I think Food retail will not be affected much provided you keep your profit margins low. Expensive food items like Pizza and specialty restaurants might feel slowing down.
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Saw your post.
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The health tags havent caught with the mass market which still prefers normal price tags on what they eat. If one can offer healthy food, then there would no issue with growth.
It really depends on the location of the retail shop. If the location is strategic you would want to survey that area and then decide the type of retail and what uniqueness of customer experience you can bring. Else your shop will be another one in town or in that area.
Your idea for organics is also good but when it comes to expensive organic food you will limit your customer base.
If you are just going to try or start with I would suggest an coffee joint first probably which is near to an good college. If you can bring that college experience this joint is sure going to be good. you can also have part of it as college katta and part of it as professionals katta. A good name too :).
I have been working in the organic agriculture sector for the past 5 years. I am currently interested in marketing, consumer perseption and behaviour on organic/health foods. Would like to be of assistance in your endevour