Top 7 Profitable Fast-Food Business Ideas
Profitable fast-food chains are the outcome of urbanization and disposable incomes. In India, these features were evident in the middle classes of the 1990s.
Taking these as their cues, popular fast-food chains like McDonald’s and KFC entered India with their yummy, ready-to-eat snacks. People stood in long lines to bite into burgers and fried chicken, not wasting a moment thinking of what those ingredients would do to their health.
Today, so many years later, the fast-food scenario has made inroads in India's Tier 2 and Tier 3 cities and towns. In 2020, the Indian market was pegged at Rs. 4,236 billion in 2020, according to Edelweiss. In the same year, the market size of fast-food joints or Quick Service Restaurants (QSR) was Rs 348 billion. In 2021, the global food market stood at USD 296.6 billion.
The Fast-Food Scenario in India
Growing appetites, more food curiosity, disposable incomes, and fast-paced lifestyles in India have contributed to the growth of the fast-food business. Currently, it is the most in-demand business due to the growing need for online food delivery, a trend made more common due to the recent pandemic.
Even though the worst of the pandemic is behind us, the online delivery model continues to be the delivery style of choice. This has given the food delivery business a fillip and will only push up its graph in the coming years.
So, if this encourages you to enter this dynamic and lucrative field, set up your shop. If you establish your own fast-food joint, truck, or stall, you’ll have to plan it well, right from your menu to the location, timings, etc.
7 Types of Fast-Food Services You Can Start in 2022
In India, the scope of food sales is huge and varied. And with people exploring new and different cuisines the opportunity for new entrants in the food business is tremendous.
People love eating street food, whether occasionally or every day. The past few years have thrown up several types of fast-food outlets in India, each known for their superb taste, great packaging, and speed of delivery.
If you want to get into this lucrative business, you can choose from the following types:
1. Quick Service Restaurant (QSR)
It doesn’t cost more than about Rs. 5 lakhs to Rs. 10 lakhs to set up a small QSR in India. Ensure that it’s near a train station or bus stop so you get customers. Hire staff, have a pleasing environment and healthy food and you’re all set to earn big bucks.
Standard food industry licenses apply.
Here’s a short but most sought-after fast-food list at India’s QSRs:
- Burgers
- Fried Chicken
- Sandwiches
- Subs
- Coffee
- Donuts
- Cakes
- Samosas
- Kachori
- Pani puri
2. Food Truck
The idea of selling fast-food from a truck modified to be a shop on wheels is superbly innovative and has caught on very well. Business World reports that it would cost about Rs. 10 lakhs to Rs. 20 lakhs to set up such a business.
To set up this business, you need to have a license. However, the two factors that drive this business are its low investment and access to several locations.
3. Bakery
If you’re a good home baker of cakes and other fast-food items, you should consider setting up a small bakery. Be the best neighborhood baker and attract people you already know. They will try out your cakes and spread the word, giving you free publicity. You can also advertise in the local papers and on social media.
It would be best if you had a huge investment to start this business. Also required are a license and baking equipment.
4. Fast-Food Joint
You might like to take a franchise of one of the big multinational fast-food manufacturers like McDonald’s, Subway, Domino’s, or KFC. After working in any of these companies’ outlets for at least two years, you can think of venturing on your own.
Getting licenses may be an uphill task, but not impossible. Besides this, hire the right staff, build an efficient team and set up shop in a good location. Promote your food at different venues, apart from the store, and see how your money graph rises.
5. Selling Papads, Snacks, and Pickles
Perhaps you can make a few types of snacks, papads, and pickles. Now, you can make these commercially and sell them on an online store so that people all over the country can avail of them. Thus, your business will grow fast, and your products will reach far-flung parts of India.
This business requires minimal investment, and you can work conveniently from the comfort of your home. Pay special attention to the delivery mode, web management, and packaging. Advertise your products regularly and offer schemes and upsells.
Also Read: Successful Food Business Ideas in India
6. Fast Food Dhaba
A combination of the Indian traditional wayside eateries and the fast-food culture, the fast-food dhaba has come a long way and made a lot of money. Hot favourites are served on traditional plates and other containers in a rustic environment. Folk music plays in the background and waiters wear traditional colourful costumes. People love the ambiance and the superb food. The combination is heady and the perfect recipe for good money.
7. Food Carts
This is by far the most basic of all fast-food models in India. Here, you have a cart full of all that you want to sell, along with a stove, and frying pan. This is most commonly seen in India and also very profitable due to its low overheads.
How To Start Your Fast-Food Business In India
Getting into the fast-food business in India deserves a lot of thought and planning. One needs to research the market to spot the gaps and fill them. The location of your stall, food truck, or corner shop is equally important as you will serve that locality's people.
There are several parameters to discuss, so let’s dive in.
1. Which Fast-Food Business Model Suits You Best?
First, study the market and identify your place in it. It’s also a good idea to speak to someone who has made his mark in this business. He can give a first-hand feel of what works and what doesn’t.
2. What Kind of Outlay Does This Business Demand?
To operate a fast-food business, you will need to budget for the following:
- Rented space
- Water
- Refrigerator
- Kitchen gadgets
- Stove
- Utensils
- Raw ingredients
- Groceries
- Furniture like tables, chairs, and counters
- Printed menu cards
- Staff
To be able to pay for the above, you will need Rs. 2 lakhs.
3. Get the Required Licenses
To open a fast-food joint, you must get a permit from the Food Safety and Standard Authority of India (FSSAI). Besides, register for TIN with the Commercial Tax Department and apply for GST registration. If you're renting a place, your rent may include costs for gas, electricity, and water.
4. Hire Staff
Hire efficient and experienced staff who will help you keep the wheels of your restaurant well-oiled and running smoothly.
5. Plan Your Menu
Check out the fast-food that’s already being offered in your area. Ensure you don’t provide the same. Consider your consumer base's demographics and dietary preferences. Time your store hours to coincide with those of your prospective customers. Decide on the best rates for your products.
Given below is a table of the most popular fast-food items sold in India.
Most Popular Fast-Food Items In India
6. Advertise Your Business
Advertise in the local papers, TV and radio, hoardings, pamphlets, posters, and local radio. Go to a good advertising agency and ask them to launch a campaign for your shop opening.
7. Design the Interiors Yourself or Hire a Professional
You may or may not want to decorate your interiors if you don’t have seating for your customers. Since this is a new venture, keep your décor simple but welcoming. Fix a budget for it and try not to go overboard.
Conclusion
You are ready to start the business if you have followed all the steps concerning opening your fast-food eatery. However, remember that making profits takes time, so persevere, and you will achieve the success you dream of. With the popularity of these eateries growing, there will always be fast food near me.
FAQs: Fast Food
Q. What should you consider when launching a fast-food business idea?
Ans. Examine the investment model, the possible returns, the model where you can offer your expertise, and ways to monetize the business.
Q. Is the Indian food truck business lucrative?
Ans. The food truck business in India is not regulated, so this could present some risks. However, food trucks have become very popular with young professionals. This business will need standard permits for the fast-food industry.
Q. How do fast food joints attract customers?
Ans. Fast-food companies attract customers by offering crazy deals, using TV ads, pamphlets, hoardings, and posters. Buy one, get one free is commonly used here, along with a free drink. This makes the deal unmissable.
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