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Food Business Ideas With Low Investment In India

Posted on
Oct 04, 2021
Food Business Ideas With Low Investment In India

Food is a vital component of the day and life in general, regardless of the occasion or situation. Because of its significance and the flavours it incorporates, a restaurant that offers delicacies at an advantageous location might provide a high return on investment.

As a result, in today’s market, investing in establishing a restaurant, café, or even a dhaba may be an exceptionally lucrative business opportunity. You can begin with a modest food establishment and grow your business gradually.

According to FICCI research, India’s Food Services Market was worth around Rs. 3.37 crore in 2017. It is expected to reach Rs. 5.52 crore by 2022 at a CAGR of 10% in these five years. As of 2021, it is reasonable to assume that this is one of the few industries in the country that has been impacted only slightly by the present economic recession.

Though there are numerous variables to consider when opening a restaurant, a profitable deal can be sealed if they are addressed properly. However, like with any other business, potential restaurateurs must consider the significant investment required at the outset. This is where a business loan for a restaurant comes into play. A restaurant business loan remains the most important determining element, which may now easily swing in your favour.

Best Food Startups Ideas to Try in 2021

Here are some of the innovative food business ideas:

Restaurant/Cafe/Coffee Shop

Restaurants and cafes are the most secure options for any F&B (food and beverage) startup. It requires extensive and precise preparation, such as choosing the location, arranging supplier logistics, engaging high-quality professional chefs, etc. Once these are in place, restaurants can earn a lot of money with no/minimal inputs other than daily maintenance.

With the startup wave enveloping the country, the restaurant sector has been significantly impacted. It has inspired many people to establish their enterprises. Both experts and home cooks are now channeling their passion for food by entering the restaurant business.

You need between Rs. 15 and 20 lakh to open a café. And if you provide a stylish dining environment and high-quality cuisine, you may attract locals, office workers, and students. The best part is that you may receive a business loan for coffee shop of up to Rs. 7 lakhs to slowly and gradually develop and establish your business.


Everyone enjoys a delicious cake or pastry. Setting up a bakery may be a very profitable business idea if done correctly. Bakeries can also distribute baked products via online orders, social media, or web portals, which takes little expenditure. This means you make huge profits with little to no investment other than the expense of establishing a business. You can apply for a business loan for a bakery.


If you believe your management and people skills are suited to F&B services, you may offer a wide range of catering services, which might help you earn significant returns on nearly every customer added. Catering also boosts the overall business exposure and helps establish commercial relationships.

Catering in India is now an essential element for the success of events and social gatherings. It is one of the fastest-growing industries, with demand rising across the country.

Food Trucks

Pop-up restaurants have grown in popularity in recent years, helping deliver a range of regional fast foods and fancy cuisines worldwide. In line with this trend, fast food trucks are quickly expanding in India, particularly in urban areas such as Delhi, Bangalore, and Mumbai. This is due to the inexpensive nature of food trucks, which means lower starting costs, easy maintenance, need for fewer employees, and suitable hands-on operations.

India is a late starter in the food truck industry, but we are catching up. There is a vast potential in this kind of business because public demands change with time.

The food truck industry essentially delivers faster, provides healthier food, and is far less expensive than other eateries. It is one of the upcoming trends, and if done correctly, it may lead to significant commercial success. Food truck licenses in Mumbai can be obtained online from the relevant authority.

Homemade Food Business

This might help you make money rapidly. Today, a trend of selling homemade meals to consumers has emerged due to one’s love and enthusiasm for food. Nothing beats a homemade meal service if you can invest between Rs. 50,000 and 1 lakh and establish a food business. All you need is an online MSME registration, GST registration, and a food safety license.

Ice Cream Shop

We all scream for ice cream. Everyone enjoys ice cream, and also the brain freeze that results from eating it too quickly. Opening an ice cream store is a highly realistic choice since it attracts consumers from around the city and at nearly any time of the day or night. Every child’s favourite food is ice cream, and because summer lasts the longest in India, ice cream is perhaps the most profitable business.

The ice cream industry has experienced rapid innovation in recent years. Previously, wayside carts were popular, and children and adults frequented them. Ice cream parlours, where individuals may eat ice cream at leisure, are becoming increasingly popular these days. An ice cream parlour license is mandatory.

Juice Shop/Milkshakes

Juices and milkshakes are staples of a morning diet and during the summers. A juice store may perform exceptionally well in generating income with very little expenditure. Purchasing ingredients such as fruits and milk to sell high-quality organic juices and milkshakes at a favorable site requires little expenditure

Farsan/Namkeen Shop

Making farsan/namkeen at home is time-consuming for most individuals. When inviting guests for parties and welcoming them to their homes, people prefer to buy these food products from shops that sell their favourite namkeen or farsan. Setting up a farsan/namkeen shop can significantly increase revenues for a food business.

Sweets Shop

In India, it is customary to offer sweets to relatives when visiting them or meeting friends after a long time. People frequently buy sweets on the move and in large quantities. Thus, establishing a business selling sweetmeats at a well-planned site can generate significant profits with minimal effort on the owner’s part.

Dairy Shop

Milk and milk products, such as paneer and cheese, are essential foods in India. Therefore, a dairy would never go out of business. Whether you are storing items from other dairy aggregators such as Amul or supporting local/self-made dairy products, it is safe to assume that these stores will attract both existing and new customers every day and at all times of the day.


Due to the popularity of the food business, there are several food business concepts and activities you may consider for your F&B venture. Choose cautiously to best fit your venture’s needs, the demographics of your location, and the most recent technological advancements to automate operations. However, before you get started, an F&B company must obtain legal authorization, namely an FSSAI license. The FSSAI license fee can be paid online.

Finally, there are a few things you should know before starting a food business in India. First, from legal requirements to infrastructure investment, conduct internet research on FSSAI licensing, GST registration, and MSME registration process. Don’t be concerned! Allow online MSME loans to manage your budget and protect your business goals.

Frequently Asked Questions

How much money is needed to establish a food business in India?

In India, the cost of opening a restaurant ranges from Rs. 5 lakh to 1 crore (could be more or less, depending on the location, type of food, customers, and costs). You can get a business loan if you don’t want to invest your own money.

Is it profitable to own a restaurant in India?

Restaurants are one of the most popular food business ideas since they need little investment and give significant returns.

Is selling home-cooked meals permitted?

Items cooked at home are typically not permitted to be sold in stores or restaurants unless the home kitchen has been licensed. Some states permit the selling of food products such as sweets and jellies via the internet. Others enable customers to buy straight from your house. The amount of money generated by selling handmade cuisine varies from one state to another.

Is a license required to sell homemade food products in India?

Yes, if you want to sell homemade meals online in India, you must register with the FSSAI. If you’re doing it on a small scale, an FSSAI registration will suffice, but larger companies will need a license.

What is an MSME Loan?

It is a loan that any MSME business can acquire to expand its business. It would entail purchasing machinery, equipment, or raw materials, fulfilling working capital requirements, investing in fixed assets, paying rent, salaries, and other daily or monthly expenses, managing cash flows, and making other operational financial provisions. These loans are available at competitive interest rates and on flexible repayment terms. MSME loans can be extremely helpful in the food industry business.

How to apply for an MSME loan?

In today’s digital age, the best approach to apply for an MSME Loan is online. Applying for MSME loans online is the most convenient method that takes fewer than five steps and minimal to no documentation. The disbursement of loans happens within days. Applying for a loan has never been easier, with simple steps and the application submitted with a single click.

Guide to FSSAI Food License Registration Process, Eligibility, & Documents

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