Well, you want to start a food truck business in India and do not have a clue as to how to go about it? You are at the right place! Here is a step by step guide to take you through from the basics of starting a food truck business in India from scratch.
Food truck business has become one of the most popular food businesses in India. Young and working people are relying heavily on outside food vendors which are there in the close vicinity of their work spaces or colleges to save time and money. So, this business plan is bound to be successful once you choose the right location and cater to the tastes of the people around.
Here are a few things you need to know before starting food truck business:
#1. Choose the right food menu:
First and foremost comes choosing the menu for your business. You need to decide whether you want to have a Veg Menu or a Non-veg Menu. You obviously cannot cater to both of these due to space and hygiene constraints, so be specific. After that, choose if you want to offer snack items which are often quick bites, or meals. If you plan to offer meals, you need to arrange for seating arrangements near your vehicle, which is not always possible. Also, see that what kind of food items might be popular according to the taste sensibilities of the people you are targeting.
#2. Decide on the location
After selecting the food menu, next important thing is to decide the location of your business. One thing which is best about food truck business is, you can try various locations and then settle for the best. Best thing would be to park your vehicle where there are lots of offices or schools/colleges. Or you can also choose a location where there is already a restaurant, such as markets, since people are always on a lookout for tasty food at a cheaper price. The main thing to keep in mind is that you park your vehicle where there are a good number of footfalls everyday.
#3. Choose the right commercial vehicle
After you have had clarity over your food menu and its location, decide over your vehicle. Does your food menu require a small, medium-sized or a big vehicle? Does the location where you will start the business have enough space to accommodate your vehicle? Keeping these factors in mind, decide on the size of your vehicle. A new vehicle might cost you around 5-10 lakhs depending on the model as well as brand. You can get an old vehicle at nearly half the price, but make sure that it is fit for use and is not more than 10 years old. After selecting the vehicle, see where you can get it customized according to your needs. Customization would include fitting up of slabs and sink, electric plug points etc. This should be done in around 1-3 lakhs.
#4. Purchase food equipment
Depending on your food menu, your food equipment needs to be arranged. Purchasing new ones would be a great idea if you can invest that much, because new equipment comes with one year warranty and requires no maintenance for a long period of time. But in case you wish to purchase old ones to save money, select them carefully. However, you can also keep some new equipment and some old for saving some money as well as ensuring smooth functioning of your daily business. All this can cost you around 1-2 lakhs. For the first month, you might require raw material which might cost around 25-30 thousands. Later, you can purchase according to the need.
#5. Get essential licenses and permits
Although, there are no defined rules and regulations for food truck business, you need to acquire some documents which might be important as some localities do not permit food trucks/vans to be parked in public areas while some authorities might ask for health and safety certificates to safeguard the public. Following is the list of documents you’ll need:
Also Read – How To Register A Business In India
- Register a firm and obtain PAN, MOA and current bank account
- NOC from Municipal corporation
- NOC from RTO
- Fire Safety Certificate
- FSSAI Mobile Vendor License
- Kitchen Insurance
- Shop and Establishment License
Acquiring all these documents can cost you nearly around 50-60 thousands.
#6. Decide Staff Members
For successful running of business, you’ll need two chefs and a helper. Try to hire some well trained and experienced chefs, as the success of food business is entirely based on the taste of its food. The cost of each chef would be around 12-15thousand per month and that of the helper would be around 8-10 thousand per month.
#7. Introduce Staff Uniform
It always gives an edge to your business, if your staff is properly dressed. After all, you need to give a professional look to your business. Purchase white collar t-shirts, head caps and gloves for chefs, and a t-shirt and a cap for your helper. This should cost you around 2-3 thousands.
#8. Miscellaneous Expenses
You would need to maintain daily log to record your daily sales. For that, you need a register, few pens, and a calculator which would cost you around 1000 rupees. Also, you would need to purchase disposable plates/glasses/spoons/paper napkins for serving the customers. This might cost around 8-12 thousands per month. You should also keep one or two dustbins to keep your place clean and find a place to dump the garbage. Dustbins can cost you around 1-3 thousands depending on their number and size.
#9. Market your Business
Last but not the least, you should advertise about your food business by getting some pamphlets printed and getting them distributed in the locality where you are planning to set up your business. You should also put up a banner on your vehicle to catch passers-by attention easily so that they can remember your food truck by the name you put on the banner. This might cost you around 20-25 thousands.
#10. Be open to upcoming events
Keep a track about any upcoming events in the area and get a permit to park your food truck there. But, be quick, as only a limited number of vehicles might be allowed and there might be a lot of other food truck guys who might want to park their food trucks there as well. These events can help you make some good amount of money in a limited amount of time.
Hope all these points have helped answer your queries. Now,you have gotten to know all that was required to set up a food truck business in India. Hope you get started soon!