How To Start Momos Business- Complete Step By Step Guide

Hello curious businessman, I know you eagerly want to know about how to start momos business. But before we deep down into this let’s understand some brief points about the momos industry. Also here is the table of contents available, by which you can directly go to the part you want to know about.

  • Momos are a type of steamed-filled dumplings. It is believed the origin of momos started in Tibet & Nepal. In India, its popularity is immense in Northern states. But as momos are becoming the most famous street food you can easily find them in small cities.
  • According to the journalism site BizzBuzz, the market size of momos is estimated to be close to $2.7 billion in  India. And nearly 97% of this is unorganised. So, now you know the potential of momos business profit.
  • Apart from this making a business plan for starting a momos business is quite fascinating because of its low investment, lower risk, high margin, no prior experience and huge scope. But it all starts with momos business plan.

So, if you are thinking of a momos business idea and want to make your own momo brand then lets us know how to start momos business in this article of Bazaar Neeti. Let’s Go!

Read more: How To Start Ice Cream Business

How To Start Momos Business

Initial Guide to How to Start Momos Business:-

Location-

As momos are getting very famous mostly among youngsters, so you have to find a good and crowded place to set up a momo stall. Because in every business location always matters to keep your product in the right place by targeting the right customers.

You can easily go to crowded areas like outside of shopping malls, movie theatres, schools, colleges, parks, etc.

License Fee For Momos Business-

If you are owning a momos business you should focus on some mandatory licenses, that can protect your business in future. You have to be well-informed about the current regulations of the city you are operating in. And have to follow several rules and regulations laid down by the local authorities. Failure to which can attract penalties and challans. Here are some of them :

  • Food license from FSSAI
  • GST Registration
  • Police Eating House license
  • Local municipal corporation health license
  • Fire license

Required Equipment For Momos Business-

  • Momo Steamer
  • Momo-Making Tools (Dumplings)
  • Momo Making Machine
  • Kitchen Chimney
  • Cutlery Set
  • Tableware

Required Ingredients For Momos Business-

  • For Dough Maida, Baking Powder, Salt
  • For Fillings Carrot, Cabbage, Oil, Onion, Garlic, Soya Sauce, Salt, Vinegar, Black Peeper.
  • Mayonnaise & Chutney

Investment In Momos Business:-

Now after choosing the best location for your momos business. You have to do some investments in multiple assets.

For Momo Stall Setup-

So if you are setting up a momos stall, it will come with a minimal set-up cost. All you need in starting is a food cart, and a chef to cook momos and you can handle your finances by yourself. And as your business will grow you can hire staff for multiple services like a service staff, cashier, dish loader, etc.

For Momo Restaurant Setup-

In setting up a complete shop, first, you need to find an exact land that will not be removable. So again you have to do deep research in the market a good and crowded place. After the land investment, you should keep in mind the infrastructure, ambience, multiple staff salaries, electricity bill, maintenance cost and some other expenses.

Estimated Cost To Set up Momos Business-

  • Machinery/Equipment – ₹10,000 – ₹20,000
  • Furniture – ₹5,000 – ₹10,000
  • License Fee – Up to ₹20,000
Momos Business Profit

Momos Business Profit Calculation:-

Momos Business Economics-

So your momos economics calculation is completely dependent on the set-up cost, quality service, hygiene food, varieties of flavours, per unit cost, etc. And you can easily calculate it by yourself, and for that here is the complete chart of income in momos business.

ItemsAmount
Making Cost1kg Maida₹40
Baking powder₹5
Filling Cost2kg Cabbage₹50
1/2kg Carrot₹20
Ingredients(Oil+Species+Onion+Others)₹30
Mayonnaise + Chutney₹50
1kg Cooking Gas₹100
Other Expenses₹50
Total Expenses₹345

So, if you take it up to Rs 400 of the total cost you can easily make 200 pieces of momos.

Momos Business Profit-

Now we again take the above example where we made 200 pieces of momos at the total estimated cost of Rs 400.

Momos business profit calculation:
1 Plate Momos Price (6 pcs)₹30
Price of 1 Momo ₹5
Price of 200 pcs Momos ₹1000
Income of 200 pcs Momos₹1000 – ₹400
Profit of 200 pcs Momos₹600

Calculation of Monthly Momos Business Profit-

200 pieces momos = 200/6 = 33 plates

                       (1 Plate contains 6 pcs)

So if you can sell at least 100 plates of momos a day then you can easily make;

100 plates × 6 pcs               = 600 Momos

600 pcs × ₹5                        = ₹3000

(1 Momo’s price is ₹5 as above mentioned)

And as above mentioned, we have a profit of Rs 600 by the sale of 200 momos. So, now for 600 momos, we will earn a profit of ;

600 momos  × ₹3  = ₹1800 per day

                         (1 Momo = 600/200 = ₹3)

₹1800 × 30 days    = ₹54,000 per month

Additional Income In Momos Business-

Apart from the above calculation you can add multiple products and services to maximize your revenue sources like as soup, cold drinks, different flavours of momos, water bottles, etc. And by all these additions you can easily earn an estimated income of Rs 70,000 in the momos business.

