Fast Food Business In India Cost, Profit, Requirement | SkillsAndTech

Fast Food Business In India Cost, Profit, Requirement | SkillsAndTech

The fast food business in India is one of the most promising and flourishing sectors. In India, an increase in disposable income has, in turn, increased the frequency of dining out. According to another report, the Indian fast food market might grow at a compound annual growth rate (CAGR) of 18 percent by 2020 due to changing consumer behavior and demography, which indicates that India is also sailing in the same boat as that of US.

In the current busy world where leisure time has become more critical, the less time spent working and preparing to eat allows more available time to pursue leisure activities. People who cannot cook at home now only have to click on the Internet to find any local restaurant or fast food retailer that will be more than joyful to serve or deliver the freshly prepared hot meal ready to eat straight to with minimum fuss. Apart from quenching the thirst of so many food lovers across the Nation, these food chains contribute significantly to India’s economy. The positive side of fast food business in India is that it avails job opportunities to millions of people.

Fast food business in India

A fast food business in India is known as a quick-service spot offering dine out or online food services. The reason behind choosing fast food as the business venture is that the fast-food industry is growing tremendously due to innovation and many multinational chains like KFC, Mc. Donald, etc. International chains are considerably expensive, and people prefer them over local chains because they are considered glamorous. Due to this aspect, there is a sudden increase in India’s fast-food chains and worldwide. The demand for fast food in India is popular amongst all ages as it offers a quick bite and is also pocket friendly. Running a fast food business from an entrepreneur is highly feasible and rewarding. The demand for fast food shall never reach the saturation point, and it requires low-cost investment to start the fast-food business in India. The essential edge given to India’s fast-food industry is that it a recession-free business. So if any significant or necessary changes occur in the country’s financial situation or economic policy, then there is no way it will affect the fast-food business in India.

Market potential

Firstly all you need is to analyze the market of fast food business in India and study the customers’ preference for any particular area where you want to set your business up. An entrepreneur must try to opt for a fast-food chain different from existing fast-food chains in the area. A variety of products will keep you afloat in the competition and be a significant point of attraction for your customers. After a thorough study, make a business plan for your reference and check on the work as it progresses. A proper business plan will also fetch your investors and build trust in the projects to provide you the loan.

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Business plan

The fast-food business in India requires a full-fledged business plan PPT that shows a pathway of your long term business strategies, goals, visions, etc. It does not need a vast sum to invest in your fast food business plan. The entrepreneurs are not required to go out of the way to establish the business. They need to make a business plan that enrolls all essential factors like running the business, total expenses, source of finances, acquiring necessary licenses and registrations, working on staff, marketing, branding, etc. In short, all you need to ponder upon is providing quick service, a decent environment, and quality food. You are also required to lay down your business’s vision or mission to treat it as a milestone.

Acquiring a place for Fast Food Business in India

The fast-food restaurant location must be in an area that is quite populated and often visited by the people. If the fast-food site is a place far off from the city’s hustle-bustle, your restaurant won’t receive much recognition and popularity. Keeping the target audience in mind, one must try to be close to it. A restaurant’s location should be on the ground floor or lower. A space of about 500 square feet is preferred to accommodate the kitchen and counter with no congestion. One must check for proper electricity, gas, security and safety, water, and ventilation in the place.

Financial Assistance

The fast-food business in India runs successfully with a low-cost investment. Before setting up a proper business plan for the fast-food industry, one must look into the various sources to efficiently avail the finances. Though the funds utilized here are meager, adequate finance management is necessary to ensure proper business operations. Hence, before initiating, one must look into all possible sources of income one can dig.

Form of Company

To acquire a legal entity for the fast-food restaurant, one must give heed on what form of the company he wants to establish. An entrepreneur can get their restaurants registered as a sole proprietorship, a partnership, a limited liability company, or corporation—the type of corporation you choose to play a significant role in availing the successful business operation benefits.

