How To Make Your Food Business Legal This Christmas: A Complete Guide

In today’s era, every budding entrepreneur wants to start a Food Business during Christmas of his/her own. The reason behind the same is the lucrative and rewarding feature of this sector. Moreover, it shall be significant to state that starting a food business during the festive season, especially during Christmas, drives the sales of almost half a year.

In this blog, we will discuss the concept, benefits, and process to start a food business during Christmas.

Growth of Food Businesses in India

1. According to a report published by “IMARC”, the Indian Bakery Sector is projected to cross the market capitalization threshold of US $882 million by the end of 2024. Also, this sector will have the Compound Annual Growth Rate (CAGR) of 12.5% from 2019 to 2020;
2. Based on the report published by “Current Market Insights”, the Indian Alcohol Industry is expected to cross the threshold of Rs 5482851.3 billion by the end of 2027. Moreover, the same is expected to reach CAGR (Compound Annual Growth Rate) at 7.8% for the period starting from 2019 to 2027;
3. As per the report published by “STATISTA”, on 16.10.2020, in India, the annual alcohol consumption is projected to reach 6.5 billion litres by the end of the year 2020. Moreover, the revenue generation from serving alcoholic drinks will cross the US $1371385 by the year 2020. Also, this sector is likely to grow annually by 8.7% CAGR for the period 2020 to 2023;
4. According to a report published by “TechSci Research”, the coffee shop business is anticipated to grow at a CAGR of more than 11% by the end of 2021;
5. Based on a report published by “Techno Park Advisors” the Indian Café Sector forms 11% of the whole Indian Food Sector;

Reasons to Start a Food Business During Christmas

The main reasons to start a Food Business during Christmas are as follows:

1. Provides Plenty of Opportunities.
2. Attracts Potential Customers through Festive Decorations.
3. Various Schemes, such as Buy One Get One, Couple Entry, Girls Night, Happy Hours increases Customer Reach.
4. Opportunities for Hosting Christmas and New Year Parties;
5. High Demand for Bakery Items, such as Cakes, Biscuits, Cookies, Muffins, Puff Pastries, Breads, etc.
6. Increasing Influence of Western Culture.

Checklist to Start a Food Business During Christmas

The factors included in the checklist to start a Food Business during Christmas are as follows:

1. Draft an Effectual Restaurant Business Plan;
2. Choose an Eye-Appealing Location;
3. Prepare a Mindful and Sensible Budget;
4. Analysis On-going Market Trends;
5. Plan a Cost-Effective and Eye-Catchy Food Menu;
6. Delve into Your Competitors;
7. Consult Experienced Professionals for Registrations and Licenses;
8. Invest in Robust and Sturdy Kitchen Equipment;
9. Hire Experienced and Qualified Staff;
10. Design and Characterize Outlet;
11. Market and Endorse Outlet;
12. Build an Attention-Grabbing Website;
13. Implement POS Mechanism;
14. Confirm Timely Maintenance and Cleanliness;
15. Assure Speedy Redressal of Customer Grievance;

Licenses Needed to Start a Food Business During Christmas

The licenses required to start a Food Business during Christmas are as follows:

Business Registration

A person who wants to start a Food Business during Christmas requires to acquire business registration based on the type of food outlet.

For instance, if a single person wants to set food outlet as a partnership firm, then, in that case, he/she requires to apply for Partnership Firm Registration under the provisions of the Indian Partnership Act 1932^[1].

FSSAI License

It shall be significant to note that to start any type of food outlet in India, the concerned FBO (Food Business Operator) needs to apply for Online FSSAI License prior to commencing its business operation.

Eating House License

Another significant license for starting a Food Business in India is to acquire Eating House License from the Licensing Police Commissioner of the concerned state.

Health or Trade License

For this license, both the Municipal Corporation and Health Department of the concerned state requires to issue Trade License to start a food business in India.

Fire Security Certificate

The main reason for acquiring a Fire NOC or Fire Security Certificate from the Fire Department is to confirm that the premise used as the food outlet has the proper installation of Fire Extinguishers and other Safety Measures.

Shop License

The FBO needs to apply for Shop License or Shop and Establishment License with the authorities to make sure that the rights and interests of the staff employed are duly protected.

Trademark Registration

Although it is not mandatory for a food business operator to obtain Online Trademark Registration, but the same is advised, as it will protect the brand name, logo, design, etc., from duplication and imitation.

Music License

If the owner wants to play songs or arrange live performances, then, in that case, he/she requires to obtain Music License from IPRS (Indian Performing Rights Society).

Certificate of Environmental Clearance

The proposed food owner needs to obtain anCEC (Certificate of Environmental Clearance) from the Ministry of Environment and Forest to confirm that the operations of said outlet do not affect the environment.

Pollution Certificate

To confirm that the cafe or the food outlet is not harming or affecting the environment in any manner, the proposed food business owner or FBO requires to acquire Pollution Certificate from the Delhi Pollution Control Committee (DPCC).

Insurance

In today’s time, Cafés or food outlets need to mandatorily apply for certain insurance policies, such as Product Liability, Fire Policy, Public Liability, etc.

GST Registration

The proposed owner requires to apply for GST Registration if the Aggregate Annual Business Turnover of the outlet exceeds the threshold limit of Rs. 40 lakhs and Rs. 20 lakhs for special states.

Conclusion

In a nutshell, if a person or a group or persons wanting to start a food business during Christmas, and have comprehensively read this article, then, in that case, he/she have already started their journey to have a food outlet in India.

Moreover, the licenses stated above are mandatory and compulsory in nature if anyone wants to start a food joint in India. At Swarit Advisors, our professionals will provide you end-to-end assistance and guidance in obtaining all the licenses mentioned above.