Many restaurant small or big food chains and other food businesses get food license from FSSAI (Food Safety and Standards Authority of India) to seek the permission of operating food businesses. However, only some people are aware of how FSSAI license can be utilized as a marketing tool to increase business. As a result of Maggi controversy, many people came to know about the FSSAI food licensing & registration system in India and how it can impact their business and what the benefits of FSSAI License can be.
What is the Impact of FSSAI system on Restaurant Business?
FSSAI food licensing & registration system can impact your restaurant business. Following points will provide a better understanding of the effect FSSAI has:
1. Menus and Pamphlets with FSSAI Logo
There are restaurants and food outlets which put their logos on the menu to make people aware of the FSSAI registration. FSSAI logo can also be seen on different packaged food and beverages. With the logo, you can get assured of the trust and validity of the product and about the safe consumption. Another good thing is the FSSAI logo with license number placed on the menu, boards or pamphlets can increase the business of food outlets. There are many unorganized players that do not possess an FSSAI license but the certification by FSSAI can add to the USP and attract more customers.
An FSSAI license can also provide a competitive advantage as customers trust the hygiene and quality of food outlets that have a food license more when compared to the outlets that do not. Thus, it helps in gaining the trust of customers leading to a loyal customer base. Placing the FSSAI food certificate on the wall, entrance or billing counter of your restaurant can also attract more customers.
2. Legal Aspects
There are many food outlets and restaurants which avoid the FSSAI food licensing & registration system to save money. They want to avoid the hectic process of documentation for their restaurant business. However, the process is simple and there are many legal consultancies that can help you in getting an FSSAI license with ease at a cost-effective fee. The overall expense is very less when compared to the legal penalties or fines due to not having the license at all. In order to avoid this, make sure to get an FSSAI license with other valid permissions before officially opening the outlet.
There may be instances when a customer takes legal action against your restaurant in case of food poisoning, allergic reactions, etc. An FSSAI license provides a safeguard for your restaurants as it assures that the food outlet or restaurant is certified to sell food items following certain instructions and standardized process and products. At the same time, on serious complaints and allegations, the food license can’t save from legal actions and FSSAI may cancel the license too.
Thus, the important point to note here is that the FSSAI food licensing & registration system assures the quality of food at your restaurant.
3. Customer Acceptance
People who are opening the food outlet for the first time should possess a food license not only due to legal formalities but to avoid fines or penalties and gain acceptance among customers as well. Many people will perceive the restaurant as a brand if only your restaurant is FSSAI certified. Though in the early stage of operations, it takes time to make people aware of the restaurant however with the logo it becomes widely accepted. To attract more customers, new restaurants can use FSSAI logo on their bills and packaging for home delivery that will further strengthen the bond with the customers.
4. Helps in Expansion of Business
For another branch opening of a renowned restaurant or food outlet in a different area of the same state, FSSAI license can be used. However, for a big or chain of outlets in different state central license can be helpful. FSSAI food licensing & registration can help restaurant owners to get bank loans and funding for expansion. However, only food license will not facilitate the funding but other taxes and financial documents are also needed.
5. Corporate and Big Businesses
Nowadays, it’s not easy for any restaurants or food outlets to get big businesses and corporate events due to strict regulations. Along with the tax number, many corporations look for food license from FSSAI. It is an important licensing and registration system as the other papers and legal forms. Thus, it is good to get permission to operate the business peacefully.
6. Kitchen Standardization and Raw Materials
According to FSSAI, every food outlet or restaurant which is certified should follow certain rules, procedures, and process to maintain proper standard hygiene. Furthermore, FSSAI guidelines help the restaurant owners to get standard raw materials and grocery that provides assurance of quality food.
According to news, out of 15, only 1 business is registered with FSSAI. There are around five crore food businesses, out of which 33 lakhs follow the FSSAI food licensing & registration system. A few days back, FSSAI found excessive lead content in famous noodle brand Maggi. Later, many food outlets chains were raided on the grounds of food adulteration and hygiene. As a result, many food outlets rushed to get the registration done and also worked on improving their kitchen segment.
After these events, FSSAI had passed the mandate to all the food outlets and restaurants to register their business. You can check below and know how to apply for a food license for your food outlet and restaurant.
Getting FSSAI Food Licensing & Registration for Your Restaurant
Application of FSSAI food licensing and registration system starts with knowing the eligibility of your premise which depends upon the installed capacity and turnover (kinds of businesses) and location; your premise may be eligible for any following categories:-
1. Central License– It is issued by the FSSAI Regional Offices.
2. State License– It is issued by the state authorities.
3. Registration– To apply for state license/registration, you need to check the list of states accepting applications FLRS.