In India, starting a catering business is profitable as it does not require a high initial investment, especially for housewives. Based on the latest industry analysis of the catering business, the global catering market is expected to grow at a CAGR of 3.88 during the period 2017-2022. The Indian food service industry is estimated to grow at an average annual rate of 25-30%.
Anyone can start a small catering business serving dinners for 10 people or hosting a party for 25-50 people. Once established, your business can scale and appeal to a large audience. Events such as charity events, social gatherings, celebrations, and anniversaries require a caterer. Therefore, the demand for home catering services has increased in recent times.
We all love food, right? And here is the answer to the question: What makes the food catering business one of the most prosperous businesses in India?
A catering business does not require a huge initial investment. You can always have humble beginnings and develop them as you bring in more clients along the way. If you have ideas for a catering business, it’s time to reveal them.
Is your head full of too many questions?
Confused about where to start?
If you want to start a small catering business, you should focus on getting orders from 12 he 50 people. On the other hand, if you feel confident going into a large company, all you need to do is organize your capital and come up with a plan to allocate it appropriately.
What Is The Scope & Future Of Catering Business In India?
The catering business is engaged in providing catering services for birthday parties, weddings, anniversaries, and corporate events. It also includes providing catering services at entertainment venues, office events, hotels, hospitals, pubs, etc. We have enough range in India.
In India, festivals offer a great opportunity for caterers to acquire and grow their business as people organize parties and invite friends and relatives during the festival. Usually, you need a caterer to provide food suitable for your event or celebration. Weddings in India are a great opportunity for caterers to make money.
Food is an important aspect of a wedding and people invest a lot in wedding food. Host a cat party. They hire caterers to serve food at such events rather than cook themselves.
Corporate events where food plays an important role require caterers. A great option for caterers to generate huge revenue. Similarly, many other events require caterers, and starting a catering business in India can be a profitable business.
Until a few years ago, Indian families usually cooked for social occasions. Now they hire a caterer for the same thing. To ensure quality standards, these people hire professional catering services. Consider professional catering services for social gatherings and celebrations, as well as formal events, seminars, conferences, and other business events. This contributes to gastronomic success.
In addition, there is rapid development, and many organized operators, including international catering companies and large restaurant chains, are also beginning to take catering seriously. There are also several start-ups looking to deliver groceries to meet the needs of people and small groups.
Students wishing to start a career in gastronomy can obtain a diploma or degree in gastronomy and hotel management.
Professionals can enter the hospitality industry by:
- Catering Sales Manager
- Marketing Manager
- Event Manager
- Catering Coordinator
- Delivery Driver Manager
- Delivery Driver
- Banquet Server
7 Steps To Start Catering Business In India
The most important steps that can help you to start your catering business are:
1. Create a business plan for Catering Business
The first thing a caterer needs to do is find a catering niche. A niche is a caterer’s field of activity. B. Private chef services, contract catering for special occasions, banquet boxes, etc. Caterers should research the market, identify potential customers, and monitor competitors before deciding on a niche.
After choosing a niche, caterers need to create a business plan that covers all the investment costs and expenses of the business for the first few months. A business plan is an outline of the work that helps a caterer run his business in an organized manner. We show you how your business can grow and provide insights on how to generate better revenue.
2. Determine budget and capital for Catering Business
A caterer must determine the budget and funding sources required to start a business. Also, caterers should develop a plan to spend money efficiently on licenses, onsite equipment, transportation, rental costs, and other expenses.
In India, the average budget to start a catering business is around Rs. The budget may vary depending on the caterer’s preferences. If a caterer does not have sufficient funds to start a catering business, it can provide investors with funds to start the business. Caterers can also apply for bank loans and participate in various government programs to help small business owners.
3. Decide the location for Catering Business
Caterers must determine location and storage requirements. Having a kitchen set up in a sanitary and clean location will help attract more customers. Rental rates for kitchen installations vary by location. Several factors should be considered when choosing a suitable location, including, For example, rent, space, and prime location.
If your caterer plans to run a full-time business, you will need permanent cooking facilities and storage space. If your caterer offers you a part-time job or starts an online catering service, you can either rent a kitchen space that fits your needs or start from home.
4. Decide on the menu
A caterer must decide what menus to offer to their customers or clients. The menu should be created considering several factors such as raw material prices, quantities, competitor prices, and associated costs. Recipe standardization helps significantly reduce food costs as it defines the exact amount of ingredients required for each dish.
Caterers should set competitive prices for each item on their menu. When evaluating prices, caterers should also consider profits. Item prices vary depending on location, time to prepare food, cost of ingredients, and profit margin.
5. Get the equipment you need for Catering Business
Caterers are required to purchase kitchen equipment based on the completed menu. Before purchasing equipment, the caterer should make an inventory of all the items it owns and the equipment to be procured. In addition to utensils, caterers also need storage utensils. For a start-up, a caterer buys raw materials from local merchants and scales up to a large scale so he can shift orders to one supplier.
Food service facility cookware includes fryers, coffee/beverage stations, ovens, pans and pots, refrigerators, cookware, stoves, and more. Storage equipment includes cabinets, multi-compartment sinks, disposable containers, and more. Other equipment needed includes plastic sheets, aluminum foil, trash cans, stainless steel worktops, serving facilities, and heated and unheated waiting areas.
