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10 Low Cost Business Ideas in Food Industry

The food industry is a good opportunity to start your business in because of the culture and taste embedded in people of India. India is known for its different spices, flavors, and delicious food offerings.
BY Akshay Arora
Feature Writer, BusinessEx
Sep 01,2017

If you are thinking to start a food business then you are going in the right direction, as this industry offers myriad opportunities for a small investment. Food demand in Indian consumer is always high but also competition in each segment of this industry is high, especially in developed cities.

Always remember that one special dish can change the business structure in this industry. Some examples that will help you figure out why having a special dish can be a plus point for your business are:- Keventers is known for its shakes, Dominos is known for its Pizzas, McDonald's is known for its burgers. Even these big brands also initiated at a small level but they had some specialization in their product which helped them achieve success in their business. So initiating your business with some specialization is a key to growth in this industry.

One more factor you must consider while starting your own business is to find a suitable location where the demand and need for your product exists. For example: If you start your own Punjabi restaurant in Chennai then there are high chances that it will be a failure, so market research is essential to run a successful business in Food Industry.

Current Trends of Indian Food Industry

The food service industry is expected to grow at a CAGR of 10% during 2016-2021 and reach Rs. 4,981.3 billion. During 2013 to 2016 the sector grew at 7.7% at stood at Rs. 3091.1 billion in 2016, according to BusinessEx report on Restaurant Industry-2017.

According to National Restaurant Association in India (NRAI), the restaurant industry is expected to contribute 2.1% to the total GDP of India by 2021. According to Indian Food report 2016 by Ministry of Statistics Programme Implementation (MoSPI), in 2016, Indian Food retail market was growing at an average annual rate of 12-13%, in value terms, the food consumption and demand expected to be more than twice by 2025. (Source: KPMG- Indias food service industry: Growth Recipe)

Best food business ideas with low investment are:

  1. Theme-based Cafeteria

This is a new and a good opportunity to start your business. Currently, youth is the major consumer in the food industry and they are more attracted to theme-based cafes. The start-up cost is around Rs.15-25 Lakh and cost may increase or decrease depends on several factors. Some examples of theme based cafes in Delhi are Jungle Jamboree, Friends Cafe, Lights Camera Action, Beer Cafe and much more.

  1. Food truck

This business is based on the go to consumer approach because you dont have a fixed location and keep on moving to different locations. A person having less experience in this industry can venture in this opportunity. Estimated startup cost is Rs.10-15 lakh.

  1. Bakery Speciality Cakes

You will need to understand the target market and their taste in order to run a successful bakery. You will need a location and know consumer demand to run your own successful bakery.

You can also specialize in cakes like wedding cakes, birthday cakes, engagement cakes, and several other designs that will attract the consumers to use your products. It is now a trend in India to have a cake cutting ceremony on every occasion. For this business idea, you will need a retail shop.

  1. Buffet Restaurant

In this type of business consumers particularly attracted due to a variety of food dishes including snacks, proper meal, desert in low cost. Major consumers for this type of business are families. So, right location and proper marketing strategy can change the course of action for your business.

  1. Brew Pub

These are specialized pubs that brew their own craft beers with different customised taste and flavors as per the client request. These are in demand but the person running the business needs experience and proper knowledge about breweries. These types of business are only successful in urban cities in India and major consumers are business and office workforce.

  1. Dessert Shop

From the beginning, dessert shop is very popular. From old generation to youngsters a sweet touch after food is required to complete their meal. These shops are generally sweet shops but now waffle store donut store are also growing their demand as a dessert place to go to.

  1. Coffee Shop

A business with a good ambiance and variety of options in coffee is always preferred by business people to have a meeting. Also, the major workforce in India likes to go to these places to relax and work. A good example would be SOCIAL which understands the need and grabs the opportunity at right time and now has expanded all over India.

  1. Catering Services

For this kind of business, you dont need a workplace and you can operate from home easily. Just market yourself at a small level in the beginning and customers will contact you for your services. Once you have enough funds then expand your workforce and services. This business requires minimal investment of marketing. There is a need for this type of business because of festivals and occasions are celebrated in Indian culture.

  1. Ice Cream Place

Everyone needs to chill from time to time and ice cream is the best solution for most of the people. This business requires less investment to initiate. You can now start your business a retail shop and can expand online via delivery based start-up like SWIGGY to get orders and deliver your product. You can also start an Ice cream truck and use go to customers approach.

  1. Cookies and Chocolates

Demand for chocolates gift hamper or cookies gift hamper always attracts consumers. You can start your operations from your home but need to market yourself first. This is a less investment and always in demand business. It can be a part time as well as full-time business.

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