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How to Start a Food Truck Business in India: Legal Permits, Locations & More

Opening a food truck means less investment and maintenance compared to a restaurant and covering as many locations as possible. Here’s a simple guide to get you started

O perating a food truck is much more than just making delicious food. It is about finding the right vehicle, acquiring necessary legal permissions, choosing your staff and finally identifying locations to maximise sales.

Take for example the case of Delhi-based Dosa Inc, a food truck business started by Jyoti and her husband Satya in 2012. After eight years, the truck caters to a network of 50,000 households across Delhi, Gurugram and Noida. They also have to be alert about the legal permits and hygiene protocols even today.

Like most food truck ventures, Dosa Inc was also started after the couple realised they wanted to take their local (South Indian) cuisine to people but at a low investment and easy maintenance of the vehicle. Another advantage of opting for movable eatery was to cover as many localities as possible. This included both, residential and commercial areas.

Dosa Inc was established with an initial investment of Rs 10,00,000 and today it clocks revenue up to Rs 1.5 crores. They may sell their food items at lower prices compared to restaurants but they have still managed to churn profits and expand their business over the years. Read their full story here .

Knowing how tedious the process can get, Jyoti shares her experience of setting up a food truck in a hassle-free manner.

Infrastructure

Infrastructure includes truck, base kitchen, staffing and locations.

The size and type of truck will depend on the cuisine you want to serve. Also, take into account the purpose of your truck, if it will be driven around or parked in a fixed location.

“The cost can be anywhere between Rs 5,00,000 to Rs 25,00,000. This will depend on the purpose of the truck, its cuisine and if it’s a second hand or a new truck. Our fully fitted out trucks have cost us Rs 10,00,000,” says Jyoti.

If opting for an old or second-hand truck, check for fitness certificate, registration, road tax receipt, and insurance. Refrain from purchasing really old trucks as they emit heavy pollution.

In the beginning, the couple had purchased a tempo traveller but soon realised it was bulky and couldn’t move with heavy equipment in it. So, they switched to a CNG-run TATA Ace. The truck is environment-friendly as it does not cause vehicular emissions. Plus, while crossing borders at Gurugram and Noida, they don’t have to pay the Green fee, which amounts to Rs 800.

Next is the base kitchen (is optional) where the majority of the heavy cooking and cleaning is done, this needs to be in a commercial location and can be in a quiet place with lower rents. Dosa Inc’s sambhar and chutney is prepared at the base kitchen.

Staff hiring depends on the size of the truck and the type of cuisine served. In the case of Dosa Inc, the founders multi-trained the staff. For example, the driver of the truck is also the cashier.

Location is the most crucial factor that determines the growth of your business. “Decide the location as per the purpose of your truck – do you intend to remain in one location or intend to move between locations. You will also need permissions from local authorities, residential buildings and cops to function. Do not forget to study the footfall and demand analysis of the location,” she adds.

Cost Break Up of Running the Truck

• Raw materials, packaging material, cylinder, electricity, etc: 25% COGS
• Staff salaries, accommodation, food for staff: 30%
• Rent of base kitchen rent and location: 15%
• Equipment and vehicle repair and maintenance: 10% (fitness/permits/insurance, and other wear and tear)

Legal Permits

According to the FSSAI website, you will need the following licences and permits:

• Employer Identification Number: The Revenue department uses this number to recognise your business and collect the relevant taxes from you, and employees.
• FSSAI License: Needed only during registration, the license is needed if your turnover crosses Rs 12 lakh.
• Business License: This is needed to run a food business. Depending on the city and state, and scope of services given, you may be charged a portion of your total sales or an annual fee, along with the license fee.
• Vehicle License: You will require a truck and driver license. Depending on the width and weight of the vehicle, some states may need a commercial driver’s license to run the vehicle.
• Seller’s Permit: In some states, food truck owners require you to apply for a seller’s permit so you can buy food and other goods at wholesale prices without paying sales tax.
• Health Department Permit: The inspection and approval of your local health department will check if the quality of the food you serve is being maintained and under hygienic conditions.
• Fire Certificates: The fire department will inspect your food truck if you’re practising cooking equipment on board. Fire Department
• NOC for the kitchen is needed if it is over 90 sq meters in area.
• Vehicle permits and fitness: Most of these have to be renewed yearly.
• GST registration: This is needed once the turnover crosses Rs 20 lakhs

For each of the above-mentioned permits/licenses, you will need documents like PAN card, Proprietor’s KYC, some architect’s drawings of the kitchen, vehicle ownership related documents (for permits & fitness) and insurance.

Click here to know more.

All images are sourced from Dosa Inc

Edited by Yoshita Rao

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How to Start a Food Cart Business: a Step-by-Step Guide for Beginners & Entrepreneurs

Wondering how to start a food cart business?

The timing couldn’t be better: it seems that the street food craze is sweeping the world.

From bustling cities to small towns, food on wheels is a growing trend. And it’s not just drawing street food fans, it’s bringing in big bucks too: according to Intuit , the street-food business, including food trucks and mobile food carts, is a $2.7 billion industry that has seen a 12.4% growth in the last 5 years alone!

Traders are encouraged by the growing number of urban street markets, private events and street food festivals, while the entire trend is supported by the global rise of the “foodie” culture, making the public increasingly open to new taste experiences and quality cuisine.

Which begs the question:

What Makes Street Food So Popular?

From the entrepreneur’s perspective , street food comes with important benefits such as low start-up costs and mobility. Kiosks, food carts , trailers, and food trucks have a lower overhead than restaurants and can be moved if one location does not generate enough business.

For customers , street food is convenient and cost-friendly, which makes it attractive for basically everyone: locals and tourists, students and busy professionals, frugal singles and large families.

The most popular street foods?

There are the classics: hot dogs, hamburgers, ice cream and doughnuts.

Then there are those inspired by ethnic cuisines such as tacos, empanadas, sushi and crepes. The possibilities are endless and it’s up to you, the entrepreneur, to find the dishes and recipes that will set you apart from the rest and, most importantly, that will help you build a good reputation and a loyal customer base.

But, before you decide what foods you’re going to sell, you’ll have to consider:

The PROs and CONs of a Food Cart Business

There are many advantages to starting your own food cart business, which is why a lot of people choose to do just that. The PROs include:

• Low start-up costs
• Less risky than opening up a restaurant
• The ability to be your own boss
• The flexibility to work when and where you want
• Little restaurant experience required
• The growing popularity of the street food trend

But, as with all business endeavours, there are also CONs to examine. A food cart business is no walk in the park: there’s a lot of hard work to be done and you’ll only see significant profits after your business picks up.

The biggest CONs are:

• Being self-employed can be testing for some
• Long hours, early mornings and night shifts required
• Fierce competition
• There are many regulations and laws to comply with
• Seasonal reliance
• Finding a suitable location that you’re allowed to trade in
• Customer service can be challenging if you’re a solo-preneur

From our experience as food carts manufacturers , people are attracted by affordable start-up costs and by flexibility; at the same time, the most common complaints – at least in the initial phase – are long working hours and industry volatility in terms of trends and business opportunities.

However, if you are passionate about good food and you start with solid and well-researched plan, there is every chance you could make a roaring success of your food cart start-up.

How to Start a Mobile Food Cart Business? A Step-by-Step Guide

First step: market research.

Market research involves finding out the “who, what, where, why and when” of your business, and while it’s not the most exciting part of your endeavour, it’s certainly an essential one.

It can be risky and even silly to assume that you already know the answers to these questions and then get caught out later on.

Here’s what you need to address at this stage:

Operational

• Where will you set up your food cart business?
• When will you open to ensure the best business?
• How will the weather affect your trade?

Target Market

• Who are your customers? What is their demographic?
• Competition
• Is there any competition? What do they offer?

Locations & Business Opportunities

Finding a couple of great locations will play a major factor in your success and it depends on several key factors:

• Where you’re allowed to park by law
• Where the customers are
• The prime hours for each location

Some great places and opportunities to consider for trading are:

• Office parks
• The business district
• Shopping districts or malls
• Popular tourist locations
• Sports venues
• Parks and beaches
• Bus and train stations
• College campuses
• Festivals and events
• Conferences and conventions
• Private events (weddings, birthdays, etc)
• Corporate events

Most of these locations will require permits and/or owner agreements, so make sure to check with your local authorities & institutions beforehand.

When it comes to festivals, events, conferences and conventions the best thing to do is to get in touch with organizers and lease your space well in advance.

Determining Your Food Cart Business Legal Requirements

You’ve probably noticed that most How-To guides on this subject place sorting out the legal requirements at the bottom of their To-Do list.

And here’s why: the permits and licensing requirements for food cart businesses vary from country to country, state to state, and even city to city, so making a definitive list with everything you need is close to impossible.

Only your local Health Department can provide you with the information that applies in your case.

At this stage, you’ll address issues such as:

• The street food vending regulations in your city
• Licenses and permits required
• The types of food you’ll be selling and how they’re handled, stored, thawed, and cooked
• Commissary requirements (the requirement to operate from a licensed commercial kitchen)*
• The size, make and the equipment of your street food vehicle
• The vehicle’s fresh water and waste water holding capacity
• Safe food handling course requirement
• Hygiene policies
• Pre-approval inspection of the equipment

* Most municipalities don’t allow food vendors to operate a food cart business from a residential kitchen and they require the use of a commissary – a licensed and inspected commercial kitchen.

Vendors have to report to the commissary each day of operation to prepare the food that will be served from the cart and to clean the vehicle’s equipment at the end of the day.

If you are selling prepackaged foods, you are not considered a food handler and may have less stringent requirements than if you are actually preparing foods or even scooping ice cream.

But as long as food is unwrapped, you are typically considered to be a food handler and must meet specific regulations.

While your cart or truck manufacturer will not know the nuances of each city’s requirements, they can usually help you meet specific health standards.

For example, all of our food carts are manufactured using food-grade materials for countertops and other parts/areas where food may be stored and prepared.

In addition, we work closely with each of our clients to adapt the carts’ cooking & water systems so they will meet all the health and safety standards specific to the vendor’s area.

Getting all the trading, health and safety qualifications in order will not only allow you to operate legally (and avoid hefty fines), but it will also help enforce the public’s hard earned perception that that those running a street food business are doing their utmost to meet and surpass sanitary requirements.

Basically, your legal status and reputation are on the line.

In addition to the food service permits and health requirements, you may also need to apply for:

• Business license
• State sales tax permit
• Truck/cart registration

To sort these out, the city hall or the county clerk’s office will usually point you in the right direction.

Keep in mind that before you can hit the road, health inspectors will check your vehicle. Usually, they look for:

• Proof of ownership, proper identification and license (of the vehicle)
• Proof of District-issued Food Manager Identification Card
• Food-purchase record storage and record keeping
• That your depot, commissary or service support facility meets your vending unit operation needs
• Copy of license for the service support facility and/or a recent inspection report

Food vehicles are typically inspected at least once a year by a health department inspector, sometimes randomly.

The inspector checks to see how food is stored so that it does not spoil and that it is kept at the proper temperature. All food equipment as well as sinks and water supplies are checked.

Commercial kitchens and garages in which food vehicles are kept are also inspected frequently and can be given high fines if they do not meet health and fire codes.

Some have been shut down because of too many violations. Likewise, trucks and carts have lost their licenses over repeated violations.

Editor’s Note: if you want to learn more about what it takes to launch a business, from a more general perspective, here’s a great resource to get you started: How To Start A Business: A Complete Playbook

Choosing Your Street Food Business Platform/Vehicle

Mobile street food businesses come in a variety of shapes and sizes, and deciding which is the right one for you depends on your:

• Start-up budget
• Time commitment
• Vision and the ability to fulfill it
• Experience at running a business
• Target demographic

Your options are: food stands, food carts , concession trailers and food trucks. Each of them has its own unique benefits as well as some disadvantages:

Food Stands

Food stands are essentially booths or stalls that are either temporary or mobile, and are used to sell everything from quick snacks such as bagels, pretzels and ice cream, to more elaborate meals.

Most food stands are usually operated indoors and they are an excellent choice in areas where outdoor selling is limited by cold or unpleasant weather.

Pros: low start-up and running costs, flexibility. Cons:  limited trading areas, limited inventory.

Mobile Food Carts

Pros: affordable, easy to customize, easy to move between locations (they can be pulled by a bicycle/car or pushed by hand), easy to park, easy to maintain, suitable for both indoor and outdoor use, may require less licensing than a food truck. Cons: not too much space for preparing elaborate dishes.

