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How to Start Fast Food Business in India (Business Plan & Profit)

Updated: Sep 20

Consider opening a fast food restaurant if you want to launch a business in the food sector. Starting a fast food business is not a bad idea because people currently prefer them to save time. Fast food is a type of food that is served quickly after being mass-produced. You have the flexibility to enter the fast food business because it is mostly a customer-driven sector, and you can pick your own degree of competition!


In India, this industry is expanding at a rate of 40% each year, and several well-known local and international players are competing to claim the largest market share.


fast food business

How to start a small fast food business in India?

A fast-food restaurant, also known as a QSR (Quick Service Restaurant), does not require customers to wait and dine at their location; instead, they can simply order and pick their things; as a result, the demand for workers is increasing for fast-food restaurant cultures.


If you are wondering how to start a small fast-food business in India, then you should know that opening a small fast-food restaurant doesn't require a big investment. It's not necessary to go out of your way to make preparations for stunning décor or exquisite tableware. Finding and training new employees is much simpler. Additionally, you don't need to stress about hiring a chef that attended a top culinary institute. You only need to concentrate on offering prompt service and delicious meals.


The fast food business has the added benefit of not experiencing economic downturns as regular restaurants do. Fast food establishments are not as expensive as fine dining restaurants and luxury cafés. As a result, unlike their more expensive competitors, a significant change in economic policy or the country's financial status has little impact on these eateries.


By taking over a larger chain's franchise, which will provide partially cooked food and supplies as well as standardized materials, you can launch your own fast food business. Or you could select a food truck or a fast-casual eatery. There won't be much table service at a fast-casual restaurant. You could even start a fast-food restaurant with the following menu items: burgers, fries, fried chicken or fish, pizza, ice cream, etc.


To start a small fast food business in India, an aspirant restaurateur can follow this fast food center business plan in India:


1.Market Research - Study the market and the consumer preferences in the region you want to serve first. In order to provide them with food and services, they would enjoy, research your target customers and pick the appropriate niche.


2.Make a business plan - To oversee the progress of the work, a well-thought fast food center business plan in India is required. Additionally, it will help you in gaining investor funding or bank loans.


Also, read - 12 Food Business Ideas in India [With Low Investment]


3.Locate a space - Your fast food restaurant should be situated in a busy area, such as a market, to attract customers. The location should have access to electricity, gas, and water. There must be nearby access to grocery supplies. The proposed kitchen space should have proper ventilation to allow exhaust smoke to exit.

4.Create the outlet - You must correctly plan your food outlet after reserving a space for it. Fast food restaurants are common gathering spots for families, thus they should be kid-friendly. Along with the food you'll serve, the cutlery, tables, and seats, as well as the background music you wish to play, are all crucial.


5.Smart Hiring - Hiring experienced staff, such as accountants, chefs, cleaners, managers, and waiters, is one of the most important factors for the efficient operation of your business. Your staff members should preferably have previous experience in the food service sector. Employee happiness contributes to a prosperous business. You should try rewarding new hires with bonuses in addition to giving them the necessary training.


6.Include wholesome foods - It is a good idea to provide healthy options on the menu, such as fresh fruits, salads, white and grilled meat, etc., in addition to the typical fast food. This will reflect an effort to appeal to consumers who are concerned about their health.


Also, read - What is Menu Engineering? Increase your Restaurant Profit


7.Technology - POS is the most important and essential component of a successful fast food corner business plan in India. It is important for any restaurant or food outlet's successful operation and management. Pick a customized point of sale system that is designed with quick-service restaurants in mind. You need to include hospitality point-of-sale systems to guarantee accuracy and facilitate quick service. This allows the kitchen staff to see orders placed at the front desk.


Cost of running a fast food business in India

Particularly when compared to fine dining restaurants, quick service restaurants don't require a big investment. You don't have to spend a lot of money on décor or opulent seating, but you do need to take into account some fundamental factors like leasing prices, staffing costs, and maintenance costs. With an investment of 3-4 lakhs, you can start a small fast food business in India. Although this number might appear unbelievable, it is actually achievable! This is how:


Rental Costs

To fit your kitchen and counter, you need a space of roughly 500 square feet. Keep the counter and serving zone to 100 square feet and use the rest of the space for sitting. It should cost between Rs. 40,000 and Rs. 50,000 per month to rent a place this size in a decent area.


Kitchen Equipment

Don't skimp on quality when it comes to the utensils you use. Setting up your kitchen can initially cost you about Rs. 2.5 Lakhs. Once operations are in place and running, your only ongoing expenses will be for raw ingredients like vegetables, oil, and spices.


Marketing

Marketing your fast food business is a vital step. Next, create a theme for your menu and restaurant website that aligns with your brand image. Make sure to collaborate with food bloggers and Instagram influencers. Millions of people can discover about your recently launched little fast food restaurant this way. Make sure your eatery is featured on websites and GMB where customers can submit reviews and ratings for various meals. You should prepare to invest roughly Rs. 40,000 on marketing while you're just getting started.


Labor Cost

You need to have a well-trained crew who can manage the ups and downs of running a restaurant. A minimum of three or four employees must be present at all times in a small fast food establishment. At least two chefs who are familiar with the food and culinary tools as well as how to manage the kitchen autonomously are required. Typically, a chef makes between Rs. 14,000 and Rs. 15,000 per month, while the others who work with the chefs are paid between Rs. 6,000 and Rs. 8,000 per month.


Licensing

If you are thinking about how to start a small fast food business in India, even a small one, you must have several licenses. A food license from FSSAI is required. Additionally, a license for an eating facility must be obtained from the city's police commissioner. Within the first 30 days of operation, you must also get a Shop & Establishment License for your fast food establishment.


Two extra licenses are required to show that your business has no negative environmental effects: a Fire Safety Clearance and a Certificate of Environmental Clearance. You should have a budget of around Rs. 18,000 for licensing overall.


Also, read - What licenses are needed to start a restaurant in India


Food Tech

One of the most vital factors of fast food center business plans in India is having a speedy and effective point of sale system. Every daily transaction is recorded, and all of the data entered is properly saved. Additionally, this data may be used in the future to evaluate performance or develop client loyalty programs. Today's POS systems for restaurants can also be accessed via a mobile device from various locations. You should expect to pay between Rs. 25,000 to Rs. 30,000 for this overall.


Furniture and Fixtures

You don't need to put too much effort into making a tiny Quick Service Restaurant seem upscale. Instead, you should make sure to select solid furniture for seating and the correct amount of lighting for the place. Don't bother looking for lovely lamps or accessories. Make sure the color scheme you choose is straightforward and has a proper quick bite experience. You must budget between Rs. 20,000 and Rs. 25,000 for furniture and fixtures.


Wrapping Up

For starters, fast food is far less expensive than fine dining or five-course meals. Next, it normally doesn't take long to prepare, and guests are handed their orders in a couple of minutes. It's ideal for getting a quick snack at a small fast-food restaurant because the cuisine is delicious and reasonably priced. It can be very satisfying to run a fast food establishment in terms of profit margin. So, don't think twice and get started with this easy fast food corner business plan in India.

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