If you’re an entrepreneur in India looking for a low-hanging fruit venture with strong demand and little overhead, opening a food stall at railway stations and selling food at a train station could be the way to go. Train stations are ideal locations for food sellers, since they serve millions of people every day. Here, we’ll break down the steps involved in establishing a food stand at an Indian train station.
Table of Contents
- Why Choose a Food Stall at Railway Stations in India?
- Legal Requirements for Setting up a Food Stall at Railway Stations
- Setting up a Food Stall at Railway Station
- Location and Type of Food Stall
- Infrastructure Requirements for a Food Stall
- Equipment Needed for a Food Stall
- Food Menu Selection and Pricing
- Hiring Staff for Your Food Stall
- Marketing and Promotion
- Financial Planning for Your Food Stall
- Challenges and Risks of Running a Food Stall at Railway Stations
- Conclusion
- FAQs
Why Choose a Food Stall at Railway Stations in India?
With millions of passengers passing through Indian railway stations every day, the market for food sellers is enormous. Because they don’t have to cover rent or power bills, food stands at train stations can keep their prices cheap. Yet since people need to eat at train stations all year round, the business can count on a continual flow of cash.
Legal Requirements for Setting up a Food Stall at Railway Stations
You need a permit from the Indian Railways if you want to open a food stand at a train terminal. The Station Manager at the station where your food stand will be located will provide you the necessary licence. To further guarantee your food’s safety, you’ll need an FSSAI licence from the Food Safety and Standards Authority of India.
Setting up a Food Stall at Railway Station
If you aspire to market your delicious cupcakes at a local farmers’ market or showcase your stunning beaded necklaces at a craft fair on the weekend, it is highly likely that you will need to obtain certain documents such as a registration, permit, license or insurance policy to operate your stall.
A similar process is involved for an individual who aims to launch a stall at a railway station in India as they must obtain a specific license or permit from IRCTC.
To secure the license for a railway station canteen, one must file an application to the DRM/Commercial of the relevant division of the Zonal Railways (IRCTC). The DRM/Commercial shoulders the responsibility for ensuring the efficient conduct of commercial work in their area of jurisdiction. Furthermore, applicants must take notice of INVITING TENDERS (which could be either online or offline) for opening a canteen at the railway station and adhere to the prescribed process. The stalls at a given station are disclosed in tenders or by inviting applications, depending on the category of the station, traffic, and popularity.
Open tenders are issued for the allotment of catering stalls. Usually, licenses for stall operation are granted for a period of five years. Therefore, when an announcement is made about the release of open tenders for the allocation of catering stalls, it is advisable to participate in it. One could be granted a license if they offer the highest rate.
It is important to obtain licenses and permits as they serve as a protective measure for the investments that have been made in the business.
Location and Type of Food Stall
A successful food stand relies heavily on its strategic placement. The ideal location would have plenty of visibility and traffic. It’s up to you whether your food stand is temporary or not. It takes more money and a leasing agreement with the railway authorities to open a permanent food stand, but a daily food stall doesn’t need either.
Infrastructure Requirements for a Food Stall
Having the right facilities in place is essential for operating a successful food stand at a train terminal. The availability of utilities like running water, power, and clean restrooms are all part of this. A shed for your food stand’s storage and preparation areas is a good idea.
Equipment Needed for a Food Stall
A food stand needs a stove, utensils, refrigerator, and other kitchen equipment in order to prepare and serve meals to customers. Both buying and leasing new machinery are viable options.
Food Menu Selection and Pricing
It’s crucial to think about your target audience’s tastes when creating a meal menu. Snacks, beverages, and full meals may all be on the menu. One other important consideration is cost. Having reasonable rates and providing solid value to customers is essential.
Hiring Staff for Your Food Stall
You may skip this stage if you’re going to be in charge of operating the food stand yourself. If you find that you really need some extra assistance in the kitchen, dining room or bathroom, you may always employ some personnel to help you out.
Marketing and Promotion
Your food stand won’t survive without some kind of advertising and marketing. You may advertise your food stand on websites like Facebook and Instagram. More clients may be attracted with the use of sales and discounts.
Financial Planning for Your Food Stall
You should perform some financial planning in advance of opening your food stand in order to estimate your startup expenses, ongoing expenses, and potential profits. If you find yourself in need of a loan, you may apply for one at any number of banks and credit unions.
Challenges and Risks of Running a Food Stall at Railway Stations
It is not without its difficulties and dangers to operate a food stand at a train station. To succeed, you’ll need first-rate food and attentive service in a market where the stakes are high. Furthermore, climate change means you can never tell when it will rain or how hot it will become, so always come prepared.
The safety of your consumers is another potential issue. It is your responsibility to check that all of your products are FSSAI compliant and safe for human consumption. Every kind of food poisoning may damage a business’s image and drive away consumers.
Conclusion
In India, opening a food stand near a train station may be a lucrative venture if done correctly. But, it needs forethought, investigation, and diligent effort. By according to the aforementioned advice, you may open a thriving food stand near a train station and have access to a massive pool of prospective clients.
FAQs
- What is the cost of setting up a food stall at a railway station in India?
The expense associated with initiating a food stall at an Indian railway station varies based on the site and kind of establishment. It can range from a few thousand rupees to lakhs of rupees.
- Do I need a license to set up a food stall at a railway station?
It is imperative to obtain a license from the Indian Railways and an FSSAI license to ensure that the nourishment offered is safe for human consumption.
- How can I attract more customers to my food stall?
One can deploy social media outlets, present concessions and deals, and offer high-caliber food and amenities to entice an increased patronage.
- What are the risks of running a food stall at railway stations?
The hazards involved in operating a food stand at railway stations comprise of competition, erratic atmospheric conditions, and apprehensions regarding health and safety.
- Is it profitable to run a food stall at a railway station in India?
Yes if executed effectively, managing a food stand at an Indian railway station can be a lucrative pursuit. Diligent preparation, comprehensive research, and strenuous labor are prerequisites for ensuring a successful enterprise.