Concession Trailers

Same as food carts, concession trailers have been around for a long time and are often found at fairs, carnivals and sporting events.

Pros: low overhead costs compared to food trucks, more space for cooking. Cons: more difficult to move between locations, require bigger parking space both on/off-duty, involve higher operating costs.

Food Trucks

We believe food carts are the best choice, especially for first-time entrepreneurs. Their size, mobility and low running costs make them ideal for starting a profitable food cart business with the potential to grow and expand at a rapid pace.

Are Food Carts Profitable?

A food cart business can be very lucrative right from the start; however, this depends on many factors such as location, footfall, weather, product type etc.

According to our customers, if you can secure a good location for your business, you can expect between 100 to 400 customers per day (during weekends, festivals and public events), bringing in anywhere from $500 to $3,000 daily.

Choosing Your Concept, Menu & Suppliers

Whether they’re food carts , concession trailers or food trucks, most successful street food businesses out there have themes or concepts that are consistently reflected in all their elements: exterior design, branding, menus and recipes.

Your concept should be a means of distinguishing you from your competition and building your niche market. And, if you get it right, it can even draw media attention to your business.

This brings us to menu planning. Choosing what kind of food you’ll prepare and sell can be a fun task, and if you look at the carts, trailers and trucks operating on the streets, you’ll find that almost anything edible can be served as street food.

But there are a lot of factors to consider when it comes to menu planning, such as:

• What foods do you know how to cook?
• What foods do you enjoy cooking?
• What are the most popular foods in your area?
• What foods can you prepare relatively fast, repeatedly and without difficulty?
• What foods could your customers take with them easily?
• What foods have a good profit margin?
• What times of day will you be open for business?
• What are you going to specialize in?
• How many items will your menu have?
• Where are you going to get the ingredients from?

After deciding on the type of food you’re going to sell, it’s time to start working on recipes and experiment with various ingredients.

Once you’ve found a few favourites, test them on your friends and family first. Don’t be afraid or dismissive of criticism: it’s better to receive it from them.

The bottom line is, don’t start out with foods you have not thoroughly tested. This means you need to perfect each recipe to be sure it has the following qualities:

• It tastes consistently good
• It’s easy to make repeatedly in large quantities.
• It’s easy to serve
• It’s easy to store & carry

Next in line is figuring out your sourcing – where will you buy your ingredients from?

Sourcing your food can be an important factor in planning your purchases, schedule and menu items.

Common sources include wholesale food distributors, food manufacturers, local and regional suppliers, green markets and farmers markets.

Determining the right quantities is another matter that you’ll need to deal with, initially by trial and error. If you have the time, spend a couple of hours observing the street food vendors in your area. How many customers do they have per hour? When’s their busiest period? This will help you estimate a potential sales volume, which you can use to draft your shopping list.

Pay special attention to foods and ingredients that lose their freshness quickly; learn which are the items you can safely keep throughout the day and how many of them you can sell before they go bad.

Creating Your Food Cart Business Plan

Despite the low start-up costs involved, jumping in to street food without any kind of plan is a sure-fire recipe for disaster. The space is extremely competitive, and you need to have a very clear idea of the niche you plan to fill before taking the plunge.

Writing a business plan isn’t a complicated job and it doesn’t have to be very long. Keep it concise, to the point and ensure that you cover each of the following topics:

• Your business’s name
• Business management: who’s going to be in charge?
• Your mission statement: in one sentence, summarize the aim of your street food business.
• Your vehicle: are you going to use a stall, a cart, a trailer or a truck?
• Start-up costs: what do you need to buy to get started? What fees to you need to pay in advance?
• The daily operational costs: how much will you spend on ingredients and what are the overhead costs on a weekly or monthly basis?
• Funding and financial projections; where do you plan to get the money from to start the business and what are your projected profits/losses for the next month, year, 2 years etc? How will you maintain the cash-flow?
• Your schedule: will you work on the business full-time or alongside your day job?
• What’s your main competition and how will you differentiate yourself from it?
• What is your marketing strategy?
• Do you have the logistics in place to deal with delivery and customer service?

If you plan to focus on events, your food cart business plan should include a clear targeting strategy. Pitch fees will vary widely, and there are a whole host of other variables to take into account including total attendance, other traders present, and the demographic of customer that will attend.

A good idea would be to create a spreadsheet with all the events and street food opportunities in your area. The amount of options available could seem daunting in the beginning, so start by thinking about what kind of event or environment you would expect to see a street food business similar to yours.

The next step would be to attend a few events yourself, taking note of the businesses that appear to be doing well and why.

As a general guide, generic fast-food businesses that focus on sales volume fare well at large music festivals and other events where the food is incidental to the main experience, whilst high-end street food traders perform better at events in which the customer will be searching for a new taste experience.

However, all the preparation in the world can’t account for the unexpected, and you will find some events simply fail to produce the expected revenue.

Your business plan should account for this, and you should always have enough spare cash in reserve to act as a safety net when you run up against the worst case scenario

Your approach to branding and marketing is a vital part of your business plan. A strong brand will help you stand out from the crowd, which is important for attracting customers as well as for securing spots at venues.

Remember: you are often selling a lifestyle with street food, so your brand should have a good slogan and a clear identity which reflects this.

Social media should obviously be central to your marketing plan and a strong Facebook and Instagram presence will help you raise your profile and create an army of online followers who you can spread your message to.

Regularly update your profiles with good quality photos as they generate a lot of interest and always display your social media handles so your customers /potential customers can connect with you

Estimating Costs: How Much Does It Cost to Start and Run a Food Cart Business?

There’s no set formula for determining how much starting a street food business is going to cost you since the niche is very broad and there are too many possibilities.

But even so, if you were to estimate, here’s a general expense breakdown:

Food Cart Business

• $3,000 – $5000 on a fully equipped food cart
• $500 – $700 on your ingredients & initial food stock,
• $400 – $ 600 on permits and registrations,
• $500 – upwards on marketing,
• $500 for the first month to park and clean the cart
• $500 in other miscellaneous costs

For comparison purposes, here are the estimates for a food truck business:

• $50,000 – $75,000 on a retrofitted food truck
• $1,000 – $1,500on initial ingredients
• $2,000 on permits and licenses,
• $2,000 for the first month of a commercial kitchen rental
• $500 for the first month of parking and maintaining the truck
• $1,800 on kitchen supplies
• $3,000 on marketing and promotion
• $2,000 on packaging
• $500 in miscellaneous costs

Huge difference, right? Regardless of your choice, you need to do the math before spending any money so that you do not run out before you get started.

Final Words of Advice

Speaking with our customers about their businesses, we’ve learnt that a background in catering or hospitality isn’t necessary to succeed – indeed, a lot of successful food cart businesses were founded by people with no prior experience of serving food.

Their biggest allies? Great food, flexibility – the ability to pivot according to the market’s trends and demands, marketing – a well-thought strategy for promoting their business across multiple channels, and outstanding customer service.

Do you have any questions concerning our food carts ? Contact us and we’ll do our best to help you out!

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How to Start a Food Truck Business in India – Complete Guide

• April 29, 2024
• by Next What Business Research Team

Do you want to know how to start a food truck business in India? Do you want to know about the plan, profitability, design, and promotion? If YES, you have come to the right place. Find in this post, a detailed step-by-step food truck business plan.

What is a Food Truck Business?

A food truck business is a mobile venture that offers culinary experience directly to customers on the streets. Unlike traditional brick-and-mortar restaurants , food trucks are on wheels, allowing them to navigate different locations and cater to diverse audiences. This unique business model has gained popularity globally for its flexibility, creativity, and ability to serve a wide range of delicious dishes.

Food trucks are equipped with a kitchen and serving area, mounted on a vehicle for mobility. They often specialize in a specific cuisine or offer a diverse menu to cater to varied tastes. Food trucks operate on streets, at events, near offices, or in busy areas where foot traffic is high.

Is Food Truck Business Profitable in India?

Starting a food truck business in India can be a lucrative venture, tapping into the growing demand for on-the-go and diverse culinary experiences. While profitability depends on various factors such as location, menu, and operational efficiency, let’s explore some data points to understand the potential earnings.

Some of the key factors influencing profitability are location, menu pricing, operating costs, marketing costs, and average daily sales volume.

Successful food trucks in India can achieve daily sales ranging from INR 8,000 to INR 20,000 or more, depending on location and menu popularity. Considering an average daily sales figure of INR 15,000, monthly revenue can be around INR 4,50,000. Profit margins can vary, but a well-managed food truck business might achieve a net profit margin of 15% to 25%.

This business is a lot of fun to run. However, to be successful in this business you need to put in effort and dedication. If you are passionately looking at building a food truck business, take a look at the following steps mentioned below.

14 Steps to Follow to Start a Food Truck Business

1. market research .

Before starting the food truck business it is important to have market research for the locality and food culture of the place you want to cater to. You need to study the food culture of your target consumers. As the mobile food truck business is a capital-intensive business you need to be more careful about the proper approach and operating procedures.

2. Create a Food Truck Business Plan

After the market research create a detailed business plan for your mobile food truck business. You will need to determine how many vehicles you will initiate the venture. Fix long-term and short-term goals with a mission statement. Fix your promotional strategy. Calculate the startup budget with expected revenue return.

In starting a mobile food truck business you may have tied up with local restaurants and started to sell their products from your mobile cart. After getting a sufficient customer base and brand popularity you can think of your own cooked food.

3. Choosing the Right Food Truck or Commercial Vehicle

Selecting the right food truck or commercial vehicle is a critical decision that can significantly impact the success of your mobile food business. Here’s a guide to help you make an informed choice:

⇒ Determine Your Business Needs

Identify the specific needs of your food business. Consider the type of cuisine you’ll be serving, the equipment required, and the space needed for food preparation. Your chosen vehicle should align with these requirements.

⇒ New or Used?

Decide whether you want to invest in a new or used vehicle. While a new truck may offer the latest features and technology, a used one can be a cost-effective option. Ensure that a used vehicle has been well-maintained and thoroughly inspected.

⇒ Vehicle Size and Layout

Choose a vehicle size that accommodates your kitchen equipment and provides ample space for your staff to work comfortably. The layout should be designed for efficiency, ensuring a smooth flow of operations from food preparation to serving.

⇒ Kitchen Equipment Compatibility

Check if the vehicle’s kitchen layout matches the equipment you plan to install. Consider the power requirements of your appliances and ensure the vehicle can support them. Customizing the interior to fit your equipment may be necessary.

⇒ Compliance with Regulations

Verify that the chosen vehicle complies with local health and safety regulations for mobile food businesses. This includes having the necessary permits and certifications. Compliance is crucial for both legal and operational reasons.

⇒ Fuel Efficiency and Maintenance

Opt for a vehicle with good fuel efficiency to minimize operational costs. Regular maintenance is essential for the longevity of the vehicle. Consider the availability of spare parts and reliable service providers in your area.

⇒ Budget Considerations

Set a realistic budget for acquiring and customizing the food truck. Include costs for equipment, licensing, permits, and any necessary renovations. Be mindful of your budget constraints while ensuring you get a vehicle that meets your operational needs.

⇒ Brand and Model Reputation

Research the reputation of different brands and models in the market. Seek reviews from other food truck owners and assess factors like durability, reliability, and ease of customization. A reputable brand can contribute to the long-term success of your business.

⇒ Insurance Coverage

Ensure that the chosen vehicle can be adequately insured. Look for insurance policies that cover liabilities, damages, and theft. Insurance is a crucial aspect of protecting your investment and ensuring financial security.

⇒ Test Drive and Inspection

Before finalizing the purchase, conduct a thorough inspection of the vehicle. Test drive it to assess its performance on the road. Check for any signs of wear and tear, and have a mechanic inspect the engine and other critical components.

4. Cost of Food Truck Vehicles in India

A)  new food truck:.

• Average Cost: The cost of a new food truck in India typically ranges from ₹8 lakhs to ₹30 lakhs or more. Prices vary based on customization, size, and additional features.
• Factors Affecting Cost: Considerations include kitchen equipment, vehicle size, and the extent of customization required.

b) Used Food Truck:

• Average Cost: A used food truck can cost between ₹5 lakhs to ₹20 lakhs, depending on factors like age, condition, and any existing customizations.
• Considerations: Ensure thorough inspection, check maintenance records, and assess potential renovation costs.

