How to start a food truck business in India? [Business Plan]
Starting a food truck business in India has become popular lately in the restaurant industry. This business gives the business owners, access to a variety of locations, and also the initial investment is much lower than a stationary restaurant.
Aroon Narula, started the concept of food trucks in India in 1976. Since then, the industry has grown considerably. The food truck business in India is growing at a rate of 8.4 percent annually. So, this is the best time for anyone to start a food truck business in India.
This article talks everything about how to start a food truck business in India, what is the food truck cost in India, is the business idea profitable, what should be your food truck business plan in India, and more.
Is the food truck business profitable in India?
The simple answer is yes. A food truck in India can easily earn Rs 35,000-40,000 per day. In India, food truck owners earn up to 2-3 lakhs, and even more during festive seasons.
You might be wondering now what about the initial investment? What is the food truck cost in India? The initial investment for a food truck would be around 8-10 lakhs. The investment can be recovered with a few months of good business.
How to start a food truck business in India?
Food truck business plan in India
The first thing you need to do is make a business plan. To make a food truck business plan, you need to decide what type of food you want to sell. Food trucks are popular because they provide customers with high-quality, affordable cuisine. Your options include:
Fast-food – This is where the customer takes their own food (burgers, sandwiches) or orders them from the menu at your truck right then and there.
Drive-thru – In this case, people order their meals ahead of time so that when they arrive at your location, all they have to do is drive through and pick up their order on the way out again!
After you decide the type of food you want to serve, dive into other aspects of the business. Here is a step-by-step guide on making a food truck business plan and starting your food truck business in India-
Decide your food truck theme.
You’ll want to choose a theme that is relevant to your location, target audience, and skill set. You also want to consider whether you have the budget for it. If so, great! The biggest hurdle in starting any business is getting people interested in what you’re doing. Once they see how tasty your food is and how much better than other trucks’ fare, they’ll be hooked!
The most effective way to do this is by having a unique menu with something that can’t be found anywhere else. This will help differentiate you from other restaurants on the street that might already have established identities as well as their own loyal customers who frequent them regularly during lunch hours each day.
You will need a business license, food license, and health license to run your food truck business. You will also need vehicle registration, commercial tax registration, and a bank account for the same purpose.
You must also get your insurance policy in place before starting up because it is mandatory for every business owner to have some form of coverage against any kind of loss or damage caused by his/her employees or customers during their operations (e-commerce firms are exempt from this requirement).
Choose a street that doesn’t have too many comparable food sellers nearby, has a steady flow of traffic to attract huge crowds, and has places with young professionals and students nearby. Furthermore, truck parking should be done in such a way that it does not impede commuters while remaining visible to the public.
Source ingredients and equipment
When you’re buying your equipment and ingredients, the first thing to do is get a list of local suppliers. Buy from them instead of online or at big-box stores like Amazon because they’ll give you better deals and service.
If you want to buy used equipment, ask around in the community or on Facebook groups for recommendations on places where people might be selling their old stuff. You can also find used trucks online by searching through Facebook Marketplace listings or Craigslist ads looking for “food truck” options near your area. Buying wholesale goods is another way to save money on initial investment costs—you’ll probably pay less than if you bought all new equipment from scratch!
Finally, don’t forget about bulk discounts—you can often get better deals when purchasing larger quantities than smaller ones; these savings add up quickly over time as long as one item doesn’t end up costing more than others do.
Launch your food truck
Now that you’ve established your business and have everything ready, it’s time to launch your food truck. You’ll need to create a marketing plan, social media strategy, and website before taking the next steps. A good first step is to have a presence in the local food truck community (like Facebook groups). Also, consider connecting with local bloggers who write about new businesses in your area so they can review your services when they’re available!
A lot of restaurants keep track of their data using point of sale software. POS software stores data about repeat orders, inventory, sales, etc. So, having POS system in your food truck business is recommended to keep all the data safe. POS software can be used to punch-in orders, print KOTs, print receipts, and manage the customer database. Investment in good food truck POS software is definitely worth it.
Social media – Facebook and Twitter are the most popular channels. You can use these to announce events, post pictures of your food trucks, and interact with customers.
Online reviews – If you want your business to succeed, it’s important to get as many positive reviews as possible. Find people to review your food and the experience they have at your food truck. This will help you attract more clients for your business.
Flyers – Print out flyers that talk about your food truck and paste them in different places.
With minimal investment, you can start a successful food truck business in India by following this guide.
Benefits of opening a Food Truck
Here are some benefits of opening a food truck that you should know.
● It involves relatively low operating costs.
Aside from lower investment in food trucks, they also have a lower operating cost than running a restaurant. When a person opens a restaurant, they must invest in various expensive utilities and staff, such as cashiers, cooks, cleaners, kitchen managers, servers, and more. Restaurant owners also have to pay property tax or monthly rentals. Other costs may also include the operating costs of a restaurant.
On the other hand, running a food truck has limited costs due to limited ingredients, gas, and a small staff. Opening a food truck also saves you from repair costs as it needs little maintenance.
● You can experiment with food trucks at a specific location.
There is no guarantee that a restaurant will rise or die at a certain location. Many new restaurants shut down before their first year because of poor locations and high rentals. Opening a food truck, on the other hand, allows you to keep your business in multiple locations. If your services don’t seem to work well at a certain location, you can change your business location and see if your business fits the location. When you own a food truck, you can add new recipes, change the prices, and change the menu to suit your needs. It will enable you to be more adaptable and keep your business running.
● It attracts more customers.
Everyone knows that food trucks offer quality food at lower prices than restaurants. Hence, it attracts customers who want delicious, quality meals within their budget. Another thing that attracts more customers is that food trucks ensure the health and hygiene of their food. They offer safer and healthier meals than street food. Many people are concerned about their health and avoid eating street food. These people are switching to healthier alternatives like food trucks and small restaurants instead of eating at street vendors.
● It doesn’t require much staff.
Food trucks allow only limited staff; hence, they are smaller than restaurants. Also, food trucks are known for their specialty dishes and don’t offer the range of cuisines that a restaurant may offer. It helps food trucks cut costs by hiring multiple cooks and buying kitchen equipment. Food trucks also don’t require a cleaner or server, as they offer only fast food and takeaway.
● Explore more opportunities for extra income
Apart from daily operations, food truck owners can get into multiple business events to make some profit. Food trucks provide potential catering opportunities because they can move to any location and serve their food. You can offer to bring food to office parties, weddings, birthdays, and local festivals, among other things.
● You can build a brand with a food truck.
A food truck is a commercial kitchen on wheels that is mobile. It saves you from spending money on advertisements. Food trucks have advertising banners that introduce your brand to people. Nowadays, thanks to social media, anything can get popular in no time. Once your brand becomes popular, more distant customers will come to you, and you will also get a chance to franchise your truck.