6. Obtain necessary permits and licenses for Catering Business
A caterer must obtain the necessary registrations and licenses before starting a catering business. The Government of India has issued various licenses to food companies. The specific agencies issuing these permits consider several factors, including cleanliness, site safety, uncontaminated food, personal hygiene, container, and worker hygiene.
In some cases, health authorities may wish to inspect kitchens and preparation areas. All registrations and licenses applicable to catering businesses in India are detailed below. hire the right workers
Catering companies need competent and dedicated employees. Caterers may approach agencies early on to hire waiters and cooks. If caterers have sufficient financial resources, they can hire experienced and trained workers.
The minimum number of people required for a caterer to start her catering business is about 10-12 people, including chefs, chefs, junior chefs, suppliers, and menu designers. Staff must be well-trained and maintain high standards of industrial hygiene, cleanliness, and dedication. use technology
Automation of catering operations is needed these days to avoid mistaking orders and prevent caterers from duplicating specific orders. In addition, automation allows caterers to manage inventory and analyze daily consumption. Detailed analysis of consumption and disposal helps improve inventory management. Catering software can help you streamline your operations and reduce a lot of manual work.
7. Marketing of your Catering Business
A caterer needs to create a marketing plan and execute it in the right way to reach clients and customers. An effective marketing strategy can help you provide quality service to your existing customers and attract new customers. When your customers spread a positive message about your business, you are more likely to get more business.
Restaurateurs can run various promotions and offers related to gastronomy to attract more customers. You can design and distribute flyers, brochures, business cards, etc. to attract customers. Caters can also effectively use social media accounts such as Facebook, Instagram, and Google Adwords to promote their business to a large audience. Caters can even resort to the help of email marketing strategies to retain customers. A caterer can create a website for her catering company to showcase her products to a wider audience. You can create a food blog to build trust and attract potential customers.
Registration Required for Catering Businesses in India
A caterer needs to obtain various licenses and registrations to start a catering business in India as follows:
1. Company registration
A good chef, cook, or avid foodie looking to get into the catering business must first decide what kind of business her entity will start. A limited liability company, sole proprietorship company (OPC), or limited liability company (LLP) can be set up to form a catering business and give that business a separate legal status. Forming a business unit also helps catering companies obtain funding and expand quickly.
2. FSSAI license
The Food Safety and Standards Authority of India (FSSAI) is the body that grants food licenses to food businesses in India. The FSSAI allows food businesses to engage in activities related to the import and export of food services and products, including food manufacturing, packaging, storage, distribution, processing, transportation, and catering services. Catering businesses are required to obtain mandatory FSSAI registration or license based on annual turnover and food manufacturing capacity.
3. GST registration
Catering businesses require GST registration depending on their income and the state in which the caterer chooses to operate. Therefore, if a catering company conducts business through an e-commerce platform or if its sales fall under GST laws in India, it is compulsory to obtain GST registration.
4. Commercial license
A catering business must obtain a health trade license from the appropriate department of the state in which the business is based. The Department of Local Government is the accredited body for issuing health trade licenses. Therefore, restaurateurs should contact their county or city’s local government department to obtain a healthcare business license.
5. Registration under the Store Act
Food service establishments must apply for registration under the Stores and Establishments Act by applying to the agency of the state in which the establishment is located. The State Department of Labor issues incorporation and registration of establishment. The Stores and Branches Act stipulates that store and business registration is mandatory to operate a commercial branch or establish a store.
6. Business license
Electricity and fire are used extensively in catering businesses and a No Objection Certificate (NOC) from the Electrical and Fire Department is mandatory to ensure building safety from potential fire hazards. Other required licenses that caterers must obtain are a water license, a sewage license, and a permit to ensure that anyone working for the company is over the age of 18.
7. Trademark registration
A catering company is characterized by an unmistakable unique identity. Help customers recognize your company and build your brand image. Others may use the mark for their business, confusing customers about their business. prevent it from Obtaining a trademark registration is not mandatory, but it is recommended to obtain this registration to protect your brand from competitors. Trademark registration also plays an important role when opening new branches.
8. MSME registration
The government offers many benefits to companies with MSME registration. Micro, small and medium enterprises (MSMEs) can apply for MSME/Udyam registration. Catering companies with an annual turnover of less than Rs.250 crore and investments of less than Rs.500 crore can apply for MSME registration. Although not required, it is recommended to obtain MSME registration. Companies with MSME registration can benefit from many small industry programs introduced by the government. B. Tax benefits, easy access to capital, low loan interest rates, etc.
Benefits of starting a catering business
There are numerous benefits of a catering business, let’s discuss about some of them.
• You don’t need to invest a lot in a catering company. You can even start a catering business from your home for little money and it’s also a great place to host your meetings. You can ask your customers to pay upfront for your facility.
• The advantage of starting a catering business is that you can focus on multiple niches where you can reach different customers.
• Becoming a catering business owner opens up countless employment opportunities. You can’t cook for an event alone, so you need to build your workforce.
• Catering doesn’t require a lot of advertising or promotions, but we encourage business owners to expand their catering to reach more users.
• Online catering services are also very popular these days. All you need is the right delivery service and you’re ready to go.
A catering business can also be started from home with a small investment. Catering demand is on every occasion. Even for small events such as birthday parties, people nowadays prefer to order food from a caterer. Therefore, starting a catering business in India is profitable.
I recommend you, follow all the required steps and get the documents ready, and there won’t be any issue starting a catering business.