Some of the popular food truck vehicle brands in India:

• Tata Motors:   Tata Ace and Tata 407 are commonly used for small to medium-sized food trucks.
• Mahindra: Mahindra Bolero and Mahindra Supro are preferred choices for food truck entrepreneurs.
• Eicher: Eicher Pro series
• Ashok Leyland: Ashok Leyland Partner and Ashok Leyland Guru
• Force Motors: Force Traveller is frequently converted into compact food trucks.
• Piaggio: Piaggio Ape series
• Swaraj Mazda: Swaraj Mazda Super and Swaraj Mazda Elite are used for food truck conversions.
• BharatBenz: BharatBenz 914 and BharatBenz 1217 are preferred for food truck customization.

5. Food Truck License and Registration

Starting a food truck business in India requires complying with various licenses and permits to ensure legality and adherence to health and safety standards. Here’s a comprehensive guide to help you navigate the regulatory landscape:

⇒ FSSAI License

The Food Safety and Standards Authority of India (FSSAI) license is mandatory for any food business, including food trucks. Apply for the FSSAI license through the official website. Provide necessary documents such as identity proof, address proof, and a food safety management plan. The license is typically valid for 1 to 5 years, depending on your preference.

⇒ Municipal Health License

Local municipal health departments issue this license to ensure that your food truck complies with hygiene and sanitation standards. Contact the local health department or municipal corporation office to understand the application process. You may need to submit your FSSAI license, vehicle details, and a site plan. Renew this license annually.

⇒ Police Eating House License

Some cities may require a Police Eating House License to operate a food business. Check with the local police department or licensing authority to understand the specific requirements. Provide details about your food truck, business plan, and security measures. Renew this license annually.

⇒ Fire Department No Objection Certificate (NOC)

This certificate ensures that your food truck is compliant with fire safety standards. Approach the local fire department to inspect your food truck. Implement necessary fire safety measures as advised. Renew the NOC periodically as required.

⇒ Vehicle Fitness Certificate

This certificate verifies the roadworthiness and safety of your food truck. Visit the Regional Transport Office (RTO) and submit necessary vehicle documents for inspection. Ensure that your food truck meets pollution control norms. Renew this certificate periodically, usually every year.

⇒ Trade License

A trade license is a municipal permit that legalizes your food business within a specific jurisdiction. Apply for a trade license from the local municipal corporation. Submit documents such as proof of identity, address, and property ownership or rental agreement. Renew this license annually.

⇒ GST Registration

If your projected annual turnover exceeds the GST threshold, you must register for Goods and Services Tax (GST). Register for GST online through the official portal. Provide required documents, including PAN, proof of address, and bank details. Continuous renewal is not required; however, ensures compliance with GST regulations.

⇒ Shop and Establishment Act Registration

This shop and establishment registration is necessary to regulate conditions of work and employment in commercial establishments. Apply at the local labour department or online, providing details about your food truck business, ownership, and employees. Renew this registration periodically, usually every year.

6. Food Truck Location

Selecting the right location for your food truck in India is a critical decision that significantly influences your business’s success. A strategic and well-thought-out location can attract a steady flow of customers and enhance your brand visibility.

Understand Your Target Audience

Analyze the demographics of the area to ensure it aligns with your target customer base. Consider factors like age, income levels, and preferences. Identify areas with high foot traffic, such as commercial districts, markets, and popular hangout spots.

⇒ Research Local Regulations

Check local regulations and permit requirements for operating a food truck. Different cities may have specific rules governing mobile food businesses. Ensure compliance with zoning laws to avoid legal issues. Some areas may have restrictions on where food trucks can operate.

⇒ Scout Popular Food Truck Hubs

Explore existing food truck hubs or clusters in the city. These areas often attract food enthusiasts, creating a favourable environment for your business. Evaluate the presence of competitors in the area. While competition can be healthy, ensure ample demand to support multiple food trucks.

⇒ Consider Events and Festivals

Participate in cultural events, festivals, and seasonal markets where footfall is naturally high. These occasions can provide exposure and attract diverse customers. Establish connections with event organizers to secure spots at popular gatherings. This can be a lucrative avenue for increased sales.

⇒ Proximity to Business Centers

Position your food truck near business centers, corporate offices, and IT parks. Professionals working in these areas often seek convenient and quick dining options. Capitalize on the lunchtime rush by strategically parking near office complexes during lunch hours.

⇒ Explore College Campuses

Consider locations near college campuses to tap into the student population. Colleges are often vibrant hubs with students looking for affordable, tasty food options. Stay informed about college events, fests, and cultural programs, as these can draw large crowds.

⇒ Collaborate with Local Businesses

Collaborate with local businesses, such as cafes, breweries, or retail outlets, to park your food truck in their vicinity. This can create a symbiotic relationship and expand your customer base.

⇒ Leverage Social Media and Reviews

Leverage social media platforms to gauge popular food trends and locations. Engage with your audience to understand their preferences. Pay attention to customer reviews and feedback on food delivery apps. Identify areas with a demand for specific cuisines.

⇒ Conduct Trial Runs

Before committing to a long-term spot, conduct trial runs in different locations. Observe customer response, sales, and overall feasibility. Interact with customers to gather feedback on the location. Positive feedback and repeat customers indicate a favourable spot.

⇒ Evaluate Accessibility and Parking

Choose locations with easy accessibility for both pedestrians and vehicles. Ensure that potential customers can reach your food truck without hassle. Be aware of parking regulations and availability. A secure and legal parking space is crucial for the smooth operation of your business.

7. Source Raw Materials

Launching a successful food truck business in India requires meticulous planning, and one crucial aspect is sourcing high-quality raw materials. Here are some important tips for sourcing raw materials:

• Local Wholesale Markets: Explore local wholesale markets, such as Azadpur Mandi in Delhi or Russell Market in Bangalore, for fresh produce. These markets offer a wide variety of fruits, vegetables, and other staples. Develop relationships with suppliers in these markets to negotiate prices and ensure a steady supply of quality ingredients.
• Farmers’ Markets: Consider sourcing from farmers’ markets to access fresh and, in some cases, organic produce directly from local farmers. Be mindful of seasonal variations in availability and prices, adapting your menu accordingly.
• Online Wholesale Platforms: Explore online platforms like Udaan, Jumbotail, or Metro Cash & Carry for the convenience of ordering bulk quantities from the comfort of your kitchen. Take advantage of bulk discounts offered by these platforms to optimize your procurement costs.

8. Food Truck Equipment

Some of the basic equipment types and where to source are listed below:

• Commercial Kitchen Equipment Suppliers: Purchase major kitchen equipment, such as grills, fryers, and refrigerators, from authorized dealers or reputable manufacturers. Opt for suppliers offering warranty services and prompt maintenance to minimize downtime.
• Online B2B Platforms: Platforms like Amazon Business or Industrybuying.com provide a range of kitchen equipment. Compare prices and read reviews to make informed decisions. Explore bulk purchase options on these platforms to benefit from discounts.
• Local Dealers and Manufacturers: For specific or customized equipment, connect with local manufacturers or dealers who may offer personalized solutions. Schedule visits to their showrooms or manufacturing units to inspect the quality of equipment before making a purchase.
• Rental Services: Consider renting certain equipment, especially if you’re starting on a budget. This can be cost-effective in the initial stages. As your business grows, you can invest in permanent equipment.
• Second-Hand Markets: Explore second-hand markets or online platforms for pre-owned kitchen equipment. Ensure that the equipment is in good working condition. Negotiate prices and inquire about the equipment’s history before making a purchase.

9. Arrange Funds

Starting a food truck business in India requires careful financial planning to cover various expenses. Clearly outline your expected expenses and revenue projections. Specify the amount needed for the food truck, permits, licenses, equipment, and working capital. Some of the popular ways to fund a food truck business in India:

• Personal Savings
• Family and Friends
• Government Schemes
• Angel Investors
• Crowdfunding
• Vendor Financing
• Equipment Leasing

Read:   Best Personal Loan Apps in India for Instant Cash

10. Design the Outside of a Food Truck

This is an important part of a food truck business. Your food truck must look clean, attractive, and well-organized. It is better to hire a designer. Talk to him about your specific requirements and let him design a blueprint.

The food truck must have a specific storage area, cooking station, and serving area. Also, plan for the outside area of the truck. Decorate with your company name, logo, and attractive food images.

11. Menu Selection 

As in any restaurant business, menu selection is an important factor in the overall success of this venture. Select your menu according to the food habits of the people of the locality where you are starting the business. You will need to create menus that can be cooked with a simple process but deliver different attractive tastes.

You may keep some ready-to-eat foods like ice cream, cake, pastry, soft drinks, etc. Successful food truck business operators serve gourmet cuisine, delicacies from other countries, health foods, and speciality sweets like unique cupcakes and exclusive chocolates.

12. Hire Manpower

Running a successful food truck business requires a well-organized team to handle various tasks efficiently. Here’s a breakdown of the essential roles and the manpower required for your food truck:

a) Chef/Cook

Responsibilities:

• Food preparation and cooking.
• Menu planning and innovation.

b) Kitchen Assistants

• Assisting the chef in food preparation.
• Maintaining kitchen cleanliness.

c) Serving Staff

• Taking customer orders.
• Handling transactions.
• Serving food to customers.
• Managing cash transactions.
• Handling billing and receipts.
• Operating the food truck.
• Ensuring timely arrival at designated locations.

f) Cleaner/Dishwasher

• Cleaning utensils and equipment.
• Maintaining overall cleanliness.

g) Manager/Owner

• Overseeing overall operations.
• Handling logistics and scheduling.
• Managing finances and inventory.

It is advisable to procure uniforms for your employees. It not only builds brand value but also creates confidence in customers to have food from your food cart.

13. Buy POS Software

Choosing the right POS software for your food truck business is a critical decision that can impact your daily operations and customer satisfaction. Evaluate your specific needs and consider the scalability and features offered by different POS solutions before making a final decision

Key POS software options for food trucks in India:

• Zomato Base
• HDPOS Smart
• eZee BurrP!

14. Promotion for Food Truck Business

Good food and the right service with a smile are very important aspects of a mobile food truck business. Choose a catchy name for your business expressing what you sell in a meaningful manner. Make an internet presence for your mobile food truck business. Creating a website is a must nowadays. Check our guide to create a website of your own or check the best e-commerce website builders if you want to create an online store.

On your website give all the menu details with price. Also, you can add some valued content about healthy food habits. Social media is now a useful tool for the mobile food business. You must have an account on Facebook and Twitter. These interactive social media will keep your customers updated about your happenings. You can also initiate a mobile application where people can check your real-time location, and menus, and can submit orders.

Frequently Asked Questions

Do i need special licenses to start a food truck.

Yes, several licenses are required, including a food license, health department permits, and a vehicle permit. It’s essential to comply with local municipal regulations.

What Types of Food Can I Serve in a Food Truck?

The type of food you can serve depends on your target audience and culinary expertise. Popular options include fast food, street food, snacks, and niche cuisines.

How Do I Choose the Right Location for My Food Truck?

Select locations with high footfall, such as busy streets, office areas, or popular markets. Consider local events, festivals, and fairs for additional opportunities.

How Can I Promote My Food Truck?

Utilize social media platforms for promotion. Engage with your audience, share appealing visuals of your dishes, and consider collaborations with influencers to boost visibility.

What Are the Operational Challenges of Running a Food Truck?

Operational challenges may include managing perishable ingredients, vehicle maintenance, fluctuating footfall, and adhering to health and safety standards.

How To Start A Food Truck Business In India?

Table of Contents:

1. Food Truck Business Plan In India

2. food truck business plan in india after pandemic, 3. how to open a food truck business in india, 4. how to create a food truck business plan in india, 5. gourmet food truck business in india.

A food truck is a large motor vehicle, like a small bus or trailer, where you can cook, prepare, and sell food. It has an onboard kitchen, and fast food like French fries, sandwiches, barbecued items, or any regional fare sells very well. Global cuisines such as Italian, French, and Mexican are also finding acceptance among food lovers. Along with food, they may sell cold beverages like soft drinks and water. Drawing inspiration from the food trucks or restaurants on wheels in the U.K. and the U.S.A., this new dining format has gained rapid popularity in India.

Running a Food Truck Business In India is a great opportunity for businessmen if they have a passion for serving good food. Unlike opening a restaurant, there is no need to buy or lease costly spaces. So, you can start it with a small investment. Some food truck owners park their vehicles inside apartment blocks, corporate offices, private areas, or schools. Many food trucks are modified into stationary kitchens or parked for business in basements of the mall or at private events. There are also a few food streets in major cities where you can start.

In fact, with the threat of Covid-19 following us everywhere, a food truck is a safer bet. People can wait for the food in the safety of their cars or can line up, maintaining social distance. The advantage of mobility in a food truck gives the owners access to multiple locations.

