How To Start Small Tiffin Center In India?
In today’s fast-paced world, cooking food at home has become a burden for youngsters. They do not want the hassle of cooking food and cleaning the utensils. As the median wage of employees is increasing every year, more and more people are eating outside.
The demand for quality and tasty food is increasing by each passing day creating many opportunities in this area. Many people are looking to start Tiffin Centers as full-time/part-time business due to its low investment costs and high-profit margins.
In this article, we talk about everything you need on how to know to start a successful Tiffin center in India including licenses and how to obtain them.
To start a small Tiffin Center in India, we need the right location, good cook, cooking items, permissions/licenses. Let’s discuss each of them one by one.
Choosing Right Location for Tiffin Center
The vital piece is the location of the Tiffin center. This factor alone can make or break this business.
Choose a location where there are many young employees/students. Areas with a lot of Graduate/ undergraduate colleges or with many software/hardware companies are preferable. Make sure your Tiffin center is visible and accessible easily from the main road.
Make sure you have clean surroundings at your Tiffin Center. Lack of clean water to drink or wash hands is a big no-no!. It is highly recommended to set up your Tiffin center in shade.
Consider the existing hotels and canteens while deciding on the location. They are the competition for your business. Taste their food and analyze their products. Understand what they lack and see how your food is compared to theirs. Check out their sales and prices, this gives valuable information regarding price and profits.
To learn more, check out 14 things to consider when choosing the right location for business
Chef and Cooking Items for Tiffin Center
Hire a good cook within budget. See how he handles a large volume of orders. The speed of serving food is a key aspect for Small Tiffin Centers.
Decide what tiffins you are going to serve based on your competition. Firstly, you should serve your competition bestseller and then a few more additional new items.
After that, buy/rent essential items for cooking food and also serving such as stove, gas, vessels, plates, spoons, glasses, etc.
You also need an extra person to collect money, serve customers, wash used plates and cutlery, etc. Hire according to your budget, make sure your employees are loyal and trustworthy.
Permits and Licenses for a Tiffin Center
Although permits are must, you can start Tiffin center and then apply for required licenses. These licenses take 1-2 months to get issued.
It is better to start your business and then apply for these licenses. The licenses you require are
1) Shop and Establishment Act License
In India, respective State governments labor department issues Shop and Establishment Act license. Typically, you will need Adhaar Card, PAN card, and the application fee is Rs.100 -150 (Depends on the State).
Use this link to visit your respective state labor department website.
Visit your states labor department website and follow the process.
2) FSSAI License
You need Basic FSSAI License if the business revenue is less than 12 lakhs rupees per annum. The application fee is Rs.100 per year and takes around 2 months to get processed. You will have to renew it every year by paying Rs.100. This is what you should apply for at the start of business.
When your income crosses 12 lakhs per annum, you should upgrade to State FSSAI license. It costs around Rs.2000 to 5000 depending on the state you live in. It has to be renewed every year by paying the appropriate amount.
You will need Photo Id with Address Proof for the application process. You can apply for an FSSAI license here. You can this same link to renew your FSSAI license or check your FSSAI application status.
3) Trade License
State government issues this license saying that your business is legal. This license proves that no illegal activity is taking place in your business establishment.
You can get it from your Municipal Office or you can apply for it online. The application fee is Rs.30.
To apply visit this Trade License LInk and enter your state or region in the advanced search section and click on search. This gives a direct link to your respective regions application website.
You need Id Proof and Lease agreement (if you have rented an establishment) to apply. It typically takes 7-10 days to get processed. An agent may visit your business and examine it.
4) Fire Brigade License
Every state fire department issues these permits, visit their website, and apply. You will get to approved within 15 days.
This permit says that your business establishment is not a fire hazard.
5) Society NOC
Businesses only need this if your business is in closed colonies, apartments, etc. Tiffin Centers next to the main road does not require this.
This form states that the residents in the area are okay to have your business running there.
As stated earlier, start your business right and apply for licenses later on. Place these licenses in your Tiffin center such that everyone can see them. This increases trust in your customers.
Running a Tiffin center is a highly dynamic endeavor. Be open to suggestions and feedback from your customers. Adapt to the situations and keep going.
To learn more about food business, check out 29 mistakes new restaurant owners make.