Prerna MishraLast Updated on by My Rasoi
The food truck is a very common way to start your own food business. They are very flexible and allow you to work with your own schedule. You can do a lot of the selling yourself, and by using your own menu, you can even make good money.
There are lots of things to consider. And, a guide like this can walk you through every step.
Adoption of food truck business in India
Food truck culture is a new phenomenon in India but is rapidly gaining popularity. It has gained immense popularity in megacities like Bangalore and Delhi. These days, food trucks are enticing even people in small towns to buy food from them.
A variety of ideas are being proposed by truck owners to promote the Indian habit of sitting while eating food. Also, many food trucks offer chairs and tables near their eateries. This is common, especially in small towns.
Case Study of Jyoti and Sathya’s Food Truck Business
Dosa Inc, Jyoti and Satya’s food truck, serves traditional South Indian food at festivals, music concerts, and other events. Dosa Inc. started with just a few simple recipes but has since expanded to include more than 100 unique menu items. For this reason, the couple dropped their jobs and started this business which is giving them huge profits now.
The business has grown quickly since it was founded. So, with eight years under its belt, the truck now covers Delhi, Gurugram, and Noida in a network of 50,000 households.
Adoption of food truck business around World
The increasing health consciousness among consumers has increased the demand for healthy, hygienic, and tasty food products. This, in turn, has led to the emergence of a host of food trucks and carts. The reason is, they offer a variety of food items at a cheaper price.
How to start a food truck business?
If you have made a plan to start a food truck business, split the process into parts to make it easy. Here are the steps before launching a quirky food truck business-
1. Choosing a right location
A location that has a regular inflow of people will be quite advantageous. Also, a street that doesn’t have much competition on similar dishes will soar the business high. The food truck should be based in a place where it isn’t a problem for traffic, and also clearly visible to people.
2. Draft a business plan
If you want to be successful, your food truck will need a solid business plan. In fact, a well-developed business plan can be the difference between success and failure for your new venture. The plan will help you identify your target market, budget, and marketing strategies. It will also serve as a guide to help you track performance.
3. Targeting the right audience
If you are aware of the food habit of the place and people, you can attract a lot of customers. People generally come out to eat some unique street food dishes or dishes that are affordable and tasty. Also, researching more about the food interests will help in setting up a successful business in that place. They can help you plan for the future. In India, the market is expanding and is estimated to grow at a steady rate of 8.6% annually.
4. Applying for license
Before starting the business, you will be requiring some documents such as government permissions for the license of the truck, FSSAI license, fire safety certificates, and many more.
5. Take Financial Aid or Government Funding
You can apply for small business loans from banks and other financial institutions. You can also secure investors, or take out a business loan from the government. For example, microlending is a new concept in the world of business financing.
Around 80% of diners prefer food trucks because of the unique experience there. They also find the cuisines more exciting and different from the conventional restaurant menu.
6. Hire the needed workforce
In order to make the best out of your business, you will require people to help you in this. The team should be able to manage a good number of customers at a time, and take orders without making them wait. They should also be cordial with customers and serve a good customer service.
7. Getting an order management platform in place
For engaging more customers and sorting the menu for increasing sales you can go for digital menus. Hence, you can get one for your business through the My Rasoi app, and simplify the ordering and billing process.
8. Marketing
Without marketing, people won’t be able to know your existence. So, focus on a good advertisement strategy to draw in more customers. People should be tempted by the offers and discounts plus should like your dishes as well, so that people recommend it to others.
What Documents Do You Need to Start the Venture?
A set of documents are required to complete the legal permits. In order to legally operate your restaurant business in India, it is essential to obtain the following licenses for your food truck.
- Vehicle Registration
- No Objection Certificates from RTO
- Approval letter from Municipal Corporation
- Fire Safety Certificate
- FSSAI Mobile Vendor’s License
- Kitchen Insurance
- GST Registration
- FSSAI Food License
- Insurance
Cost of Startup
Setting up a food truck business is an exciting venture, but it also comes with a lot of responsibility. As the owner of a food truck, you’ll be responsible for everything. From hiring and training employees to deciding where you’ll set up your business.
As a next step, you will need to buy electronic appliances and retrofit your truck to act as a mobile kitchen. All in all, it is estimated that you will need to invest about 8-10 lakhs upfront. But, don’t let the number scare you. The average earning range from the food truck is estimated to be around Rs.5000 to 35000 in a day. It all depends on the location where you base your food truck. Furthermore, the profit will increase where the footfall of people is more.
How to manage the business effectively?
To manage the business in the right manner, you should have a menu that sets you apart. It should be well-priced but also appealing to your target audience.
Your menu should be simple, with ingredients that are easy to find and prepare. It should also be varied from time to time to ensure that it always offers something new and exciting to your customers. Thus, it will help you to keep them coming back for more!
You should also brand the exterior of your truck, choosing a color that is unique from that of your competitors and that catches the eye. Thus, it helps customers to associate your business with the quality and taste of your food, drawing them to your truck more often.
Future of Food Truck Business
The future of food truck businesses is bright. In some ways, the future of food trucks is already here. You can now find food trucks selling everything from tacos to cupcakes. The menus and quality of food served by food trucks have only improved over the past decade.
The idea of a food truck was to bring change. The high prices of restaurant food and lack of good ambiance push to think out of the box. Thus, the concept of being mobile can be carried to any place and parked with no hassle of having a fixed complex. For this reason, in the coming years, it is going to draw in more customers.
With projected revenue growth of 3.7% in the next five years, the future looks bright for the food truck industry. By this calculation, the industry total will rise to $1.7 billion, which represents phenomenal growth for a new industry.
Conclusion
By investing a small capital you can earn a lot of profit through food trucks. Therefore, it makes a place in the high-profit business list. If you have the right location, a great menu, and a favorable ambiance, your business is sure to pitch high.
The business is soaring high these days. So, a food truck business can be a great way to supplement your income, or even become a full-time business. It all depends on how much time and money you’re willing to invest.