The pandemic has changed the food truck business: the vehicles do not ply their trade on the streets anymore but have changed their business strategy. Many have converted to cloud kitchens and deliver food through online partners. Customers hire Food trucks for special events like corporate gatherings, movie shoots, or weddings. Some also carry advertisements and banners for various brands, providing another source of income for the owner.

First of all, you should have a business plan which would set out the agenda for future growth. A well-documented business plan is significant if you want to raise funds from investors. The plan should include the following:

• A company description : List out the reasons why you want to start a food truck business. And how will it differ from the competition?
• A market analysis : You should write to hear who your target audience is, and which demography you would like to cater to?
• A product description : List out the food offering or, to be precise, give the menu details.

To start a food truck business in India , you will have to invest in the following:

• Advertising and promotion
• Disposables
• Ingredients
• Cooking systems
• A POS software system
• Staff uniform
• A food safety certification

There are also recurring costs like the following:

• Licenses and permits
• Staff payroll

In India, the average cost of starting a food truck business would be anywhere between Rs 15 lakhs to Rs 25 lakhs. It depends on the food that you will sell and the type of vehicle.

You can start a food truck business in India by taking the following steps:

1- Research

You have to research the food truck scene in your city for the following:

• The taste of people.
• What they want to eat in a hurry
• Existing businesses and their USPs.
• Demographics
• Spaces for selling food
• Busy office areas where potential customers can be found.
• Demand for the type of product that you would like to sell.

2- Choose a unique concept

Choose a concept that combines your unique style sensibilities with the interests of the target customers. You should select a name and logo that represents your business. The concept, logo, and name should:

• Be attention-grabbing and descriptive.
• Be memorable and stand out from others.
• Clearly express what you want to offer.

An interesting concept and a well-designed logo can induce a passer-by to become a customer.

Also Read: Best Chips Brands in India

3- Choose the right vehicle

The vehicle should be at least 18 feet long, and a new one can cost between 7-8 lakhs INR. The food trucks come in various sizes and are customised. The cost of decorating can vary between Rs 1 lakh to Rs 5 lakhs. You can select from any of the reputed truck brands like Ashok Leyland, Mahindra, and Mahindra, or Tata. If you want to save costs, you can purchase a second-hand one, which will be around half the price of a new one.

4- Licenses

• Food License: The Food Safety and Standards Authority of India (FSSAI) is the concerned Government body that issues licenses for any type of food business. It certifies that the food is safe for human consumption.
• NOC from the fire department: The trucks have boilers, fryers, gas appliances, grills, etc.-things that involve fire. So, a certificate from the fire department is compulsory.
• A license from the local Municipal corporation is required to serve food to the people.
• Commercial vehicle license: You have to obtain a commercial vehicle license from the RTO for selling food.

5- Equipment

Get the kitchen equipment and raw ingredients required for the food truck. The equipment will include cooking vessels, cutlery, stove, utensils, etc. You can also put a few tables and chairs, to give customers the option of sitting. If you can procure the raw materials straight from the farmers, that will be a great USP. All of these will set you back by around Rs 2 lakhs. Hire the staff required to run the food truck smoothly.

6- Market the business

If you put your brand name on the vehicle, and it moves all over the city, it will be a great marketing tool. You have to be active on social media to declare your presence.

7- Communication is the key

Since you are always on the move, you must have cell phones so that customers can communicate with you.

8- Choose the right location

Choose a street that has a regular flow of traffic to ensure large footfalls, and there are not many competitors. It should also be a place where there are young professionals or students. This is a category that is price-conscious and will prefer a food truck over a fine dining restaurant.

9- Insurance

Go for a proper insurance cover for your business and truck.

Ethnic and fusion food are available in these trucks, and they are often manned by reputed chefs. Each of them has a specific niche - one may specialise in yummy burgers; another may offer delicious Kathi-rolls.

In the food truck business, there is an uncertainty of not knowing how long you will have space and where you will be tomorrow. So many owners are diversifying into other businesses. Since they are already in the food business, opening a restaurant is a good option.

The Indian restaurant industry is one of the fastest-growing in the world and is expected to reach Rs 5.99 lakh crore by 2022-23. Here, we will take you through the steps of how to open a restaurant :

• Arrange suppliers and vendors for your restaurant.
• Decide the concept and location: You have to factor in the total capital that you can invest. The Average Price per Customer (APC) gives you an idea about the money that a customer will normally spend in your restaurant. In a QSR, it usually ranges from Rs 50-Rs 500.
• Design an appetising menu: After deciding the concept, you must plan the cuisine and theme of the restaurant.
• Evaluate the costs involved. The average size of a Quick Service Restaurant (QSR) would be around 450 square feet, and the rent will be about Rs 40,000 per month.
• Get investments: You can arrange the seed money either through self-funding, a loan or through Angel/VC funding.
• Get all the licenses required.
• Hire the right staff.
• Install the right technology.

The food truck is a profitable business where you can serve lip-smacking food and earn good profits, both at the same time. We hope that the above article will open the doors for you to this new enterprise.

Also read: OkShop- India's Online Digital Dukan! What type of permissions are required before starting any business? How to Open a Pet Care Center? Read step-by-step guide Are You A History Buff? Open an Antique Shop to Share your Passion

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You have a dream to enter the food industry but looking for an affordable solution? Food cart business is the most ideal solution for you as you can start this business in a very economical and pocket friendly way. This is a food business with minimum risk, lowest investment and it is most popular among the food lovers in India. This is the most suitable business idea for upcoming food entrepreneurs as in recent times food cart business is flourishing like anything as craze of street food among foodies is unbelievable. So in case you are planning to enter the food business, it is advisable to start a food cart business as compared to a restaurant. But keep in mind that it is not that easy at all as it sounds. You need to do thorough research before starting any business whether it is a small or a big business.

Starting any business is not a child’s play so before starting a food cart business, you have to do a detailed research on various points listed below: –

• Complete market research of product that you are planning to sell
• Demography and detail about who is your target customer?
• Most important is the location where you are planning to put up a food cart
• Food business licensing and certificates like FSSAI, etc.
• Study the kind of existing food carts and competitors in that area
• Taking utmost care about hygiene which is very important in these times
• Vendor from whom you will be purchasing the food cart is also important as the design, look and feel of your cart will be very important to attract your customers.

Later, you can also plan to buy a software or app for your food cart or food truck or POS (Point of Sales) solution so that your business is completely streamlined. For the beginning you can start without it just to keep your investment in limit but you have to keep this in mind and keep a separate budget for this as you will definitely require this when your business grows in coming months.

Budget estimate for your food cart / food truck business*

• Custom designed food cart or food truck = Rs.50,000 approx.
• Kitchen equipment = Rs.15,000 approx.
• Raw material to start with = Rs.10,000 approx.
• Licensing and registration fee = Rs.10,000 approx
• Staff including chef & helping staff = Rs.30,000 approx.
• Initial marketing budget for leaflets, banners, posters, etc. = Rs.5,000 approx.
• Miscellaneous expenses = Rs.5,000 approx.

Total setup initial cost of a food cart business comes out be Rs.1,25,000* approx and it may vary depending on various other aspects.

Crucial points you need to consider while starting a food cart business

Product – This is the first and most important factor around which your whole food cart business will revolve around. It may be possible that you have a different taste or liking but before starting a business you have to consider the taste and demand of your target customer. Generally a food cart serves fast food and quick serving products but if you have a different USP and want to stand out of others in competition, you can think of something more innovative.

Location – It is very important factor as far as your investment and pricing will be decided. The location that you have to purchase on rent will cost you depending on the location & area and also based on the location you can set the price of your product. As depending on the location and gentry in that location you can set the product price. Also, depending on the location you can find out what kind of competition you have in that area. You need to visit the location you are thinking about to understand the whole situation especially in weekends.

Licensing & Registrations – FSSAI (Food Safety and Standard Authority of India) registration for street vendors is needed to be taken by everyone in India. You can contact Municipal Corporation for the same and can easily apply for registration if you have all valid documents. The fee may vary depending on the state you are living.

Cart & Equipment – The food cart cost will vary from Rs.25,000 to some lacs depending on the size, quality, product you are planning to sell & few other factors. A decent metallic cart will be designed and fabricated by a fabricator in around Rs.50,000. You will also require to purchase equipments and commercial LPG cylinder which is one of the recurring cost.

Raw material – Your raw material cost is also important and it will also depend on the product you are selling. It is important that you cannot exceed the product cost otherwise your customers will move to some other alternate. Also, you cannot decrease the cost too much as you need to earn profit out of it. That is the reason it is important to find an optimum pricing for your product.

Staff & Manpower – Maximum two to three persons are enough for running a food truck business as it is a small business and being a startup and you as a rising entrepreneur would surely like to cut down maximum cost on manpower. You can tell your staff to prepare semi finished products so that efforts can be minimized.

Advantages of Starting a Food Cart Business

The low startup cost is one of the major factors that help you to start the food business as compared to a restaurant. There are many popular brands in food chains who have also started as a food carts.

Challenges in a Food Cart Business

Generally, food carts have to face lot of issues from the local police and authorities. Your competitors who are more influential also may create problems. Weather can also be another challenge because in that case you may experience low or maybe absolutely no business and sale that day.

Food cart business needs lot of ground work but that’s for sure if you have properly focused, have good quality food, keep care of hygiene, have good cost, etc. you will definitely succeed in this business.

• Food Business
• Small Business

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Tata Capital > Blog > Loan for Business > How To Start Food Truck And Top 5 Food Truck Business Ideas In India

How To Start Food Truck And Top 5 Food Truck Business Ideas In India

A food truck business houses a mobile kitchen in a large motor vehicle. This mobile kitchen can serve different areas of the city or the metro. In India, we are already used to buying Indian snacks and other street foods sold on pushcarts, etc. A food truck is a step up from these mobile carts. Also, food trucks in India serve various eclectic foreign cuisines like Italian, Mexican, Chinese, etc., to tempt the taste buds. The food truck experiment has been very popular in the U.S. and other countries, and it is beginning to take off in a big way in India as well. Food truck ideas are popular because:

• A food truck can park and do business from anywhere in the city, increasing its reach.
• A mobile food truck enables the owner to be mobile and access most areas for selling food and other edible items. Today it could be an apartment block; tomorrow it could be an office complex; and the day after, a school.
• Both hot and cold items can be sold from a food truck. Piping hot food can be quickly cooked and served according to the diner’s wishes. 
• A food truck naturally enables people to maintain social distance norms as buyers can safely park a certain distance away from the food truck and other diners or simply eat their food in the comfort of their car.
• A wide variety of vegetarian and non-vegetarian dishes, including various other cuisines, are available on food trucks. Ideas for a food truck could range from cheesy pizza to spicy Chinese food to delicious tacos and burritos or ethnic dishes like a Kathi roll, depending on the food truck’s choice. These can be accompanied by a soft drink or ice cream if you so desire. This could be one of the most successful food truck ideas in India. 
• Food truck ideas are emerging as a popular novelty in India and, according to ‘the Indian Retailer’, the business is expected to register an annual growth rate of 8.4%. 

The Top 5 Food Truck Business Ideas for Indians

Indians, as we have iterated before, are already accustomed to buying food from mobile stalls called “thelas,” or pushcarts. The food truck concept is a notch higher than the traditional portable stalls.

The following are some food truck business ideas in India you can dabble with: 

• Freshly prepared sushi rolls : Indians love Japanese (and Chinese) food. This would appeal to the palates of many millennials and could be a successful food truck idea in India.
• Food trucks focused on serving only organic food: Because of the health benefits, this food truck idea would appeal to the health-conscious segment. With an increasing incidence of lifestyle diseases in India, this healthy food truck idea could potentially appeal to many people.
• Fusion burger food truck: This food truck business idea would appeal to millennials and Gen-Z customers, especially if you decide to serve Asian sauces and traditional burgers or even give the burgers an Indian twist.
• Shawarma: A shawarma food truck business idea could appeal to meat lovers, especially if served with traditional dill pickles that replicate the Lebanese style of making shawarma. Using pita bread and an assortment of vegetables will enhance the taste and be shawarma with a difference.
• Gourmet gelato ice-creams: Indians are famous for their sweet tooth, and the Indian weather is most suitable for ice-creams. Customers will relish gourmet gelato ice cream in exotic flavours, especially to round off a lovely afternoon meal. This could be one of the most successful food truck ideas in India. 

How to Start a Food Truck Business?

