Although a biryani shop is not as huge as and structured like a restaurant like any other food business should obtain all the requisite licenses like that of an fssai, license under the Shops and Establishments Act.
In India, food is an emotion. Food connects people beyond social and cultural differences. And, when it comes to biryani, it’s not just food, it’s an obsession down here. Every other street in India would house a biryani shop, large or small, and undoubtedly would have at least 2 to 3 customers waiting in line to grab their favorite food. Such is the love of biryani here in India. Also, every state in India has a biryani of its own, like that of the Hyderabadi biryani in Andhra Pradesh or Ambur biryani in Tamilnadu, Thallasery Biryani in Kerala etc. Now that the craze for biryani is all known, it is only natural that someone out there would want to make a lucrative business out of this. It is not all that complicated but still has its own prerequisites like any other business would.
Opening a Biryani Shop as a Business:
It is quite fascinating to imagine having a biryani shop for a living for two reasons. Firstly, it’s not that complicated a dish to try and can be easily put together. Secondly, given the demand for the dish, the business could turn out to be quite profitable. For the love of biryani, every Indian foodie would have had this thought of owning a biryani shop crossed their mind at least once in their lifetime. But few of them do wish to go ahead and materialize that thought. This post is intended to shed some light on this for the latter category of people.
Steps in Establishing a Biryani Shop:
Step 1: Explore the Potential of the Market
The first and foremost thing to do is to carry out extensive market research, identifying the taste and preferences of the people native to the respective area where the business owner intends to set up the biryani shop. This would give an idea about the best rates that the dish can be priced for and the quantity and quality that would suit the crowd. It would also give a heads-up about the potential competitors in the respective area.
Step 2: Decide the Business Model
Now that every business has the scope to go online, a biryani shop is not an exception. The shop can be a physical brick-and-mortar shop, or it could be made at home right in the kitchen and can be sold out using the food apps available in the market. Depending on the investment and sources available, the choice can be made.
Step 3: Choosing Between a Brand or Franchise
If the business owner is hesitant to build up a brand from scratch, another easy option to pursue the business is by opting for a franchisee outlet of a renowned brand. However, the profits are better when an own brand is evolved in this scenario. Also in an own brand, the owner is free to experiment and also to expand the business further.
Step 4: Devising a Business Plan
The business should be planned well ahead in areas pertaining to both technical and financial aspects. The technical part like designing the website or making the dishes available over food delivery apps must be decided and properly executed. Financial aspects such as rental charges, salary charges, utilities etc must be planned ahead of time. Other aspects such as marketing, cost of procuring raw materials, manpower etc should also be taken into account.
Step 5:Cost of Setting Up a Biryani Shop
The cost of setting up a biryani shop is quite minimal compared to the possible profits it could reap. A minimum of ₹100,000 would be necessary to put up a biryani shop. To start a shop with sophisticated interior designs and a fancy setting would certainly be more expensive. But for building a basic shop with the requisite amenities or setting space in one’s own kitchen and selling the order via online apps, the amount would be sufficient. The profit margin in a biryani shop would be somewhere close to 30-35% when started as a medium or small-scale business. In the commercial sector, the profit margin would increase up to 50%.
Step 6: Registration and Licenses that Should be Procured for the Business
The biryani shop should be given a unique name and should be registered under the Trademarks Act 1999. The shop can be registered as a proprietorship, or LLP or as a private limited. Once the registration is done, the shop should apply for the Trade license from the Municipal Authority. Regardless of the category, when a business deals with food, it is mandatory to acquire the FSSAI license. The shop should also get a fire license and get the requisite approvals under the shop act license as well. Apply for fssai license for small business owners wherein the turnover of such food does not exceed rupees ₹1,200,000.
The business should also carry out the VAT (Value Added Tax) registration and BIS (Bureau of Indian Standards) as well. The business can also avail of various facilities initiated by the government such as Udyog Aadhar MSME (Ministry of Micro Small and Medium Enterprises). The business should also employ Good Manufacturing Practices and should be in consonance with the Prevention of Food Adulteration Act, 1954.
Thus, a biryani shop can be evolved in a step-by-step fashion. Although the process seems simple, procuring the necessary licenses like FSSAI might be challenging. One might think that getting the FSSAI license may not be necessary for small eat-outs. However, it is false and has to be obtained. This would ensure the quality of food delivered by these restaurants are hygienic and wholesome. By following these minimal compliances a biryani shop can be established successfully. In a country like India, where food is given a lot of importance, a little planning and a better execution, could enable the establishment of a successful biryani shop.
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