Insurance Cover for Fast food business in India

Insurance acts as a safety valve for India’s fast-food business and protects it from uncertainties that might come from its day-to-day operations. Insurance is a savior for any unseen casualty that might arise at any unexpected moment.

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Mandatory Licenses and Registrations for Fast Food Business in India

There are multiple licenses and permissions that one might require before establishing a fast food business in India. There are numerous registrations and permits in our country if you are willing to establish a small or big fast-food chain. Nowadays, applying for an online license is more of a cakewalk with the least complications. A business entrepreneur might require getting in touch with various local authorities for acquiring specific permits to carry on business smoothly.

We shall state a few essential licenses mandatory for the cause:

1) Registration of Firm:

You may start the small to medium Business either a Proprietorship or Partnership Firm.

If you are starting this Business as One Person Company, then you have to register your firm as a proprietorship.

For Partnership operation, you have to register as a limited liability partnership (LLP) or Pvt. Ltd. Company with Registrar of Companies (ROC).

2) GST Registration:

it is mandatory to get the GST number to run the business; you need to apply for the GST registration.

3) Trade License:

obtain trade license from local authorities

4) MSME/SSI Registration:

this MSME/SSI Registration will help you to get schemes and facility for the business offers by the state government

5) BIS certification:

BIS has mentioned the specific quality standard for Business. ISI specification for the sanitary napkin is IS 5405:1980.

7) Trade Mark:

you can secure your brand with trademark registration

8) IEC code:

IEC code is essential for the export of the product

9)Safety and Standard Authority of India (FSSAI):

This business is categories under food processing business; therefore, you must have to take the FSSAI license.

10)EPF Registration:

Employees state insurance which is an insurance scheme for workers.

11)ESI Registration:

Employees provident fund is compulsory for the business where more than 20 employees are working.

To comply with the above processes and registration, one might need any legal expert who would help in absolute legal compliance to meet industrial standards. 

Start-Up Expenditure

In setting up any fast food business in India, the amount or cost of business will depend on the approach you want to undertake. If you intend to rent a business place, you would need an ample amount of capital as you would need to assure that your workers are taken care of. The tools and equipment used are nearly the same cost everywhere, and any difference in prices would be least.

The detailed cost analysis for establishing a fast food business in India is as follows:

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  • Rent – The rental cost for a space of the appropriate size in a suitable locality should be about Rs. 80,000 to Rs. 1, 00,000 monthly. It is suitable to be prepared to submit one or two months of advance payment as well.
  • Kitchen equipment/ raw materials – Initially, it can cost you approximately Rs. 2.5 Lakhs to set kitchen with proper kits. Once set to commence operations, you will need to spend money on the raw material you’ll need every month, such as vegetables, oil, and spices.
  • Cost of labor – Well trained staff is mandatory for the successful running of the business. Approximately Rs 1.5 lakhs monthly is spent on workers, including the chef, delivery guy, chef, head chef, waiter/waitress, and manager. It includes uniforms and other facilities for their safe working environment.
  • Licensing – Licensing can cost you around Rs.30,000.
    Food Technology – Advancements in the food sector domain can cost you around 25,000 to 30,000 monthly.
  • Marketing – Rs 40,000 approximately can easily be spent for marketing purpose.

Branding & Marketing

Selecting the right brand name is an essential part of establishing a fast food business in India. Good brand names can significantly act as a successive point for a product or a company. Before having a grand opening of fast food business chain, market about your restaurant through social media platforms. It is advisable to invite any celebrity or known face for the inauguration so that the opening will be grand to let the people notice you and attract a significant customer set. Distributing pamphlets to the nearby locality houses and between newspaper pages, where you can offer the first 50 or 100 or so customers some gift voucher or discount or things to attract customers, is an efficient trick.


Considering these essential points, one can confidently align to kick start the fast food business in India with no second thought. The government is also favoring small business entrepreneurs through jaw-dropping schemes and benefits.

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