Intrigued by the food truck business idea? Here are some of the necessary steps you have to take to start your dream food business:

• Start with market research to analyze the market needs in terms of defined foods. A successful food truck idea will enable you to establish your market niche and develop a unique selling proposition for your food truck. This will also allow product differentiation, a unique food concept to compete for food trucks’ attention and facilitate establishing your target demographic. Creating a transparent, differentiated logo and a one-of-a-kind name for your food truck idea is necessary.
• Establish all your company’s credentials and obtain the required licenses.  
• Select the menu items for your food truck, whether they will be hot or cold items. This will also help determine the mobile kitchen dimensions and other kitchen parameters.
• Buy essential equipment such as a good, sturdy, elongated truck that can accommodate a mobile kitchen, cooking systems, a point of sale system to record transactions, staff uniforms, etc.
• Devise advertising and promotion strategies for your food truck and insurance.
• Obtain the licenses and certifications: Obtaining food safety certifications is also necessary from the FSSAI, or the Food and Safety Standards of India, and a fire safety certification from the fire department to certify that your cooking area, boiler, gas, and grills are all fire protected. The local municipality should also give you clearance to supply food to the public in the different areas within the city. Lastly, a commercial vehicle license to carry on your ideas for a food truck business should be obtained from the Road Safety department.
• Ensure that there is working capital for regular, recurring expenses like cooking ingredients, fuel, licenses, and permits, which are renewable annually. You must also provide for employee costs.  

Cost Outlay and Budgeting for How to Start a Food Truck Business

Every food truck business is different, meaning their cost outlay and budgeting will also be different: 

Total cost: The cost of opening a food truck idea can vary from Rs 15 lakhs to Rs 25 lakhs.

Truck cost: A good, wide-bodied, elongated truck to accommodate your mobile kitchen would cost anywhere from Rs 8 lakhs to Rs 12 lakhs. You have a wide assortment of truck manufacturers and brands to choose from to launch your food truck idea in India.

Equipment cost: Buying and installing state-of-the-art kitchen equipment would cost approximately Rs 2 lakhs to Rs 3 lakhs.

Licences and advertising costs: This could cost up to Rs 1 lakh. 

Working capital: You need to provide at least Rs. 1 lakh to Rs. 2 lakh for the liquidity reserve and working capital to buy groceries, provisions, and kitchen ingredients. 

You can quickly obtain a business loan from Tata Capital to kick-start your food truck ideas in India.

Tata Capital’s Business Loans

With TATA Capital, you can fund your dream food truck business: 

• Loan corpus: The loan amount varies from Rs 5 lakh to Rs 75 lakh . Your financial requirements for funding the setting up of a food truck idea in India can be very quickly met.
• Loan tenure : The loan tenure varies from 12 months to 36 months. You can easily plan your cash flows and reschedule your principal repayments and interest payments according to your convenience.
• Collateral or security: The above loans are unsecured loans that do not require offering your business or personal assets as collateral.
• Eligibility for applying for a business loan : The eligibility conditions are simple and include the following:

1. The age of the applicant for a business loan should be between 25 and 65 years old.

2. The business must have a profitable track record for three consequent financial years

3. The business’s sales revenue and turnover should indicate a positive upward trend.

4. Your CIBIL score must be 700 at the time of applying.

5. A qualified chartered accountant should audit all the financial books of account and financial statements.

• KYC documents are required for securing a Tata Capital Business Loan: 1. All identity and address proof documents 2. Proof of business ownership, including partnership deeds, sole proprietor declaration etc. 3. Licence documents for carrying out the business and GST TIN 4. Documents relating to the company’s incorporation 5. Bank statements for the last six months certified by the concerned banker 6. IT returns and all business financial statements, including audited balance sheets and profit & loss statements.
• Interest rates on a Tata Capital business loan: Interest rates on a Tata Capital business loan start at 19% p.a. The final interest rate levied would depend on the final assessment of your financial statements, CIBIL score, and other factors. The interest rate for your loan can be fixed or variable. In a fixed interest rate business loan, the EMIs remain fixed, and in the case of a floating interest rate loan, the EMI amounts will be variable. The floating interest rates are linked to the benchmark RBI’s repo-linked lending rate.
• EMI calculator: Tata Capital provides an EMI calculator that enables you to structure your EMI amounts according to your cash flows and financial convenience. You have to enter the principal amount, the interest rate, and the loan tenure to find out the EMI installments payable by you. Fixed EMIs have fixed payment options, and in structured EMIs, you can customize your payments at your convenience to launch your food truck idea.

Key Takeaways

The food truck business idea has tremendous potential to be a growth sector in the economy. You can please your clientele’s palates by serving them piping hot or cold, fresh gourmet and exotic dishes at a reasonable price. If your USP is to market food products sold in gourmet, fine-dine restaurants, the public at large can derive enjoyment from eating such dishes at reasonable prices. Who can say, if you successfully start materializing your ideas for the first food truck business, you can even end up having a country-wide food truck business chain, couldn’t you? Don’t delay; if you have the means, strategy, and an excellent idea, contact Tata Capital today to obtain a business loan to fund your food truck and start your exciting food truck journey.

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How to Start a Food Cart Business

Starting a food cart business can be very profitable. With proper planning, execution and hard work, you can enjoy great success. Below you will learn the keys to launching a successful food cart business.

Importantly, a critical step in starting a food cart business is to complete your business plan. To help you out, you should download Growthink’s Ultimate Business Plan Template here .

Download our Ultimate Business Plan Template here

14 Steps To Start a Food Cart Business :

• Choose the Name for Your Food Cart Business
• Develop Your Food Cart Business Plan
• Choose the Legal Structure for Your Food Cart Business
• Secure Startup Funding for Your Food Cart Business (If Needed)
• Secure a Location for Your Business
• Register Your Food Cart Business with the IRS
• Open a Business Bank Account
• Get a Business Credit Card
• Get the Required Business Licenses and Permits
• Get Business Insurance for Your Food Cart Business
• Buy or Lease the Right Food Cart Business Equipment
• Develop Your Food Cart Business Marketing Materials
• Purchase and Setup the Software Needed to Run Your Food Cart Business
• Open for Business

1. Choose the Name for Your Food Cart Business

The first step to starting a food cart business is to choose your business’ name.  

This is a very important choice since your company name is your brand and will last for the lifetime of your business. Ideally you choose a name that is meaningful and memorable. Here are some tips for choosing a name for your food cart business:

• Make sure the name is available . Check your desired name against trademark databases and your state’s list of registered business names to see if it’s available. Also check to see if a suitable domain name is available.
• Keep it simple . The best names are usually ones that are easy to remember, pronounce and spell.
• Think about marketing . Come up with a name that reflects the desired brand and/or focus of your food cart business.

2. Develop Your Food Cart Business Plan

One of the most important steps in starting a food truck business is to develop your business plan . The process of creating your plan ensures that you fully understand your market and your business strategy. The plan also provides you with a roadmap to follow and if needed, to present to funding sources to raise capital for your business.

Your business plan should include the following sections:

• Executive Summary – this section should summarize your entire business plan so readers can quickly understand the key details of your food cart business.
• Company Overview – this section tells the reader about the history of your food cart business and what type of food cart business you operate. For example, are you a traditional food cart, mobile food truck, or a concession stand?
• Industry Analysis – here you will document key information about the food truck industry. Conduct market research and document how big the industry is and what trends are affecting it.
• Customer Analysis – in this section, you will document who your ideal or target customers are and their demographics. For example, how old are they? Where do they live? What do they find important when purchasing products like the ones you will offer?
• Competitive Analysis – here you will document the key direct and indirect competitors you will face and how you will build competitive advantage.
• Marketing Plan – your marketing plan should address the 4Ps: Product, Price, Promotions and Place.
• Product : Determine and document what products/services you will offer 
• Prices : Document the prices of your products/services
• Place : Where will your business be located and how will that location help you increase sales?
• Promotions : What promotional methods will you use to attract customers to your food cart business? For example, you might decide to use pay-per-click advertising, public relations, search engine optimization and/or social media marketing.
• Operations Plan – here you will determine the key processes you will need to run your day-to-day food truck operations. You will also determine your staffing needs. Finally, in this section of your plan, you will create a projected growth timeline showing the milestones you hope to achieve in the coming years.
• Management Team – this section details the background of your company’s management team.
• Financial Plan – finally, the financial plan answers questions including the following:
• What startup costs will you incur?
• How will your food cart business make money?
• What are your projected sales and expenses for the next five years?
• Do you need to raise funding to launch your business?

Finish Your Business Plan Today!

3. choose the legal structure for your food cart business.

Next you need to choose a legal structure for your food cart business and register it and your business name with the Secretary of State in each state where you operate your business.

Below are the five most common legal structures:

1) Sole proprietorship

A sole proprietorship is a business entity in which the food truck owner and the business are the same legal person. The owner of a sole proprietorship is responsible for all debts and obligations of the business. There are no formalities required to establish a sole proprietorship, and it is easy to set up and operate. The main advantage of a sole proprietorship is that it is simple and inexpensive to establish. The main disadvantage is that the owner is liable for all debts and obligations of the business.

2) Partnerships

A partnership is a legal structure that is popular among small businesses. It is an agreement between two or more people who want to start a food cart business together. The partners share in the profits and losses of the business. 

The advantages of a partnership are that it is easy to set up, and the partners share in the profits and losses of the business. The disadvantages of a partnership are that the partners are jointly liable for the debts of the business, and disagreements between partners can be difficult to resolve.

3) Limited Liability Company (LLC)

A limited liability company, or LLC, is a type of business entity that provides limited liability to its owners. This means that the owners of an LLC are not personally responsible for the debts and liabilities of the business. The advantages of an LLC for a food cart business include flexibility in management, pass-through taxation (avoids double taxation as explained below), and limited personal liability. The disadvantages of an LLC include lack of availability in some states and self-employment taxes.

4) C Corporation

A C Corporation is a business entity that is separate from its owners. It has its own tax ID and can have shareholders. The main advantage of a C Corporation for a food cart business is that it offers limited liability to its owners. This means that the food truck owners are not personally responsible for the debts and liabilities of the business. The disadvantage is that C Corporations are subject to double taxation. This means that the corporation pays taxes on its profits, and the shareholders also pay taxes on their dividends.

5) S Corporation

An S Corporation is a type of corporation that provides its owners with limited liability protection and allows them to pass their business income through to their personal income tax returns, thus avoiding double taxation. There are several limitations on S Corporations including the number of shareholders they can have among others.

Once you register your food cart business, your state will send you your official “Articles of Incorporation.” You will need this among other documentation when establishing your banking account (see below). We recommend that you consult an attorney in determining which legal structure is best suited for your company.

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Not only does BusinessRocket have a 4.9 out of 5 rating on TrustPilot (with over 1,000 reviews) because of their amazing quality…but they also guarantee the most affordable incorporation packages and the fastest processing time in the industry.

4. Secure Startup Funding for Your Food Cart Business (If Needed)

In developing your food cart business plan, you might have determined that you need to raise funding to launch your business. 

If so, the main sources of funding for a food cart business to consider are personal savings, family and friends, credit card financing, bank loans, crowdfunding and angel investors. Angel investors are individuals who provide capital to early-stage businesses. Angel investors typically will invest in a food cart business that they believe has high potential for growth.

5. Secure a Location for Your Business

To find a location for your food cart business, start by looking for areas with a lot of foot traffic. You’ll also want to consider whether there are enough people in the area that will be interested in your type of food. Additionally, make sure the location has space for your food cart and is in a safe area. Finally, check with your local government to see if there are any restrictions on food trucks in the area. 

6. Register Your Food Cart Business with the IRS

Next, you need to register your business with the Internal Revenue Service (IRS) which will result in the IRS issuing you an Employer Identification Number (EIN).

Most banks will require you to have an EIN in order to open up an account. In addition, in order to hire employees, you will need an EIN since that is how the IRS tracks your payroll tax payments.

Note that if you are a sole proprietor without employees, you generally do not need to get an EIN. Rather, you would use your social security number (instead of your EIN) as your taxpayer identification number.

7. Open a Business Bank Account

It is important to establish a bank account in your food cart business’ name. This process is fairly simple and involves the following steps:

• Identify and contact the bank you want to use
• Gather and present the required documents (generally include your company’s Articles of Incorporation, driver’s license or passport, and proof of address)
• Complete the bank’s application form and provide all relevant information
• Meet with a banker to discuss your business needs and establish a relationship with them

8. Get a Business Credit Card

You should get a business credit card for your food cart business to help you separate personal and business expenses.

