Starting a coffee shop business in India has enhanced a rage in recent years due to the high demands from the millions of coffee lovers in the most utmost of the developing regions. After tea, coffee is the second foremost favored beverage in India. India is known for generating about 3.5% of coffee production in the world. The climatic circumstances, as well as favorable topography, assist in growing coffee beans in the North-Eastern and Southern parts of India. In this article, we will discuss how to start a coffee business in India and its significance in India.
Coffee Growth in India
As we know, In the 2016-17 season, India produced 5.5 million bags of coffee. A prevalence of the country’s coffee is grown in the three southern states of Karnataka, Tamil Nadu, and Kerala, followed by Andhra Pradesh and Telangana, which was a part of Andhra Pradesh until recently.
Nearly 65 percent of the total production appears from Karnataka, while Tamil Nadu contributes nearly 15 percent, and Kerala makes up around 20 percent. It has been calculated that there are more than 210,000 coffee producers in India, the majority of whom are smallhoder growers with plots around two hectares.
How to start a coffee business in India
Indians are too connected to freshly fermented coffee to refresh them and feel lively and dynamic. Indian coffee is getting worldwide attention due to its pleasant fragrance and exotic taste. There are various Points to Acknowledge before Starting a Coffee Shop Business in India.
Step 1: Decide the species of business:
You will first require to zero in on the kind of café business you want to start:
- Acquire a franchise of an existing brand
- Buying out an already occurring venture and making amendments to it
- Commencing a café from scratch
Step 2: Find location:
After finalising the variety of business, you will expect to lock in an apt location for your café. The location can potentially be the agreeing factor between success and failure. So, you will require to consider the following factors while doing your research on a place and its demographics:
- Visibility – assure the location is in a busy market/shopping area and experiences high footfall throughout the day.
- Accessibility – along with being visible, the direction should also be easily accessible to the public, like an area with ample parking space.
- Target customers – you will also require to decide which demography are you looking to target and accordingly choose a direction that is apt for them.
- Affordability – you will require to consider the rent as well before finalising the location. Assessment the lease fluctuation patterns of the past few years.
Step 3: Hire employees:
Hiring a competent set of people is half the battle won! It is of prime significance to employee the right people for the right position as this secures excellent customer service, which assists foster customer loyalty. You will require to hire:
- Head chefs and assistant chefs
Step 4: Equipment & technology:
In today’s times, you can seldom purpose without efficient technology. So, you will needy to invest in a good coffee shop POS system that offers fast billing, stock and inventory management, real-time reporting as well as integrates customised offers like dinner combos etc.
Step 5: Designing:
one aspect of the café business that cannot be refuted is that in the beginning, arguably, the only way to captivate consumers to your coffee shop is through its outlook before the other aspects like food quality and customer service step in.
Step 6: Marketing:
with new cafes opening virtually every other day, especially in urban areas, the café business is currently experiencing cut throat competition. Therefore, the only way to make a mark in this business right away is an aggressive marketing strategy!
From digital marketing platforms like building an attractive website and publicity across various social media platforms to physical marketing tricks like circulating brochures, print media advertising and offering unbeatable launch discounts, you will want to make sure you fire from all shafts as far as marketing is concerned.
Step 7: Financing:
The most significant step in your business strategy will be obtaining the expected funds for investment from external sources. Food business being one of the most common entrepreneurial investments undertaken in India, it is fairly easy to acquire funds for the same. You may require financial aid for various short term and long term business provisions like:
- Purchase of commodity
- Building or renovation of the café
- Investment of equipment’s, furniture, and fixtures
- Working capital requires
How to Export Coffee out of India?
The individual who wants to commence their businesses in another country has the opportunity to acquire the Coffee Board License. All Coffee exporters have to get a Coffee Board Registration Certificate along with an export permit of Origin from the Coffee Board of India.
Licenses Required to Start a Coffee Business in India
Coffee shops would get organized in India either through an LLP or sole proprietorship. The Indian government is regulating several bodies for Company Registration.
All the coffee shop owners, committed to the taxable supply of goods or services, having their turnover intersecting the threshold limit, can go for the GST registration along with receiving the GST number.
All the coffee shop speculators must get Trademark Registration for their coffee shop business to create knowledge among people about your brand.
All food business operatives, including coffee shop owners, must get the FSSAI Registration. FSSAI Food License assures that products are as per the standards of the FSSAI Act and high on qualitative areas.
Health Trade License
The issuance of a Health Trade License takes place from the instructions of the Municipal Corporation or Health Department of the respective state.
In case, you require any kind of guidance related to Start a Coffee Business in India or any other Business compliance, please feel free to contact our business advisors at 8881-069-069.
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