How to Start a Food Truck Business in India?

With the Changes of time, civilization changes and so is society.  Since the Market is an essential part of human society, it has got changed as time passed and has been changing with passes of time. A Food Truck is a new concept in the Food and Beverage market. As the name indicates, food on a truck means a transportable shop on vehicles.

Food Truck has recently entered the Indian market. Opening a Food Truck business initially costs more amount in comparison to a traditional shop and restaurant business.  Though,  initially, a large chunk of the investment amount is used for purchasing a truck.  The vendor is required to pay monthly rent, which is the advantage of having a Food Truck business.

Besides this, It can be transported at any time at any palace, or wherever are expected to be high footfalls for better revenue. If you want to start a food and restaurant business at a reasonable investment and earn a high profit, then Food Truck Business is an excellent business for you.

How to Start a Food Truck Business in India?

To start a food truck business, you should have an understanding and planning to start with. The following things are required to start a Food Truck Business in India.

1. Planning and estimation of Amount
2. Funding of Investment amount
3. Initial Investment
4. Choosing the right truck or Food Vehicle for Business
5. Registration of business
6. Buying kitchen equipment
7. Buying of raw materials
8. Manpower for working at Food Truck
9. Point of Sale (POS) Software at the counter of Food Truck
10. Staff Uniform for Food Truck Employees
11. Marketing of Food Truck
12. Investment Details for Opening a Food Truck Business in India
13. Miscellaneous Expenses
14. Conclusion

1. Planning and estimation of Amount:

To start this Food Truck business, one should have proper planning and estimation of the amount. Collect the data on about cost of the vehicle, kitchenware, raw material, chef wages, helper wages, delivery boy wages, and other daily expenses.

2. Funding of Investment amount:

If you have a sufficient amount of funds, then okay. Go and purchase the equipment, raw material, get the license, permits, and hire the workers, and starts the business

If you don’t have sufficient funds then,  you can arrange from friends and relatives or apply for a loan from financial institutions like banks or loan providers. 

You have another option to get funds from crowdfunding.

Check the government scheme if any financial scheme is available for a new startup. Contact to the concerned department.

3. Initial Investment

To start, a Food truck business, truck, kitchenware, utility, staff, furniture, and manpower is required.  Apart from these items, one-time licensing fees and other miscellaneous expenses will incur.

4. Choosing the right truck or Food Vehicle for Business

An ideal Food Truck covers 400 to 450 square feet. There are many manufacturers of trucks.  You can contact manufacturers if they have a model that matches your budget.  A new truck chassis will cost you approximately 7 to 8 lakhs.

If your packet does not permit, then, you can buy an old truck vehicle under 5 years of use. Get the vehicle-related documents and also check if any loan is due.

You get contact with the bus, and truck body maker for giving the shape of your Food Truck. Get denting and painting and repair.

An old used truck costs less amount and reshaping, denting, and painting up to 1.5 lakhs. The total amount will be around Rs. 4 to Rs.5 Lakhs.

5. Registration of business

To start any business, registration is legal liability.  Registration of business legalizes your business and provides rights to do business.

1. Get the FSSAI license for starting Food and beverage business. Though there is no clearance, much information is available about the Food Truck business. However, obtaining an FSSAI license will have the advantage without objection.
2. Get the RTO permit because Food Truck is related to vehicles and places on roads or road corners.
3. Get the Fire Safety certificate from the local MCD.

6. Buying kitchen equipment: 

Find the cost of kitchenware. It can be purchased from a dealer. Old used kitchenware is sometimes available on sale. Find and check if they are in good condition to use. The local brand is okay to use if like utensils, except gas stoves, burners, etc. Gas stoves, burners, and pipes should be new for safety purposes. 

7. Buying of raw materials

Raw materials should be purchased from a wholesaler. It will cost less in comparison to the local retailers. Initially, you should purchase in less quantity like floor, rice, pulse, etc. The most important thing about raw materials is green vegetables. Try to buy daily as fresh.  Other vegetables like potato, garlic, and ginger should keep in less quantity.

8. Manpower for working at Food Truck

To operate, Food truck, workers are required. For cooking, two chefs are required and one helper to serve customers. One helper is required for bringing raw materials and supply things. Sometimes customers asked to deliver food items to the residents or offices for this one more delivery boy will be required. Or, If manageable, the same helper can be employed according to feasibility.

The salary of a chef varies according to experience and skills. An average skilled chef's salary would be around Rs.15,000 to Rs.20,000 per month and a helper's salary would be Rs. 8,000 to Rs.10,000.  Thus, the total expenses would be from Rs. 50,000 to Rs.60,000. Per month.