You can either apply for a business credit card through your bank or apply for one through a credit card company.

When you’re applying for a business credit card, you’ll need to provide some information about your business. This includes the name of your business, the address of your business, and the type of business you’re running. You’ll also need to provide some information about yourself, including your name, Social Security number, and date of birth.

Once you’ve been approved for a business credit card, you’ll be able to use it to make purchases for your business. You can also use it to build your credit history which could be very important in securing loans and getting credit lines for your business in the future.

9. Get the Required Business Licenses and Permits

There are a few licenses and permits you will need to start a mobile food business. You will need a food handler’s permit, a business license, and a zoning permit. You may also need a health permit depending on your state and local laws. Check with your local authorities to find out what you will need.

10. Get Business Insurance for Your Food Cart Business

The type of insurance you need to operate a food cart business depends on the size of your business and the risks involved.

Some business insurance policies you should consider for your food cart business include:

• General liability insurance : This covers accidents and injuries that occur on your property. It also covers damages caused by your employees or products.
• Auto insurance : If a vehicle is used in your business, this type of insurance will cover if a vehicle is damaged or stolen.
• Workers’ compensation insurance : If you have employees, this type of policy works with your general liability policy to protect against workplace injuries and accidents. It also covers medical expenses and lost wages.
• Commercial property insurance : This covers damage to your property caused by fire, theft, or vandalism.
• Business interruption insurance : This covers lost income and expenses if your business is forced to close due to a covered event.
• Professional liability insurance : This protects your business against claims of professional negligence.

Find an insurance agent, tell them about your business and its needs, and they will recommend policies that fit those needs. 

11. Buy or Lease the Right Food Cart Business Equipment

To start a food cart business, you will need a few pieces of equipment. First, you will need a cart or stand. You will also need cooking equipment, such as a stove or grill, and serving utensils. Finally, you may need a refrigerator or freezer to store food.

12. Develop Your Food Cart Business Marketing Materials

Marketing materials will be required to attract and retain food truck customers to your business.

The key marketing materials you will need are as follows:

• Logo : Spend some time developing a good logo for your food cart business. Your logo will be printed on company stationery, business cards, marketing materials and so forth. The right logo can increase customer trust and awareness of your brand.
• Website : Likewise, a professional food cart business website provides potential customers with information about the products you offer, your company’s history, and contact information. Importantly, remember that the look and feel of your website will affect how customers perceive you..
• Social Media Accounts : establish social media accounts in your company’s name. Accounts on Facebook, Twitter, LinkedIn and/or other social media networks will help customers and others find and interact with your food cart business.

13. Purchase and Setup the Software Needed to Run Your Food Cart Business

You will need software to manage your food cart business, including a point of sale (POS) system, financial software, and inventory management software. You may also need software to track your business expenses and create invoices. Choose software that is compatible with your computer system and that will meet your specific needs.

14. Open for Business

You are now ready to open your food cart business. If you followed the steps above, you should be in a great position to build a successful business. Below are answers to frequently asked questions that might further help you.

How to Finish Your Ultimate Business Plan in 1 Day!

Don’t you wish there was a faster, easier way to finish your food cart business plan?

With Growthink’s Ultimate Business Plan Template you can finish your plan in just 8 hours or less!

How to Start a Food Cart Business FAQs

Is it hard to start a food cart business.

No, it is easy to start a food truck business. You just need to know what you're doing and have a good business plan. There are many resources available to help you get started, including books, websites, and even food carts for sale.

How can I start a food cart business with no experience?

The best way for aspiring food truck owners to start a food cart business with no experience is to do some research and get organized. Plan out your food truck concept , create a budget, and learn everything you can about the industry. Networking with other food cart businesses can also be helpful in learning the ropes.

What type of food cart business is most profitable?

There is no definitive answer to this question because profitability depends on many factors including location, target market, and competition. However, in general, a profitable type of food cart business is a mobile hot dog stand. This type of food cart business can offer a variety of hot dogs, sausages, and hamburgers that are affordable and are enjoyed by a wide range of customers. In addition, a mobile hot dog stand is perfect for catering events and providing food for large groups. Finally, hot dogs typically do not cost too much, and can therefore be sold at a healthy margin. 

How much does it cost to start a food cart business?

Food truck startup costs can vary depending on a number of factors, including the type of food and the size of the business. However, in general, you can expect to spend between $2,000 and $10,000 to start a food cart business. This includes the price of the food, cart, and marketing expenses. 

What are the ongoing expenses for a food cart business?

The most significant ongoing expense for a food cart business is the cost of the food itself. Other ongoing expenses may include the cost of repairs or maintenance for the cart or truck, and marketing and advertising expenses. 

How does a food cart business make money?

There are a few different ways a successful food truck business can make money. The simplest way is to sell food items. Another way is to offer catering services, which can be more profitable since the business can charge a higher price for the food.

Is owning a food cart business profitable?

Owning a food cart business can be profitable because it offers a low-cost way to start a business. There is a growing demand for food carts, and you can customize your food cart to meet your customers' needs.

Why do food cart businesses fail?

One of the most common reasons food cart businesses fail is that they don't have a solid food truck business plan. To be successful, you need to have a plan for marketing your cart, attracting customers, and growing your business. You also need to understand the costs associated with running your cart, from the food and supplies you need to the rent or lease for your space. If you're not prepared to handle the financial side of things, your business will fail. In addition, become familiar with the regulations governing food carts in your area, as there may be specific requirements you need to meet. Failing to comply with these regulations can shut your business down.

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Mastering the Food Business: Starting a Chain & Food Truck in India

A food chain business is a type of business that involves the production, distribution, and sale of food products to consumers. It can take the form of a restaurant, cafe, food truck, fast-food chain, or any other type of food service business. Food chain businesses can offer a wide range of food products, from traditional Indian cuisine to international fast food options. Some food chain businesses specialize in a particular type of cuisine, while others offer a variety of food options to cater to different tastes and preferences.

Starting a food chain business can be a lucrative venture, but it requires careful planning, market research, and investment in infrastructure, equipment, and skilled staff. It also involves obtaining the necessary licenses and permits to operate a food business, ensuring compliance with food safety regulations, and developing effective marketing strategies to attract and retain customers.

What do we need to start a food chain business in India?

Starting a food chain business in India can be a profitable and rewarding venture, but it requires careful planning and preparation. Here are some steps to help you get started:

• Conduct market research:
• Develop a business plan:
• Choose a location:
• Obtain necessary licenses and permits:
• Hire staff:
• Design your menu:
• Source quality ingredients:
• Invest in equipment:
• Launch your food chain:

Starting a food chain business in India can be challenging, but with proper planning, preparation, and execution, you can build a successful and profitable business.

How to make a Business plan

A business plan is a written document that outlines your business goals, strategies, marketing plan, financial projections, and operational procedures. Here are some steps to help you create a business plan:

• Executive summary : Write a brief overview of your business, including your mission statement, target market, and unique selling proposition.
• Business description : Describe your business in more detail, including the products or services you offer, your business model, and your industry.
• Market analysis : Conduct market research to identify your target market, competition, and industry trends. Analyze this information to determine the demand for your product or service and to identify opportunities and challenges in the market.
• Marketing plan : Develop a marketing plan to reach your target audience, including strategies for advertising, promotions, and customer outreach.
• Operations and management : Outline your operational procedures, including staffing, production, and distribution. Describe your management structure and the roles and responsibilities of each team member.
• Financial projections : Create a financial plan that includes your revenue and expense projections, cash flow analysis, and profit and loss statement. This will help you determine the amount of funding you need to start and grow your business.
• Funding : Determine how you will finance your business, including personal savings, loans, or investments from partners or investors.
• Executive summary : Summarize your business plan in a brief executive summary that highlights the most important aspects of your business and your goals for the future.

Choose a suitable location

Choosing the right location for your business is critical to its success. Here are some factors to consider when choosing a suitable location:

• Target market
• Competition
• Infrastructure
• Zoning regulations
• Future growth

Design the interior of your space

Designing the interior of your business space is important to create an appealing and comfortable environment for your customers and employees.

Here are some steps you can take to design the interior of your space:

• Determine the theme
• Create a layout
• Choose a color scheme
• Select furniture and fixtures
• Accessibility

Remember, the design of your interior space should reflect your brand, be functional, and create a comfortable environment for your customers and employees. It should also be consistent with your business goals and budget.

Get your suppliers

• Getting reliable suppliers is crucial for the success of any business, especially in the food industry. Here are some steps you can take to find and secure reliable suppliers:
• Determine your needs.
• Research potential suppliers
• Check references and credentials:
• Negotiate prices and terms
• Establish a relationship
• Manage your inventory

Monitor supplier performance

Getting reliable suppliers takes time and effort, but it is an important part of building a successful business. Work with your suppliers to establish a partnership that helps you both achieve your goals.

Make your Licenses and Permits

To legally operate a food chain business in India, you will need to obtain various licenses and permits. Here are some of the key licenses and permits you may need:

• Food Safety and Standards Authority of India (FSSAI) license
• Health trade license
• GST registration
• Shop and Establishment Act registration
• Fire safety certificate
• Signage license
• Labor registration

How to appoint employees

Appointing an employee involves several steps, and the process can vary depending on the organization’s size, structure, and specific requirements. Here are some general steps to follow when appointing an employee:

• Define the job role and responsibilities
• Develop a job posting
• Review applications and resumes
• Conduct interviews
• Check references
• Make an offer
• Onboard the employee

Branding of your business

Branding is the process of creating a unique identity for your business that distinguishes it from competitors in the market. Here are some steps to consider when branding your business:

• Define your brand identity
• Develop your brand name and logo
• Create a brand messaging strategy
• Establish a brand voice and tone
• Develop a brand style guide

Consistently promote your brand

A food truck business is a type of mobile food service operation that involves serving and selling food from a truck or similar vehicle. Food trucks are typically equipped with a kitchen and food preparation facilities, allowing them to prepare and serve a variety of meals on-the-go. Food trucks are known for their flexibility and mobility, as they can operate in different locations, such as urban areas, office parks, college campuses, events, and popular city spots, to reach customers in various settings.

Food truck businesses offer a wide range of culinary offerings, from traditional fast food items like burgers and tacos to gourmet meals, ethnic cuisine, desserts, and more. Many food trucks specialize in a particular type of cuisine or offer unique and creative menu options to attract customers and stand out in the competitive food industry.

Is a food truck a profitable business?

Yes, a food truck can be a profitable business if managed effectively. Like any business, profitability depends on various factors such as location, menu, pricing, marketing, operational efficiency, and customer demand. With careful planning and execution, a food truck business can generate significant revenue and profits.

Here are some key factors that can contribute to the profitability of a food truck business:

• Menu and Pricing
• Operational Efficiency
• Marketing and Branding
• Customer Service
• Cost Management

How to choose Right Location for a food truck business?

Choosing the right location for your food truck business is critical to its success. The right location can significantly impact your customer base, sales, and overall profitability.

Here are some tips to help you choose the right location for your food truck:

• Research the Market
• Know the Local Regulations
• Scout for High-Traffic Areas
• Consider Parking and Accessibility
• Analyze Demographics
• Check for Events and Activities
• Test Multiple Locations

What equipment and raw material do we need?

To start a food truck business, you will need a variety of equipment and raw materials to prepare and serve food. The specific equipment and raw materials you will need will depend on the type of cuisine you plan to offer and the menu items you plan to serve. Here are some general categories of equipment and raw materials commonly used in food truck operations:

• Cooking Equipment : This may include items such as grills, fryers, stovetops, ovens, microwaves, steamers, and other cooking appliances depending on your menu items.
• Refrigeration Equipment : You will need refrigerators and freezers to store perishable ingredients such as meats, vegetables, dairy products, and other perishable items.
• Food Preparation Equipment : This may include cutting boards, knives, food processors, blenders, mixers, and other equipment for preparing ingredients and assembling menu items.
• Serving Equipment : You will need serving equipment such as food warmers, steam tables, chafing dishes, serving utensils, and containers for packaging and serving food to customers.
• Storage Equipment : You will need storage equipment such as shelving, cabinets, and containers to store dry goods, utensils, and other supplies.
• POS (Point of Sale) System : A POS system is essential for processing customer orders, tracking sales, and managing transactions.
• Raw Materials and Ingredients : You will need a steady supply of raw materials and ingredients to prepare your menu items, such as fresh produce, meats, spices, dairy products, grains, and other food items.
• Packaging and Utensils : You will need packaging materials such as take-out containers, cups, napkins, utensils, and other disposable or reusable serving items.
• Cleaning Supplies : You will need cleaning supplies such as detergents, sanitizers, brushes, towels, and other cleaning equipment to maintain cleanliness and hygiene in your food truck.
• Safety and Compliance Equipment : You may need safety equipment such as fire extinguishers, first aid kits, and signage to comply with health and safety regulations.

