital
Marketing
Marketing on digital
channels like Food
Forums, Paid Ads, Social
Media, Online Discounts,
etc.
Physical
Marketing
Local promotions
through billboards,
handouts, coupons,
pamphlets, newspaper
ads, etc.
Registration on
Food Apps
Registering with Food
Marketplace Apps such
as Swiggy or Zomato to
reach a wider local
audience.

27. RISKS INVOLVED IN A FOOD SERVICE
BUSINESS
OPERATIONAL
RISKS
HUMAN RESOURCE
RISKS
TECHNOLOGY
RISKS
ALLERGENS AND
DIET-RELATED
RISKS
HEALTH AND
SAFETY CONCERNS

28. FINANCIAL PREDICTIONS
Expected
Market
Growth to
INR 5,52,000
crore by
2022
29% Growth
Projection in
Organised
Food
Segment by
2022
66% Total
Market Share
by Casual
Dining
Restaurants
by 2020

29. ABOUT
CORPBIZ
Corpbiz is a technology-driven online platform that provides legal and advisory
services to businesses, be it small startups or large corporate houses. Corpbiz is a
renowned platform in India for all kinds of business-related services including
new business registration, government registrations, tax registrations, Trademark,
Compliance filings and management, to name a few.
Corpbiz is supported by a team of Chartered Accountants, Company Secretaries
and Lawyers, who hold subject matter expertise in an array of business related
services and can act as your guide and partners for your requirements relating to:
• Business Registration as a company, LLP, OPC, etc.
• Government Registrations such as FSSAI License and Registration, Trade
License, PSARA License, S&E Registration, IEC Registration, and much more.
• Trademark Registration under the right Trademark classes.
• Tax Registration such as GST Registration, Professional Tax/TDS/Income Tax
filing.
• Annual ROC Compliance Return Filings.

30. THE END