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How much does it cost to start a tiffin business?

What it really costs to start a tiffin or meal-delivery business: home, commercial and cloud-kitchen models, a line-by-line budget, monthly running costs and how prepayment cuts what you need.

By Davinder Singh · 4 min read ·

The honest answer is: far less than most people expect if you start from home, and far more than they expect if they start with a commercial kitchen before they have customers. What decides your startup cost is not your menu but your model — and whether customers pay you before or after you cook.

Three ways to start, three very different budgets

  • Home-based. You cook in your own kitchen for a few dozen customers. You need registration, containers, some bigger pots and a way to take orders and payments. This is the leanest start, but check the rules first: in the UK and India it is allowed with registration, while in most US states perishable meals from a home kitchen are not.
  • Commercial kitchen. You rent a licensed kitchen. Now you are paying rent, a deposit, utilities and usually staff from the first month, before the customers arrive to cover it.
  • Cloud kitchen add-on. You already run a delivery kitchen and add a subscription line. The kitchen costs are sunk; the new spend is mostly packaging, riders and software.

A line-by-line startup budget

Here is what to budget for. The ranges are an illustrative example for a small home-based start in India — prices vary a lot by city, so use it as a checklist rather than a quote.

Item Illustrative budget Why you need it
FSSAI basic registration ₹100 a year (government fee) Required to sell food in India
Containers and insulated bags (~30 customers) ₹5,000–₹15,000 Two sets per customer if you wash and reuse
Kitchen upgrades ₹10,000–₹50,000 Larger vessels, an extra burner, fridge space
Launch marketing ₹3,000–₹10,000 Flyers, a paid trial week, local ads
First ingredients Depends on volume Covered by prepayments if you ask for them
Software ₹0 to start WhatsApp and a spreadsheet work at first

A commercial kitchen adds rent and a deposit, commercial equipment, gas and power connections, and staff wages before your first delivery. Those are the costs that sink new kitchens — which is why testing demand from home or a shared kitchen first is usually wise.

The cost most people forget: working capital

Before your first payment arrives, you buy ingredients, packaging and fuel. If customers pay at the end of the month, you are lending them a month of meals — and that money has to come from somewhere.

The fix is simple and standard in the tiffin world: ask for payment in advance, weekly or monthly. Prepayment turns your customers’ money into your working capital, cuts bad debt to zero, and makes customers more committed. A prepaid wallet makes this automatic: customers top up once and each meal is debited.

Monthly running costs once you are open

Startup cost is a one-off. What decides whether you survive is the monthly cost of running:

  • Variable costs that grow with every meal: ingredients, packaging, payment fees.
  • Delivery costs: riders’ pay and fuel.
  • Fixed costs that you pay whatever you sell: staff, rent, utilities, software, marketing.

Fixed costs are what you must cover before you make any profit. In the example in our profit calculator — 100 meals a day at ₹120 — the kitchen needs about 51 meals a day just to break even. Knowing your own break-even number before you sign a lease is the most useful thing you can do.

Where not to save money

  • Food safety. Registration, clean storage and correct temperatures are not optional, and one bad incident can end a young business.
  • Packaging that holds up. Leaks and cold food cost you customers faster than anything else. Test containers on your longest route.
  • Reliability. A backup rider and a spare set of containers are cheap insurance.

Where you can save

  • Start with a small menu that uses overlapping ingredients
  • Deliver yourself until volume justifies a rider
  • Use WhatsApp and a spreadsheet until the daily list and payment chasing start to cost you real time — then move to software

The bottom line

A home-based tiffin business can start on a small budget if you register properly, invest in decent packaging, and get customers to pay in advance. Save the big spending — a commercial kitchen, a team, a fleet of riders — for when you have the customers to pay for it. For the full picture, including licences and pricing, read our guide to starting a tiffin business.

Written by Davinder Singh Founder, TifTif

Davinder Singh runs TifTif, the white-label platform for tiffin and meal-subscription businesses, and sets up and supports every client launch himself.

About the author How we write these guides
Part of the guideHow to start a tiffin service business in 2026
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