Starting a coffee shop business in India has increased in anger in recent years due to high demands from millions of coffee lovers in emerging regions. After tea, coffee is India’s first favorite drink. India is famous for about 3.5% of the world’s coffee production. Climate conditions, and favorable terrain, help coffee beans grow in the northeastern and southern parts of India. In this article, however, we will discuss how to start a coffee business in India and its importance in India.
Coffee Growth in India
As we know, in the 2016-17 season, India produced 5.5 million bags of coffee. The country’s coffee is grown in three southern states, Karnataka, Tamil Nadu, and Kerala, followed by Andhra Pradesh and Telangana, which until recently were part of Andhra Pradesh.
About 65 percent of GDP comes from Karnataka, while Tamil Nadu contributes 15 percent and Kerala 20 percent. It is estimated that there are more than 210,000 coffee growers in India, most of whom are small farmers with an area of two hectares.
How to start a coffee business in India
However, Indians are paired with freshly brewed coffee to feel refreshed, lively and active. Indian coffee is gaining global attention due to its pleasant aroma and exotic taste. There are various points to admit before starting a coffee shop business in India.
Decide the species of business:
You must first zero in on the cafe business you want to start:
- Acquire ownership of an existing brand
- Purchasing an existing initiative and making corrections to it
- Starting a cafe from scratch
After completing the various businesses, expect to lock in the appropriate place for your cafe. However, The location between success and failure can be a factor of agreement. Therefore, during your research on a place and its population you should consider the following factors:
Visibility – Make sure the place is in a bustling market / shopping area and enjoy more footprints throughout the day.
Accessibility – should be visible and the direction should be easily accessible to the public, such as an area with adequate parking space.
Target Customers – You need to determine which population you want to target and also choose the direction that suits them accordingly.
Affordability – You should also consider rent before finishing the location. Evaluating lease fluctuations over the past few years.
Hiring talented people is half the battle! Hiring the right people for the right position is of paramount importance as it protects the best customer service that helps to develop customer loyalty. Also You must hire:
- Head chefs and assistant chefs
- Accountant / Cashier
Equipment & technology:
Nowadays, without efficient technology, you can rarely aim. Therefore, you should invest in a good coffee shop POS system that combines personalized offers such as quick billing, stock and inventory management, real-time reporting, and dinner combinations.
One aspect of the undeniable cafe business is that, initially, the only way to attract customers to your coffee shop is to look at it before other aspects such as food quality and customer service.
The cafe business is currently facing throat competition as new cafes open every day, especially in urban areas. So, the only way to make a mark right now in this business is an aggressive marketing strategy!
From digital marketing sites to various social media platforms to create attractive websites and advertising, to physical marketing tricks like publications, print media advertising, and invincible publishing discounts, you need to make sure you get off all the stakes when it comes to marketing.
The most important step in your business strategy is to get the expected funding for the investment from outside sources. The food business is one of the most common entrepreneurial investments made in India and it is very easy to get funding for it. You may need financial assistance for various short-term and long-term business arrangements:
- Purchase of goods
- Cafe building or renovation
- Investment in equipment, furniture, and appliances
- Working capital required
How to Export Coffee out of India?
Anyone who wants to start their own business in another country has the opportunity to get a coffee board license. All coffee exporters must obtain a Coffee Board Registration Certificate and Origin Export Permit from the Coffee Board of India.
Licenses Required to Start a Coffee Business in India
Coffee shops in India can be arranged by LLP or sole proprietor. The Government of India regulates a number of organizations for corporate registration.
All coffee shop owners, who are committed to providing tax or goods or services, can go for GST registration by obtaining a GST number, regardless of their income limit.
All coffee shop speculators need to get a trademark record for their coffee shop business to create knowledge among the people about your brand.
All food businesses, including coffee shop owners, must obtain FSSAI registration. The FSSAI Food License guarantees compliance with FSSAI law standards and quality standards.
Health Trade License
The issuance of a health trade license is carried out on the instructions of the corporation or health department of the respective state.
In case, you need any guidance regarding starting a coffee business in India or any other business compliance.