A Complete Guide On How To

Open A Food Truck Business In

India In 2022

Food trucks have become quite a rage lately in the evolving

restaurant space. The advantage of mobility in the food truck
format gives owners access to multiple locations at an initial
capital that is lower than that needed in opening a restaurant of
any other format. Thus, it is no wonder that small restaurant
owners are looking to invest in a food truck instead of an
individual stationary restaurant. This article will tell you why it is
a better idea to open a food truck instead of a standalone
restaurant. In this article, we will take you through every step of
starting your own food truck business in India.

How To Start A Food Truck Business In

India
First of all, you should create a food truck business plan which
would act as a roadmap to the future growth of your food truck.
It is natural to have doubts when you are starting a big or small
restaurant business, which is why you must learn how you can
create a business plan for your food truck here.

Although it may seem daunting to start a food business in India,

the following points will guide you thoroughly through the
process of opening a food truck business in India:

Choosing the right food truck or commercial vehicle

Get the kitchen equipment and raw materials required in a

food truck

Apply for licenses and permits needed to start a food truck

business in India

Look for the workforce required to run the food truck

smoothly

Install POS software for your food truck

Decide on the staff uniform for your food truck employees

Market your business

Decide on the total investment required to start a food truck

business in India

Finalize the sources of funding

Other miscellaneous things required to keep your food truck

business in India, on the mark

Now, let’s dive in deeper so that you can gain a comprehensive

understanding of how you can execute these points mentioned
above in the most effective ways that will bolster your food
truck business in India.

1. Choose The Right Food Truck Or Commercial

Vehicle
The first thing to do is to choose the right truck or commercial
vehicle. Based on the given menu which is Italian and
Continental, you need a commercial vehicle that is at least 18-
feet long, and a new one would cost around Rs 7-8 lakhs. There
are various trucks available in the market from Tata, Mahindra &
Mahindra, and Ashok Leyland.

But to save costs, you can start with an old truck which would
cost half the price of the new one. However, when buying an
old commercial vehicle or truck one should check for a
proper fitness certificate, registration, road tax receipt,
and insurance. Also, it should not be more than five years old,
as due to pollution problems various state governments and
environmental bodies are considering banning 10-year-old
commercial vehicles in different cities.

The old vehicle can further be modified and designed based on

the requirement with an additional cost of Rs 1 lakh from the
various bodybuilder shops. So, the total cost of the final truck
(old) without kitchen equipment is Rs 5 lakhs. This cost seems
to be very high from the 450 sq ft shop for QSR whose rent is
somewhere around Rs 40,000, but in the long run, the food
truck cost would be negligible as there is no or very less rent or
fees to pay depending upon the vicinity.

2. Choose The Right Location For Your Food

Truck
Choose a street that doesn’t have too many similar food vendors
around, has a regular flow of traffic for inviting large footfalls,
and has establishments with young professionals and students
in the surrounding area. Also, the parking of trucks should be
such that it does not pose any hassle to commuters, yet should
be visible to the people. Also, it is advisable to buy a light
commercial vehicle rather than going for a big size heavy
commercial vehicle because in certain cities including Delhi big
size trucks are not allowed before 9:00 pm.
3. Source Raw Materials And Kitchen Equipment
The total cost of kitchen equipment comes to around Rs 3 lakhs
which includes Microwave, juicer mixer, freezer, refrigerators,
griller, steamer, working tables, one burner, exhaust equipment,
generator or big batteries with an inverter. It is
advisable going for new equipment as they are mostly
electronic items. Since you get a one year warranty on
new ones, you would be relieved of the daily maintenance
cost of the equipment. However, if you choose the equipment
carefully and determine which can be bought old, this can save
you a lot of money which can be used for other essential
activities. Apart from the kitchen equipment, you can store raw
material for the first week which would cost somewhere around
Rs 30,000. Further, it is advisable to keep the raw material less
for the first few weeks to keep the stock fresh and to study the
pattern of sale and then procure more.

4. Get The Licenses & Permits Required To Start

A Food Truck Business In India
Since there are no clear-cut laws pertaining to food
trucks/restaurant business plans in India, the defined set of
documents required are not present anywhere specifically.
However, it is essential to procure the following set of licenses
for your food truck in India, which will permit you to carry on
with your restaurant business legally in this territory:

Fire Safety Certificate

Shop and Establishment License

NOC from RTO

NOC from Municipal Corporation

FSSAI Mobile Vendor’s License

Kitchen Insurance

The combined paper and licensing work can cost you around Rs
50,000. There are a lot of consultancies that can help you to get
the licensing and other permits.

Additionally, here’s a list of all the licenses required to open a

restaurant business in India, and the steps to procure them.