It’s important to research and identify the specific equipment and raw materials you will need based on your menu items, local regulations, and operational needs.

Licenses & Permits for Food Truck Business in India:

Starting a food truck business in India requires obtaining various licenses and permits as per the local regulations and laws. The specific licenses and permits you may need can vary depending on the location of your food truck, the type of cuisine you are serving, and other factors. Here are some common licenses and permits required for operating a food truck business in India:

Food Safety and Standards Authority of India (FSSAI) License

• Local Municipal Corporation License
• Health Department Permits
• Police Department Permission
• Fire Safety Clearance
• Vendor Association Memberships

Investment for Food Truck Business:

If you want to start a Food Truck Business Plan then you have to invest approx 5 lakh to 10 lakh depending on the nature of food you’ll serve from your food truck.

• A Commercial vehicle cost :Rs 2 lakh – 10 lakh.
• Fabrication (bodybuilder shop) :1 Lakh.
• The total cost of kitchen, Chairs & tables  :Rs 2 lakh.
• Raw material for 2 weeks :Rs 30,000
• License & Permits cost :Rs 50,000.
• Menu Displayed, Uniform Dress, Water & 2 Dustbin cost :Rs 10,000.

Manpower Required

• Delivery Boy (For Home delivery)

Where to buy food trucks in India?

There are several options to buy a food truck in India. Here are some common avenues to consider:

• Customized Food Truck Builders
• Online Marketplaces
• Automotive Dealerships
• Food Truck Expos and Events
• Second-hand Markets

In summary, both food chain and food truck businesses offer unique opportunities in the food industry, each requiring careful planning, strategic execution, compliance with regulations, and a focus on customer satisfaction to achieve success and profitability.

For More Details :

Email id: [email protected]

About the Author: GetDistributors Editor

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Indian Street Food Cart Business Idea Description in 5 W’s and 1 H Format

By alex ryzhkov, get full bundle.

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Are you ready for a culinary adventure that will transport your taste buds straight to the vibrant streets of India? Look no further than Mr. Rahul Patel's exciting new street food cart business! Combining convenience, affordability, and a mouthwatering variety of snack and meal options inspired by traditional Indian cuisine, this venture is set to revolutionize the American food scene. With strategic locations in high-traffic areas across major cities, it's never been easier to indulge in the flavors of India. As the demand for authentic street food continues to soar, Mr. Patel is on a mission to deliver an unforgettable dining experience that captures the essence of Indian culture. Leveraging technology and innovation, this enterprising entrepreneur is poised to bring operational efficiency and unparalleled customer engagement to the industry. With the US market's staggering appetite for diverse and flavorful foods, the potential for success in the Indian street food cart business is simply irresistible. So, prepare your taste buds for a tantalizing journey and get ready to experience Indian cuisine like never before!

Key Takeaways

• The business venture will be led by Mr. Rahul Patel, an experienced entrepreneur in the food industry.
• The street food cart will offer a diverse range of convenient and affordable snack and meal options inspired by traditional Indian cuisine.
• The cart will be strategically located in high-traffic areas across major cities in the United States.
• The venture aims to meet the growing demand for authentic Indian street food while offering a unique dining experience.
• The business will leverage technology and innovation to ensure operational efficiency and customer engagement.

The Indian Street Food Cart business idea would be led by Mr. Rahul Patel, a highly experienced entrepreneur with a strong background in the food industry. Having previously successfully established and managed several successful food ventures, Mr. Patel possesses the necessary skills and expertise to drive the success of this new endeavor. He would assemble a team of skilled chefs and staff members who share his passion for delivering authentic Indian street food.

Owners and Personnel

The owners of the Indian Street Food Cart business would include Mr. Rahul Patel and any other partners or investors who join the venture. As the driving force behind the business, Mr. Patel would oversee the overall operations, strategic decision-making, and business development activities. The team of skilled chefs would be responsible for creating the delicious and authentic Indian street food menu, while the staff members would handle customer service, food preparation, and inventory management.

The business may also seek guidance from industry experts and consultants who specialize in the food industry. These advisors would provide valuable insights and recommendations to ensure the successful launch and growth of the Indian Street Food Cart. They would assist with market research, branding, marketing strategies, and financial planning, leveraging their expertise to help guide the business towards profitability and long-term sustainability.

Customers and Target Audience

The primary target audience for the Indian Street Food Cart would be individuals who appreciate and crave authentic Indian street food. The venture aims to attract a diverse range of customers, including students, professionals, and families. The convenience and affordability of the street food cart's offerings make it an attractive option for individuals seeking quick and delicious meals on the go. By strategically locating the cart in high-traffic areas such as college campuses, corporate parks, and farmers markets, the business aims to maximize exposure and capture the attention of its target audience.

Competition

The Indian street food industry in the United States has seen significant growth in recent years, with a number of established players already operating in the market. Some of the major competitors in this space include established food truck businesses, as well as brick-and-mortar Indian restaurants. However, the Indian Street Food Cart would differentiate itself by focusing on offering a diverse range of customizable and affordable options, inspired by traditional Indian cuisine. By prioritizing quality, authenticity, and accessibility, the business aims to stand out in a crowded and competitive market.

The hypothetical Indian Street Food Cart business aims to provide customers with a diverse range of convenient and affordable snack and meal options inspired by traditional Indian cuisine. Led by Mr. Rahul Patel, an experienced entrepreneur with a background in the food industry, the business would assemble a team of skilled chefs and passionate staff members.

What do you want to achieve?

The business aims to meet the growing demand for authentic Indian street food in the United States while offering a unique and enjoyable dining experience. By focusing on quality, authenticity, and accessibility, the venture seeks to satisfy the cravings of diverse customer segments, including students, professionals, and families.

What is your sustainable advantage?

The sustainable advantage of this business lies in its commitment to authentic Indian street food and its strategic location in high-traffic areas across major cities in the United States. By targeting college campuses, corporate parks, and farmers markets, the business maximizes exposure and attracts a wide range of customers.

What do you offer?

The business offers a wide range of customizable Indian street food dishes, including biryani bowls, chaat plates, pau bhaji sandwiches, and samosa wraps. These dishes are prepared by skilled chefs who are passionate about delivering authentic flavors to customers. Additionally, seasonal specials and catering services for events and parties are provided.

What do you produce?

The business produces delicious and authentic Indian street food dishes made from high-quality ingredients. Each dish is carefully crafted to capture the vibrant flavors and textures of traditional Indian cuisine. The team ensures that the dishes are customizable to cater to individual preferences and dietary restrictions.

The street food cart operates year-round, taking advantage of the high demand for convenient and affordable food options throughout the day. The business leverages technology and innovation to enhance operational efficiency and customer engagement. A user-friendly mobile app is utilized for online orders and payments, while social media platforms and local food blogs are integrated to promote the venture and engage with customers. Efficient inventory management systems and partnerships with local suppliers are established to maintain the highest quality ingredients.

With short- and long-term goals in place, the business aims to achieve significant sales within a specified timeframe. By the end of the second month, the objective is to sell $000,000 worth of products or services, demonstrating the potential for growth and profitability.

The Indian Street Food Cart business would strategically locate its street food carts in high-traffic areas across major cities in the United States, including New York City, Los Angeles, and Chicago. These cities offer diverse populations and a vibrant food culture, making them ideal locations to introduce authentic Indian street food.

The target audience for the business would be individuals who are seeking convenient and affordable food options that offer a unique and enjoyable dining experience. To maximize exposure and attract a wide range of customers, the street food carts would primarily target three key areas:

1. College Campuses

The Indian Street Food Cart would tap into the bustling college campuses in the selected cities. With a large population of students looking for quick and delicious meals between classes or as a late-night snack, the street food cart would provide a convenient option for them. By collaborating with university authorities and participating in campus events, the business can effectively reach this target audience.

2. Corporate Parks

The street food cart would also focus on corporate parks, catering to the needs of professionals who are seeking a break from their busy work schedules. Located in or near business districts, the carts would provide a convenient and affordable option for employees to grab a tasty lunch or snack. By establishing partnerships with nearby companies and promoting the business through corporate newsletters and events, the venture can gain visibility among this target audience.

3. Farmers Markets

Another key location for the street food cart would be farmers markets. These venues, known for their vibrant atmosphere and diverse customer base, provide an excellent opportunity to showcase the authentic Indian street food experience. By collaborating with market organizers and leveraging the local community's preference for fresh and unique food offerings, the business can reach a wide range of customers, including families and food enthusiasts.

In order to get from its current position to its desired location, the Indian Street Food Cart business would undertake market research to identify the most promising areas within the selected cities. It would then secure necessary permits and licenses to operate the street food carts in compliance with local regulations.

The business would also invest in market analysis to track consumer preferences, identify emerging trends, and determine the most suitable locations within college campuses, corporate parks, and farmers markets. By keeping a close eye on customer feedback and the competitive landscape, the business can continuously refine its offerings and tailor its marketing efforts to specific locations and target audiences.

Furthermore, the Indian Street Food Cart business would leverage technology and innovation to enhance its operations. This would include developing a user-friendly mobile app for online orders and payments, enabling customers to conveniently access the menu and place orders from anywhere. The business would also utilize social media platforms and local food blogs to promote the venture, engage with customers, and gather valuable insights to improve customer satisfaction.

Additionally, the business would establish partnerships with local suppliers to ensure a consistent supply of high-quality ingredients. This would involve implementing efficient inventory management systems to minimize waste and maintain a cost-effective supply chain. By nurturing these strategic partnerships, the business can secure reliable access to fresh and authentic ingredients, enhancing the overall dining experience for customers.

In conclusion, the Indian Street Food Cart business would strategically locate its street food carts in high-traffic areas across major cities in the United States, targeting college campuses, corporate parks, and farmers markets. By leveraging detailed market research, technology, and partnerships, the business aims to offer authentic Indian street food that meets the demands of a diverse customer base, providing a memorable dining experience for individuals seeking convenience, affordability, and quality in their food choices.

When it comes to the timeline for the Indian Street Food Cart business idea, several key milestones and objectives have been identified. These goals are integral to the success and growth of the venture, ensuring its viability in the competitive food industry.

Business Plan and Launch

The business plan for the Indian Street Food Cart will be thoroughly developed and finalized by the end of 2023. This comprehensive blueprint will encompass market research, financial projections, marketing strategies, and operational plans. By the start of 2024, all necessary permits and licenses will be obtained to ensure compliance with local regulations.

The official launch of the street food cart will take place in the spring of 2024. This timing is strategic, as it allows the business to capitalize on the growing demand for outdoor food options during this season. By targeting high-traffic areas such as college campuses, corporate parks, and farmers markets, the venture aims to attract a diverse customer base.

Short-term Objectives

Within the first year of operation, the Indian Street Food Cart aims to establish a strong brand presence and build a loyal customer base. By consistently delivering delicious and authentic Indian street food, the business aims to become synonymous with quality and convenience. Special attention will be given to customer feedback and preferences to refine the menu and enhance the overall dining experience.

Additionally, the venture will actively explore catering opportunities, aiming to cater to events and parties within the first year. This diversification of revenue streams will contribute to the long-term sustainability of the business.

Long-term Objectives

Over the next five years, the Indian Street Food Cart aims to expand its presence and operations. By year three, the business plans to have multiple carts operating in major cities across the United States. This expansion will require careful market analysis and the identification of suitable locations to maximize growth potential.

By year five, the goal is to establish a permanent brick-and-mortar location in a high-traffic area. This move allows for increased capacity, expanded menu options, and the ability to provide a more immersive dining experience for customers.

Retirement and Exit Strategy

Looking ahead, Mr. Rahul Patel envisions retiring from the business in approximately 20 years after the initial launch. This timeline allows for ample time to establish and grow the Indian Street Food Cart into a well-known and profitable venture.

When the time comes, Mr. Patel plans to either sell the business to a like-minded entrepreneur who shares his passion for authentic Indian cuisine, or explore the possibility of franchising the concept to expand its reach even further. Alternatively, if unforeseen circumstances arise, the option to close the business down will be considered. The specific year for retirement, selling, or closing the business will be determined closer to the time, taking into account market conditions and personal circumstances.

