How To Start A Food Truck Business In India?

. 7 min read
How To Start A Food Truck Business In India?

Table of Contents:

1. Food Truck Business Plan In India

2. Food Truck Business Plan In India After Pandemic

3. How To Open A Food Truck Business In India?

4. How To Create A Food Truck Business Plan In India?

5. Gourmet Food Truck Business In India

1. Food Truck Business Plan In India

A food truck is a large motor vehicle, like a small bus or trailer, where you can cook, prepare, and sell food. It has an onboard kitchen, and fast food like French fries, sandwiches, barbecued items, or any regional fare sells very well. Global cuisines such as Italian, French, and Mexican are also finding acceptance among food lovers. Along with food, they may sell cold beverages like soft drinks and water. Drawing inspiration from the food trucks or restaurants on wheels in the U.K. and the U.S.A., this new dining format has gained rapid popularity in India.

Running a Food Truck Business In India is a great opportunity for businessmen if they have a passion for serving good food. Unlike opening a restaurant, there is no need to buy or lease costly spaces. So, you can start it with a small investment. Some food truck owners park their vehicles inside apartment blocks, corporate offices, private areas, or schools. Many food trucks are modified into stationary kitchens or parked for business in basements of the mall or at private events. There are also a few food streets in major cities where you can start.

2. Food Truck Business Plan In India After Pandemic

In fact, with the threat of Covid-19 following us everywhere, a food truck is a safer bet. People can wait for the food in the safety of their cars or can line up, maintaining social distance. The advantage of mobility in a food truck gives the owners access to multiple locations.

The pandemic has changed the food truck business: the vehicles do not ply their trade on the streets anymore but have changed their business strategy. Many have converted to cloud kitchens and deliver food through online partners. Customers hire Food trucks for special events like corporate gatherings, movie shoots, or weddings. Some also carry advertisements and banners for various brands, providing another source of income for the owner.

3. How To Open A Food Truck Business In India?

First of all, you should have a business plan which would set out the agenda for future growth. A well-documented business plan is significant if you want to raise funds from investors. The plan should include the following:

  • A company description: List out the reasons why you want to start a food truck business. And how will it differ from the competition?
  • A market analysis: You should write to hear who your target audience is, and which demography you would like to cater to?
  • A product description: List out the food offering or, to be precise, give the menu details.

To start a food truck business in India, you will have to invest in the following:

  • The truck
  • Insurance
  • Decoration
  • Advertising and promotion
  • Disposables
  • Ingredients
  • Cooking systems
  • A POS software system
  • Staff uniform
  • A food safety certification

There are also recurring costs like the following:

  • Fuel
  • Licenses and permits
  • Staff payroll

In India, the average cost of starting a food truck business would be anywhere between Rs 15 lakhs to Rs 25 lakhs. It depends on the food that you will sell and the type of vehicle.

Food Truck Business In India

4. How To Create A Food Truck Business Plan In India?

You can start a food truck business in India by taking the following steps:

1- Research

You have to research the food truck scene in your city for the following:

  • The taste of people.
  • What they want to eat in a hurry
  • Existing businesses and their USPs.
  • Demographics
  • Spaces for selling food
  • Busy office areas where potential customers can be found.
  • Demand for the type of product that you would like to sell.

2- Choose a unique concept

Choose a concept that combines your unique style sensibilities with the interests of the target customers. You should select a name and logo that represents your business. The concept, logo, and name should:

  • Be attention-grabbing and descriptive.
  • Be memorable and stand out from others.
  • Clearly express what you want to offer.

An interesting concept and a well-designed logo can induce a passer-by to become a customer.

Also Read: Best Chips Brands in India

3- Choose the right vehicle

The vehicle should be at least 18 feet long, and a new one can cost between 7-8 lakhs INR. The food trucks come in various sizes and are customised. The cost of decorating can vary between Rs 1 lakh to Rs 5 lakhs. You can select from any of the reputed truck brands like Ashok Leyland, Mahindra, and Mahindra, or Tata. If you want to save costs, you can purchase a second-hand one, which will be around half the price of a new one.

4- Licenses

  • Food License: The Food Safety and Standards Authority of India (FSSAI) is the concerned Government body that issues licenses for any type of food business. It certifies that the food is safe for human consumption.
  • NOC from the fire department: The trucks have boilers, fryers, gas appliances, grills, etc.-things that involve fire. So, a certificate from the fire department is compulsory.
  • A license from the local Municipal corporation is required to serve food to the people.
  • Commercial vehicle license: You have to obtain a commercial vehicle license from the RTO for selling food.

5- Equipment

Get the kitchen equipment and raw ingredients required for the food truck. The equipment will include cooking vessels, cutlery, stove, utensils, etc. You can also put a few tables and chairs, to give customers the option of sitting. If you can procure the raw materials straight from the farmers, that will be a great USP. All of these will set you back by around Rs 2 lakhs. Hire the staff required to run the food truck smoothly.

6- Market the business

If you put your brand name on the vehicle, and it moves all over the city, it will be a great marketing tool. You have to be active on social media to declare your presence.

7- Communication is the key

Since you are always on the move, you must have cell phones so that customers can communicate with you.

8- Choose the right location

Choose a street that has a regular flow of traffic to ensure large footfalls, and there are not many competitors. It should also be a place where there are young professionals or students. This is a category that is price-conscious and will prefer a food truck over a fine dining restaurant.

9- Insurance

Go for a proper insurance cover for your business and truck.

Food Truck Business Plan In India

5. Gourmet Food Truck Business In India

Ethnic and fusion food are available in these trucks, and they are often manned by reputed chefs. Each of them has a specific niche - one may specialise in yummy burgers; another may offer delicious Kathi-rolls.

In the food truck business, there is an uncertainty of not knowing how long you will have space and where you will be tomorrow. So many owners are diversifying into other businesses. Since they are already in the food business, opening a restaurant is a good option.

The Indian restaurant industry is one of the fastest-growing in the world and is expected to reach Rs 5.99 lakh crore by 2022-23. Here, we will take you through the steps of how to open a restaurant:

  • Arrange suppliers and vendors for your restaurant.
  • Decide the concept and location: You have to factor in the total capital that you can invest. The Average Price per Customer (APC) gives you an idea about the money that a customer will normally spend in your restaurant. In a QSR, it usually ranges from Rs 50-Rs 500.
  • Design an appetising menu: After deciding the concept, you must plan the cuisine and theme of the restaurant.
  • Evaluate the costs involved. The average size of a Quick Service Restaurant (QSR) would be around 450 square feet, and the rent will be about Rs 40,000 per month.
  • Get investments: You can arrange the seed money either through self-funding, a loan or through Angel/VC funding.
  • Get all the licenses required.
  • Hire the right staff.
  • Install the right technology.

The food truck is a profitable business where you can serve lip-smacking food and earn good profits, both at the same time. We hope that the above article will open the doors for you to this new enterprise.

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