5. Manpower Required For Your Food Truck

In the food truck format, a maximum of two chefs and one
helper are required who can take care of the operations of the
entire food truck. The average salary of chefs can be somewhere
around Rs 13k-15k while the helper’s salary can go up to a
maximum of Rs 8000. If you want to set up a delivery model for
the truck, you can hire two delivery boys or can tie up with
third-party logistics companies that charge somewhere around
Rs 40-50 per delivery.

However, to keep the service level up to the mark and create an

identity in the foodservice market, we would like to advise you
to hire at least one delivery boy who will also help you to
procure raw materials in the case of emergencies rather than
depending upon the third party logistics.

6. POS Software For Your Food Truck

It is always advisable to have a good point of sale software that
can keep your data safe and give detailed information about
your inventory and sales. A good POS can make or break your
restaurant business in today’s competitive environment as a lot
of restaurants including QSRs and other food businesses use
customer data to get repeat orders and take customer
feedback. An excellent point of sale software can cost
somewhere around Rs 24,000 per annum, i.e., Rs 2000
monthly.

7. Staff Uniform For Your Food Truck Employees

The staff uniform gives an overall brand feel to the
restaurant business which in return helps you gain more
trust among your customers. A standard collar t-shirt will
cost somewhere around Rs 120, and since you have only five
employees in this particular format, two chefs coats (2 each)
which will cost around Rs 300 while the rest of the employees
can have a t-shirt and a cap. The combined cost of all the
uniforms would not be more than Rs 6000-7000.

8. Market Your Food Truck

Unlike QSR, food trucks require fewer menu pamphlets for
distribution since the primary business of food trucks is
based on footfall rather than delivery. Still, to create the
initial buzz, one can go for 15000 Pamphlets which will cost
around Rs 20000 and some billboards and banners in the nearby
catchment area which will cost around Rs 10000. However, in
the new digital age creating an offline buzz is not enough.

Having a presence on social media is a must, and as it would

keep your customers and followers informed about the location
of a food truck on any given day to build a regular flow of
customers and build brand connect. Also, it can be used to
leverage existing followers to spread the word about the food
truck, offering discounts, choosing new food items for the menu,
etc. Find out how to do digital marketing for your restaurant the
right way here.

Apart from that, keep a note of events and community

gatherings in the local area and park the food truck around. Tie-
ups with event planners and food influencers, personal contacts
with customers, and free goodies like t-shirts and mugs carrying
the food truck logo, can go a long way in spreading and
expanding the restaurant business.

9. Calculate The Cost Of Opening A Food Truck

Business In India
The average cost of starting a food truck business in India is
around 10 Lakhs. It varies mainly according to the type of
vehicle you are opting for and the kitchen equipment. Here is
the overall cost distribution for a food truck business in India:
10. Source Funding For Your Business
With a business plan in place, it is now time for you to zero in
on the sources that you can tap into for the funding of your food
truck business. There are multiple avenues to choose from:

Personal savings – Over 50% of food trucks are financed

from personal funds because of low capital requirements.

Borrowings from family and friends.

Community Sponsors.

Microfinance Institutions/Banks that provide business loans.

Pre-approved Credit Cards that can be used for meeting

working capital requirements.

Crowdfunding platforms, such as Kickstarter, GoFundMe,

and Indiegogo.

Business partner/Co-founder who can bring in additional

financing.

Financing from a Venture Capital Fund if funding from loans

falls short of the requirement.
11. Other Things Required To Start A Food Truck
Business In India
Apart from the things mentioned above, while starting the food
truck, you require things like two mobile phones, a calculator, an
attendance register, a daily book, 2-3 big dustbins to keep the
area clean, etc.

Unlike other food business formats, the food truck business has
its pros and cons, such as the location which is a problem for
other formats but here the owner of the food truck can decide
the site based on the market information and research, with no
rent to be paid, no electricity bills, less capital required and low
operational costs.

On the flip side, the food truck business is quite uncertain as

there are no proper framework or guidelines to operate, but if
things are done carefully and responsibly, this format can be
rated as the best food format in terms of returns in comparison
to the investments made. The investments made in the food
truck business are slightly higher than the QSR format,
but the good thing is that the overall operational cost is
much less than a QSR or a small restaurant in the long
run.

Apart from the regular business which has a minimum of Rs

8000-9000 sales per day, a food truck can also make money
from various events and catering. A single event or catering can
generate earnings up to Rs 30,000 in a day.

Keep the aforementioned tips in mind when you decide to start

up a food truck business. Effective execution of all these ideas
will generate more profits for your food truck and keep the
customers coming back.

Inputs are taken from Karan Malik, owner of Supersuckers Food

Truck.

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