Expenses In Momos Business-

Monthly expenses in momos business:
Salary (1 Man Power) ₹10,000/month
Electricity Bill ₹1,000/month
Packaging Cost₹2000/month
Other Expenses ₹5000/month
 Total Expenses ₹18,000/month

So, here is your final momos business profit:

Total Income = ₹70,000

Total Expenses = ₹18,000


  Total Profit  = ₹52,000/month

Marketing Strategy For Momos Business:-

So, there is a very famous quote for marketing;

 “The more you tell, the more you sell.”

To increase sales of your momos business you have to keep these points always in your mind.

  • USP (Unique Sellling Proposition)
  • Branding
  • Supreme Hygiene And Cleanliness
  • Ads in Local Newspaper
  • Offers, Discounts & Loyalty Programs
  • Upselling & Cross-Selling
  • Social Media Marketing
  • Introduce online orders then send them special discounts by SMS/Whatsapp

Major Problems in Momos Business:-

  • Lack of Momos Business Plan
  • Laws & Regulations
  • Cash Crisis
  • Low Sell
  • High Competition
  • Employees Management
  • Natural Factors

Solutions to Problems in Momos Business:-

  • Lack of Momos Business Plan
  1. Momos business plan is the most useful term that many entrepreneurs neglect in starting and this always leads to their business failure. Firstly you should have a clear vision of your business’s present position and its future position, where you want to see your business be reached. 
  2. Start writing about your complete momos business plan, like, about initial set-up cost,      target customer, location for your business, pricing for your momos, momos quality, etc.
  • Laws & Regulations
  1. Whenever you start any business you should always know about the laws and regulations in your business. As we have touched on some of the required licensing for momos business.
  2. You must have to aware of your local authorities and regulations to start any kind of business. All you can do is get in touch with a government official for more details.
  • Cash Crisis
  1. You know as per the study 82% of business failures are due to poor cash flow management. What you should focus on is every single expense in your momos business and on investment that leads to an outcome.
  2. You should focus on pricing, raising funding, supplier money, and crediting to customers.
  • Low Sell
  1. You should never compromise your product quality.
  2. You should keep an eye on the market and accordingly put the price of your momos.
  3. Your behaviour should be good towards your customer. Because they will be your first promoter.
  • High Competition
  1. Look competition is everywhere but if they affect your business then you should differentiate from them by maintaining your product quality, brand recognition, and reasonable pricing.
  2. You can also differentiate by adding different types of momos flavours like tandoori momos, fried momos, sizzler momos, burger momos, chocolate momos, etc.
  • Employees Management
  1. Don’t rush to hire. Take your time and hire well-skilled employees who should be hard-working as well.
  2. To retain your employees you should focus on their pain points. Make a good relationship with them.
  • Natural Factors
  1. Weather can play a spoilsport for your momo business. The footfall might not be the same every day. Start home delivery for the customers.
  2. You should be prepared financially for natural disasters.

Conclusion:- 

By considering all these points, a momo business will be a good business idea. However, running a food momos business needs a lot of groundwork. But if you work with all the hard work and dedication, you definitely will succeed. If you have any doubts regarding your business you can contact us. Good luck!

FAQs:-

Q. How much do you earn by selling momos?

Ans. It depends on how your sale is. If you sell 100 plates of momos per day @ ₹30/plate then you can easily make a total sale of ₹3000/day. By this calculation, your monthly sale will be ₹90,000.

Q. How much investment is needed to start a momo business?

Ans.  The total cost of setting up a momo business including (machinery, licences, and raw material) can come to around ₹50,000.

Q. How to start selling momos?

Ans.  To start any food business in India, you should take care of Location, License, Investment, Product Quality, Targeted Customers, and Marketing.

Q.  What is the market size of momos in India?

Ans. In India, momos are considered to be the number one street food. Its market size is estimated to be close to $2.7 billion of which 97% is unorganised.

Q. Who is the target audience for momos?

Ans.  Momo targets people who want to eat fusion dishes made with quality materials and hygiene at a reasonable price. This kind of audience mainly includes the young generation.

Q. How to overcome low sales in the momos business?

Ans.  1.) You should have to improve your momos quality. 2.) You should keep a reasonable price. 3.) Good behaviour with customers. 4.) Maintain Cleanliness and hygiene.

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