Starting a Hospital Canteen: What Steps and Registrations Do I Need to Know?

One of my friends, Dr. [Name], requested me to start a small canteen in his hospital. Can anyone please advise me on the steps I need to take for this startup? Like government policies or any required registrations.

Regards,
Nishanth A

Before starting the canteen service, please visit the hospital and collect the particulars of average in-patients, their helpers, out-patients, the number of employees in the hospital, and the nature of medical services the hospital offers. Unless the hospital is very big and a separate block is provided for cooking, you have to cook the food from outside and serve it at the hospital. The same can be registered as per the Catering Establishments' Act, and minimum wages are applicable to be paid as per the Minimum Wages Act. The employees are to be clinically checked periodically for waterborne diseases like amoebiasis, etc.

Thank you, Venkat, for your first positive reply. I have collected the details. It's a small hospital with a total of 18 beds, 8 internal employees, and currently no separate room available for cooking. I have to prepare the food and supply it at the hospital, and this is my first business venture.

I am more confident about starting this business. Will it be profitable after factoring in expenses such as travel charges, driver charges, packing charges, etc.? What should be my next course of action?

Regards,
Nishanth A

Dear Nishanth, please refer to your copy of the appointment orders available with you. Generally, any company does not allow their employees to run any business on their own, and a clause in this regard is mentioned in the orders itself. In such a case, do not get yourself directly involved.

Proposed Hospital Details

Regarding the details of the proposed hospital, it would become viable only if you have the cooking place nearby the hospital so that the transportation time and cost are minimized. It would also enable you to provide food in a hot condition. Since the number of persons is less, a maximum of 44 food at any time (18 patients, 18 helpers, and 8 employees), initially you have to operate with a service motive only, keeping the number of your workers at a minimum of 2 (one for cooking and transporting and another at the hospital for serving and cleaning). Over a period of 2-3 years, you may be able to gain from the expansion of the hospital. Otherwise, a tie-up with a nearby hotel would be better. Anyway, you will gain experience.

All the best.

Yes, I have decided to start this business in my wife's name. I am currently looking for a good time; before that, we will consider that I have secured a place in the hospital itself. I will also request the same from my friend, Dr. [Last Name].

Legal Formalities and Business Setup

1. What are all the other legal formalities that need to be followed?
2. If a company name is necessary, how should I approach it?
3. Whom should I contact to fulfill these formalities?
4. Approximately, how much should I invest in capital?

Pricing and Regulations

5. What could be the minimum food rate that I can offer? Should I follow any regulations set by the food control department, or can I set my own rates, perhaps higher than the usual 10 to 12 Rs per item?
6. What other hidden charges should I be aware of in this business?

Please provide your replies under each question. Your guidance will help me move in the right direction. Thank you for your time, Venkat.

Regards,
Nishanth A