9. Point of Sale (POS) Software at the counter of Food Truck

In the modern world, when everything is changing and your way of doing business is also changing, it will be not wise to go with a traditional account. You should have the latest Point of Sale for correct entry of data and keeping data safe and secure. Customers make e-payments rather than cash.

POS generates receipt copy which helps to manage things correctly and in order. A Good POS Software could cost you around Rs.25,000 to Rs. 30,000 per year, which is quite reasonable.

Staff Uniform for Food Truck Employees

The uniform represents your brand and creates a feeling in customers' minds that you are doing some standard type of business. Wherever employees go wearing the uniform, the advertisement itself happens.  Thus, people soon get to know about your business. For a chef uniform, Shirt, paint, apron, shoes, and cap are required. it would cost Rs.1,500 to Rs.2,000.

And for a helper, a T-Shirt or shirt, shoes, and paint will be okay. A cap is necessary for everyone to sport your brand. A helper Uniform would cost approximately Rs. 1,200-1500.  Thus, the total cost of uniforms for the 4 staff will come to approximately, Rs. 7,000-9,000 Rs. in a year.

Read More: How to start Namkeen Manufacturing Business?

Marketing plan for Food Truck Business

Marketing is the most important thing in the business world. Unlike the traditional food restaurant, where handbills, posters, advertisements on loudspeakers, and pamphlets are required for marketing, for a Food truck business, not all these things are required. It is a moveable vehicle, and it has not had a fixed location.

However, still, some pamphlets are required to be distributed among the public to create a buzz in the market. Initially, 15,000 to 20,000 pamphlets are sufficient to create a buzz in the market. It should be distributed in the locality wherever Food Truck is supposed to be placed.  The pamphlet costs you approximately Rs. 15,000 to Rs.20,000 depending on the size.

A recorded voice should be played on the truck by using an audio player device in order to attract the customer's attention.

Now, Social media is playing a big role in marketing. Therefore, your food truck business should have an active account on Twitter, Facebook, Instagram, what's apps, telegraph, etc. It will help you to receive orders, and feedback messages from customers.

Social media will help you to connect with customers and also let you know about the market demand. You can give some discounts to your regular customers. Customers’ valuable feedback will help you to improve your business.

From time to time, free bees should be given to customers to win their trust of customers. Occasionally, Fee bees like T-shirts, caps, coffee mugs, and wristbands should be offered to customers to establish a bond with them. 

Investment required for Opening a Food Truck Business in India

The cost of opening a food truck business depends upon many factors like truck cost, remodeling cost raw material cost, kitchenware, laborers cost, etc. For an ideal Food Truck business, the total investment costs approximately Rs.10,00,000.

Details of Investment in Food Truck Business: 

Expenses Type	Approximate Amount
Commercial vehicle	Rs. 4-5 Lakhs
Kitchenware	Rs.1,50,000 to Rs. 2,15,000
License and permit	Rs. 50,000
POS Software	Rs.24,000 to Rs.30,000
Raw material	Rs. 30,000 to Rs 35,000
Staff Uniform	Rs.7,000 to Rs.10,000
Staff Salary	Rs. 50,000 to Rs.60,000
Marketing	Rs.50,000
Miscellaneous	Rs.50,000
Total	Rs.10,00,000

Miscellaneous Expenses

There should be at least two dustbins and 2 small round tables for use. For drinking water, paper or plastic cups are required. Steel plates and glass will be better options than paper plates and cups. Big Water bottles and water are required for cooking and for customers. 

Two mobile phones and one calculator are required to receive the order on call and response. One register and pen should be regularly put on the counter for customer feedback. The miscellaneous cost you approximately Rs. 50,000. All above are not recurring expenses. Most of them are one-time investment items.

Income from a food truck business depends upon, footfalls and customers' choice of food items.  In the beginning, there will be challenges, but with the passing of time, the food truck will earn credit and an average income will be approximately from Rs, 10,000 to Rs. 12,000 per day. 

Event catering will bring a lot of money in a day. Therefore, advertise that a food truck is available for event catering with menu details.

Conclusion

The food truck business is a new concept in the Indian market. Though the initial investment cost is higher than a traditional, similar size of restaurant, there is no monthly rent burden. The rent amount for a traditional restaurant goes up from Rs.20,000 to Rs. 25000 per month.  Being a transportable restaurant, A food truck can be driven to a place wherever a possibility of doing brisk business. Monthly Revenue Collection from a Food truck is generally falling from Rs, 3,0000 to Rs.3,60,000  which is more than similar size of a traditional restaurant. Thus, doing the Food Truck business is profitable in India.

FAQ-