Types of food business in India and their pros and cons
types of food buisness

India is a vast and diverse country, and this diversity reflects in the types of food we eat. When you think of opening your own food business, the dilemma one faces is what kind of F&B business to open out of so many types of food business. The type of F&B unit you open needs to be decided only after evaluating the capital required to start a business, the risk and rewards involved, the staff requirement, and the other factors. 

Below mentioned are some types of F&B businesses one can open:-

Fine Dining:-

Fine dining is a type of food business that is one of the most exquisite and expensive dining experiences. The clienteles of fine dining restaurants are looking out for 5-star experiences along with gourmet cuisine. The menus are elaborate with very high price tag menu items and specialty liquor.

Knowledge of gourmet food and maintaining exceptionally high service standards is essential to manage a fine dining restaurant. Fine dining requires a high investment and highly trained staff. The cost of establishing a fine dining restaurant is very high, but one can expect high returns when the business starts generating profit.

Casual Dining:-

Casual dining is one of the most popular dining options for families and corporates. These are usually full-service restaurants with some traits of quick-service restaurants. Casual dining restaurants also provide delivery and takeaway services to augment their revenue. Menus are generally extensive with freshly cooked food. A successful casual dining restaurant’s main motto should be quality food at reasonable pricing. 

The apt location for a casual dining restaurant is high footfall residential and corporate areas, malls, market areas etc.

Quick service restaurants:-

These types of food businesses have been gaining popularity in India post-liberalisation. Quick service restaurants or QSR’s are the favourites among food entrepreneurs dues to ease of service and low investment. Fast food can be prepared quickly and are comparatively less expensive when compared to other outlets. Due to cheap cost and comparatively better ambience, this restaurant is popular across different demographics. 

The central plus point with QSR’s is that they are a cost-effective business model with comparatively less investment and high chances of success. 

Cafes and Bistros:- 

Cafes are Bistros are types of business usually visited by college students or corporates depending on the outlet’s location. The meal served is beverages and snacks like cakes, pastries, pizzas etc. Cafes work on self-serve food models with outlets usually providing facilities like free Wifi to entice the customers.  

Bistros is a small restaurant that serves beverages and snacks. The menus of Bistros is a little more elaborate than a cafe.

Cloud Kitchen:-

Cloud kitchen or ghost kitchen are food businesses that operate on delivery model only. A cloud kitchen does not have a dine-in space; the orders are taken from the website, food aggregators, or phone calls. Cloud kitchens are a low-cost model of the food business. Just like any business there are advantages and disadvantages of cloud kitchens too, Newcomers to the restaurant business and people who don’t want to invest a considerable amount can opt for cloud kitchen. 

Bars and Pubs:-

Bars and pubs can be broadly defined as establishments that serve liquor on their premises. Restaurant cum bar and Bristo bars are already popular options for many friends and colleagues who would like to hang out after office hours. Family restaurant and bars cater to which family crowds. Bars and pubs are profitable business options, but getting proper licences can be daunting.


Bakeries are eateries that sell a wide variety of baked food like cakes, pastries, cookies, biscuits, bread etc. Most bakeries have takeaway and delivery services, while some provide a sitting area on a self-serve basis.

Ice cream parlours:-

Ice cream parlours serve ice creams, milkshakes etc. One can see a lot of innovative ideas taking shape in the ice cream parlour business, with many unique concepts like nitrogen-based ice cream, naturally flavoured ice cream, low-fat ice cream etc. Ice cream parlours are usually self-serve facilities and delivery, with some providing seating facilities.

Juice Centers:-

Juice centres serve juices and sometimes milkshakes and ice creams. Some juice centres have seating space and usually are self-service facilities. The target demographics of the juice centres are college-going youths, families with young kids, young couples etc. 

I hope the above-mentioned types of food business inspires you to open your own restaurant business and give clarity to your ideas.

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