Learn How To Start A Food Truck Business In India

[ A comprehensive guide on how to start a food truck business in India where you will learn about the various things to keep in mind to build a successful business. ]

Nowadays, you can spot a food truck at almost every nook and corner. Most of us have grabbed a bite to eat at a food truck before rushing off for work or after a tiring workout. Quirky and colourful aesthetics and quality food only add to a food truck’s appeal. However, that’s not all.

I was intrigued when a colleague gave up his job to open a food truck business. I learnt from him that numerous other things go into a food truck business, along with delicious food.

How to start a food truck business in India

• Choose the right vehicle or food truck

The size and type of truck you choose should depend on the cuisine you intend to serve. Other factors, like moving your food truck to multiple locations or keeping it at a fixed location, also matter.

A new truck, that is at least 18 feet inches long, may cost up to 7 to 8 lakhs. You can opt for a truck from renowned companies like Mahindra & Mahindra, Tatas or Ashok Leyland. If you want to save on costs, you can also buy a second-hand truck.

Always check for fitness certificate, registration, road tax receipt and insurance before purchasing an old truck.

Also, ensure that your vehicle is at most five years old, as many states are banning commercial vehicles that are ten years and older as they cause more pollution.

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• Select the right location for your food truck

While learning how to start a food truck business, you will realize that location is a crucial factor that will help determine the success of your business. Choose an area with a high footfall, where not many food trucks offer a similar cuisine.

You can also stick to one location or move between locations. You will also require permission from local authorities, police and residential buildings to function without hindrance.

• Purchase raw materials and kitchen equipment

You will need to invest in essential equipment like a microwave, juicers, mixer, refrigerator, freezer, griller, steamer, working tables, burner, exhaust equipment and an inverter.

It is best to buy new equipment as they all come with a year-long warranty or more and will have fewer maintenance-related issues.

You can also purchase all the raw materials you will need for the first week and store them appropriately. However, it’s advisable to not overstock, keep a watch on the sales patterns, and then buy accordingly.

• Get the various permits needed for a food truck business

Knowing which permits and licences to procure comes in handy when considering how to start a food truck business in India. They include: –

• • Employee identification number:  The revenue department will need this number to identify your business and collect taxes from you and your employees.
  • FSSAI Licence: You will need this licence if your business crosses a turnover of Rs. 12 lakhs.
  • NOC from the Chief Fire Officer:  Since food trucks may have gas appliances, a NOC from the Chief Fire Officer becomes mandatory.
  • Permission from local municipality corporation:  Once you select your location, you will need a written document stamped by the local authorities before setting it up.
  • Vehicle Licence:  As you will be conducting business operations from a commercial vehicle, a licence for the same by the RTO of commercial vehicles is needed.
  • The licensing and paperwork: The cost will come up to Rs. 50,000. There are various consultancies that can help you in getting all the licences and permits.

• Calculate the cost of running a food truck business

The average cost of running a food truck business in India is about Rs. ten lakhs per year. This includes the cost of:

• • Raw materials, packaging materials, electricity and cylinder.
  • Salaries, accommodation, uniforms and food for staff.
  • Equipment and vehicle repair and maintenance.
  • Point of Sale Software for the food truck.
  • Other miscellaneous expenses.

• Other things to keep in mind while you consider how to start a food truck business in India

You will also need an online social media presence to market your food truck business, along with pamphlets and flyers. This will help your customers know about your location in case you keep moving and create a brand connection.

Also, keep a note of any events and gatherings happening in your food truck’s vicinity. Tie-ups with such events, building personal contacts with customers, and even offering free giveaways like t-shirts and mugs with your food truck’s logo will help build a clientele.

 Takeaway

The food truck business is an excellent concept as you can do away with overheads like rent and huge electricity bills. It also involves low operational costs and less capital. You can easily kick-start your food truck business by executing the tips mentioned above.

It is necessary to understand a business before you take the plunge. Creating and following a detailed business plan will help guide you when in doubt.

Image source: RicardoImagen via Getty Images, free on CanvaPro

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