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How FSSAI License Can Impact Your Restaurant Business

1,March, 2016

Most of the restaurant players, small or big food chains, and other allied businesses perceive Food Licenses from FSSAI (Food Safety and Standards Authority of India) as mere a permission to operate food businesses. However, very few people know that it can be used as a marketing tool to increase business. Thanks to Maggi Probe and its extensive coverage in media, most of the people know about the FSSAI (Food Safety and Standards Authority of India). In this article, we will discuss a few points on the FSSAI license and the impact it can have on your restaurant business.

1. FSSAI Logo on Menu’s and Pamphlets:

Most of the restaurants and food outlets put their logos on the menu to make their customers aware about their FSSAI registration. We also see FSSAI logo on different packaged food and beverages. This logo depicts the trust and validity of the product that it is safe to consume. FSSAI logo with license number placed rightly on menu, boards or pamphlets can help food outlets increase their business. There a lot of unorganized players which do not possess FSSAI license, and if your restaurant is certified from authority then the certificate acts as a USP and will attract more customers.

As customers trust more on the food outlets and their hygiene, that possess food license compared to the outlets in the competition. It also helps in building trust and reliability within customers for the restaurant. The restaurant, QSR or food outlet can also place the Food Certificate on that particular area of the wall which can attract more eye balls. For example, at the entrance, at the billing counter or even at the waiting area.

2. Legal Aspects

Most of the new food outlets and restaurants avoid the taking Food License to save on the money and to avoid the hectic process of documentation in the early days of business. However, the procedure is quite simple, and there are a lot of legal consultancies which can help in getting FSSAI with an ease at nominal fees as compared to the penalties or fines that have to be paid to the authority later for not having a license. To avoid the later repercussion, one should get its FSSAI licenses with other valid permissions before officially opening the food outlet.

There may be instances when a customer takes a legal action against the restaurant in case of food poisoning, allergic reactions etc. The food license provides a cushion for restaurants in such cases, as it is given that the food outlet or restaurant is certified to sell food items follows certain instructions and standardized process and products. However, on serious complaints and allegations even food license cannot save you from legal actions, and at the same time FSSAI may cancel the license.

Therefore, care must be taken at all times to maintain the quality of food at your restaurant.

3. Customer Acceptance

For those who are opening the restaurant for the first time, or starting a new outlet must possess food license not just because of legal formalities and to avoid fines or penalties but to get accepted among consumers. Most of the people will perceive your restaurant as a brand if your restaurant is certified from the Food Standard and Safety Authority of India. At the early stage of operations, it is very hard to market or make people aware about your restaurants. But with FSSAI logo the new restaurant would be widely accepted by the new customers. Moreover, to attract more and more customers, the new restaurant can also use FSSAI logo on their bills and packaging for home delivery which will further enhance your relationship with your customers.

4. Helps in Business Expansion

If you are already a renowned restaurant or food outlet and you want to replicate your success in a different area of the same state then you can use your existing food license. Also, if you want to go big and open a chain of outlets in a different state of the country then you have to get a central license from FSSAI. The food license also helps restaurant owners to get bank loans and funding for expansion. However, only food license alone will not facilitate the funding but other sale tax and financial documents are also required.

5. Corporate and Big Ticket Businesses

In today’s world, getting big ticket businesses and corporate events aren’t easy for any restaurant or food outlet due to their strict and tight regulations. Apart from the registered tax number at the state level and central level, many corporations require food licenses from FSSAI. So, FSSAI registration is as important as the other essential papers and legal forms. So it is more than a necessity than a need of just getting a permission of operating the business peacefully.

6. Standardization of Kitchen and Raw Materials

FSSAI expects that every food outlet and restaurant that is certified under the authority should follow certain rules, procedures and process to maintain a standard and hygiene in the kitchen. Moreover, the guidelines from FSSAI help restaurant owners to procure standard raw materials and grocery which further gives assuredly of quality food.

According to news, only 1 out of 15 food businesses are registered with FSSAI. There are around five crore food business in the country and only 33 lakhs of them have FSSAI licenses. Last year, FSSAI took on famous noodle brand Maggi for the excessive lead content. Later, many small or big food outlets and restaurant chains were raided on the grounds of Food adulteration and hygiene. Post this event, many food outlets rushed for their registrations and while some of them improved their kitchens and outlets.

In the latest notification, Food Safety and Standards Authority of India has given the mandate to all the food businesses to register latest by May 4, 2016. Below are the details to how to apply food license for your food outlet and restaurant.

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  1. 2,March, 2016 at 11:03 am
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