Continual Innovation and Growth

Throughout the journey of this business idea, timing and strategic decision-making play crucial roles. By staying up to date with industry trends and continually innovating, the Indian Street Food Cart aims to remain a leader in the market and meet the evolving demands of customers.

Regular evaluations of objectives and milestones will ensure that the business is on track and adapt to any unforeseen challenges that arise. With a focus on quality, authenticity, and accessibility, the venture aims to serve as a benchmark for Indian street food in the United States.

At our Indian Street Food Cart, our mission is to satisfy the growing demand for authentic Indian street food in the United States while offering a unique and enjoyable dining experience. We believe that customers will be drawn to our business because we prioritize quality, authenticity, and accessibility.

Authenticity

We understand that customers crave the flavors and experience of traditional Indian street food. That's why our team of skilled chefs, led by Mr. Rahul Patel, an experienced entrepreneur with a strong background in the food industry, is committed to delivering dishes that stay true to their origins. From the spices we use to the cooking techniques, every element is carefully crafted to offer an authentic taste of India.

Convenience and Affordability

We recognize that customers are always on the lookout for convenient and affordable food options. Our street food cart provides a wide range of snack and meal options that are not only delicious but also customizable to cater to individual preferences. Whether it's a quick bite during a lunch break or a satisfying dinner after a long day, our menu has something to offer for everyone at an affordable price.

Unique Dining Experience

What sets us apart from our competitors is the unique dining experience we offer. Instead of the typical food truck atmosphere, we aim to recreate the vibrant and lively ambiance of Indian street food markets. Our street food cart, strategically located in high-traffic areas across major cities, creates an immersive experience where customers can indulge in the sights, sounds, and flavors of India.

We also cater to a diverse range of customer segments, including students, professionals, and families. Our customizable menu and seasonal specials provide a variety of options to suit different taste preferences and dietary restrictions. Whether someone is craving a hearty biryani bowl or a flavorful samosa wrap, they can count on us to deliver a satisfying and authentic meal.

Technology and Innovation

As part of our commitment to operational efficiency and customer engagement, we leverage technology and innovation. Our user-friendly mobile app allows customers to conveniently place orders and make payments online, minimizing wait times and ensuring a seamless experience. We also utilize social media platforms and local food blogs to promote our venture and engage with customers, keeping them informed about our latest offerings and events.

Furthermore, we prioritize the highest quality ingredients in our dishes. Through efficient inventory management systems and partnerships with local suppliers, we maintain the freshness and authenticity of our ingredients, ensuring that every dish we serve surpasses customer expectations.

In summary, our Indian Street Food Cart is in business to meet the demand for authentic and affordable Indian street food in the United States. With our commitment to authenticity, convenience, unique dining experiences, and innovation, we aim to stand out from our competitors and provide customers with a delightful taste of India. Our mission is to become the go-to choice for customers seeking a flavorful, convenient, and authentic Indian street food experience.

The Indian Street Food Cart business idea would be structured as a limited liability company (LLC), chosen for its flexibility and protection of personal assets. This structure would provide Mr. Rahul Patel and his team with limited liability for any business debts or legal issues that may arise. Additionally, an LLC does not require as much formal documentation or ongoing administrative requirements as a corporation, making it more suitable for a small-scale venture like a street food cart.

To navigate the registration procedures, rules, and liabilities associated with starting an LLC, Mr. Patel would engage with a business attorney. This advisor would provide guidance on the necessary paperwork, such as filing the articles of organization and obtaining the required licenses and permits. The attorney would also help establish clear operating agreements and ensure compliance with local health and safety regulations.

Management and Achieving Objectives

To achieve the company objectives, Mr. Rahul Patel would hire a team of skilled chefs and staff members who share his passion for delivering authentic Indian street food. These individuals would bring their expertise and creativity to the menu, ensuring a diverse range of snack and meal options that cater to different preferences.

In addition, Mr. Patel would personally manage the operations of the street food cart, overseeing day-to-day tasks such as inventory management, customer service, and financial management. This hands-on approach would allow for swift decision-making and quality control.

To maintain efficiency and customer satisfaction, technology would play a crucial role. The business would develop a user-friendly mobile app that enables online orders and payments, streamlining the purchasing process for customers. Social media platforms and local food blogs would be utilized to promote the venture and engage with customers, fostering a sense of community and building brand awareness.

In terms of procurement, the team would establish partnerships with local suppliers to ensure a steady supply of fresh and high-quality ingredients. Efficient inventory management systems would be implemented to minimize waste and maintain cost-effective operations.

Vision for the Future

The vision for the Indian Street Food Cart is to become a recognized and beloved brand in the United States, synonymous with authentic, convenient, and delicious Indian street food. The business aims to expand its presence beyond major cities and into suburban areas, tapping into new markets and reaching a broader customer base.

As the venture grows, Mr. Patel envisions setting up brick-and-mortar restaurants alongside the street food carts, providing customers with a sit-down dining experience while maintaining the same commitment to quality and authenticity. The expansion would also involve exploring additional revenue streams, such as packaged food products or catering services for larger events.

Ultimately, the goal is to establish the Indian Street Food Cart as a go-to destination for those seeking a taste of India's culinary delights, while continuously striving to exceed customer expectations and introducing new and innovative dishes inspired by the vibrant street food culture.

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Can I open a food truck business in Delhi?

Published on : 24/02/2017

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Among many other cost-effective ways to start a food business, food trucks are gaining popularity among younger generations, thanks to pop culture influence! Given the hype built around a food truck, it might be one of the best times to start a successful business with the least investment and variable costs. But before you start looking for a food truck, let’s review some factors to consider when launching a food truck business in Delhi.

1. The Initial Capital

A food truck can be up and running with the lowest investment in a restaurant business possible. If we calculate, we see that the minimum cost to start a food truck business can range from 10lakh to 15lakh INR on an average. If you want to go with a second-hand food truck, the price will drop down even further. This number, however, doesn’t include operational costs. Apart from that, the Indian Government is also offering various benefits to small scale businesses, aiding them to become ‘’AtmaNirbhar” (Self-dependent). You can apply for a small business loan, and it will be sanctioned based on your financial documents.

2. Target Customers and their Preferences

Who are your targeted customers? Are they office or college-goers, or will your business be open for people from all sections of the society? It is crucial to decide this, along with your menu offerings and price range.

If you are targeting office goers and students, then the Indian menu with a mix of healthy fast food will be best. If you are keeping it open for people across Delhi, then the inclusion of continental, Italian, Chinese, and snacks is a must. You can run a survey to know what people of Delhi will love to enjoy food truck services. 

3. Selection of the Right Truck 

Once you have decided the investment and customer segment, it’s time to take a call on the truck type. Depending on the volume of customers and locations you want to serve, the right truck needs to be selected. To run a food truck with ease and finesse, you need a vehicle that is a minimum of 18-feet long. Leading brands for trucks are Tata, Ashok Leyland, and Mahindra & Mahindra that offer such vehicles to be customized and used for a food truck business. However, if you want to minimize your investment further, going for a second-hand truck is also a viable option. Just paint it new, and the food truck will be ready. Do check vehicle documents (registration, fitness certificate, road tax receipt, and insurance paper) before you buy.  

4. Regulations and Licensing

As of now, there are no well-drafted laws regarding food trucks in India. Less documentation is an added advantage for this business. There are some standard sets of papers, which you need to arrange for getting a license for your food truck business in Delhi. Having a license will allow you to legally carry the food truck business in the city. Important documents include:

• Fire Safety Certificate
• NOC from RTO
• Shop and Establishment License
• NOC from Municipal Corporation
• Kitchen Insurance
• FSSAI Mobile Vendor’s License

5. Kitchen Equipment & Raw Materials 

On average, the kitchen equipment cost can range from Rs 2.50 to 3 lakhs. It includes a microwave, freezer, juicer mixer, refrigerators, steamer, griller, working tables, exhaust equipment, one burner, and a generator. It is always better to go with new equipment to avoid surprise breakdowns and the 1-year warranty on them is an added benefit. Other raw materials to keep in mind are serving plates, cooking appliances, cutlery, safety equipment, cash register, cleaning products, and of course, raw materials to make the food. 

6. Digital Menu

With digital menus and online ordering systems in place, you can optimize your costs, easily announce weekly or daily specials and provide a personalized experience to your customers. Inresto offers a customizable digital menu solution as well as your own online ordering platform that will enable your business to scale with minimal risks.

7. Recruitment of Staff for Food Truck

One person can’t effectively run a food truck business. So, hiring staff to cook upon order and serve customer needs is a must. You can also add a delivery model by hiring a delivery person to increase sales. With inresto’s delivery solution, you won’t have to tie up with third-party logistics like Zomato and FoodPanda. Instead, you can run your operations more independently and promise a better customer experience.  

8. Installation of POS Software

A POS software can help you stay updated with detailed information about the inventory and sales. Starting from acceptance of the order to acceptance of payment, inresto’s POS software can manage it all with a striking amount of transparency. It also supports online payment using a debit or credit card, Paytm, PhonePe, Gpay or other UPI apps,  enabling no-touch transaction, which is safe, secured, and fast. 

9. Marketing and Promotion

Marketing and promotion of any business is a must, and the food truck business is no different. With digital marketing being at the forefront, you can run impactful ads, target specific areas in Delhi where you plan to park for the day and get higher ROI due to the lower cost of promotions! With a proper digital marketing strategy in place, your food truck business can start to soar in no time!

Here are some tips to make your food truck business’ marketing effective:

1.Consistently keep updating your customer-base about changes in menu, location, packaging, service, or even terms and conditions!

2. Ask customers to post a picture and tag you on platforms like Instagram, Twitter, and Facebook.

3. Post happy customer reviews to get higher credibility and goodwill.

4. Run discount coupon campaigns or freebie campaigns to attract more customers.

5. Lastly, keep posting mouth-watering clicks of your menu to attract foodie attention!

With all these factors in mind, your food truck business in Delhi should flourish easily. We hope these points have allowed you to get a better idea of what to expect from a food truck business and the amount of work it will take to make it a success.

Click here to know more about effective social media strategies for your restaurant business.

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Food Cart Business Plan [Sample Template]

By: Author Tony Martins Ajaero

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Are you about starting a food cart business ? If YES, here is a complete sample food cart business plan template & feasibility report you can use for FREE .

Starting a food cart might be one of the nicest moves to make. This is hinged on the fact that there are a whole lot of people who are into the consumption of food. In fact it is very essential to human health. Look around you and you will find that there are an avalanche of restaurants that are saddled with catering to the food needs of people.

However, the food cart business is also gaining ore grounds as more and more people are making money from this trade. One thing is however sure, and that is that if you are able to draft a great business plan, you can be sure to work and run with it whilst building your business. Here below is a sample plan to work with;

A Sample Food Cart Business Plan Template

1. industry overview.

The Food Trucks industry has skilled people and van be said to have witnesses a remarkable rise over the past five years, as consumers have increasingly favored unique, gourmet cuisine at budget-conscious prices.

Despite the efforts which the entrepreneurs in this field put into the trade, there is still a high competition and an unfavorable regulatory conditions in some cities in the united states of America that have limited the growth of industry vendors.

Nonetheless, the industry has overtaken the broader food-service sector over the period in terms of revenue growth. Research has shown that soon in 2023, favorable consumer trends will continue to support moderate revenue growth. However, the industry will need to work with community governments to resolve the numerous legal challenges to food cart operations.

The Food Carts industry is in the increasing phase of its life cycle. Nonetheless, growth has increased slightly over the past few years and revenue is still growing at a much faster rate than the larger food-service sector. In the past food carts have progressed better than their food-service counterparts, primarily due to the budget-friendly features of their products and the expanding style of consumers seeking new food concepts.

Besides, the industry continues to progress and new creations are still entering the industry with new concepts. Figures have it that by 2022, industry value added (IVA), which has its measure an industry’s contribution to GDP, is predictable and is likely to grow at an average annual rate of 6.4%.

2. Executive Summary

Buena Foods ® is a leading and standard food cart Company that will be based in Boston – Massachusetts, USA that covers a wide range of clients both individual and corporate clients.

We have been able to lease a standard corner piece facility that is centrally located in the heart of Boston and few minutes drive to Harvard University Community. We have put plans in place to also sell our franchise and offer consultancy services in line with our area of business.

Buena Foods® is established by the Massachusetts awarding winning food nutritionist and caterer – Andrew Hago – Hugo who has B.Sc. in Food Science Technology and a Master’s Degree in Business Administration (MBA) from Harvard Business School.

He also has a robust experience in the food business having worked both in the public sector and the private sector prior to starting his own business.

We are in the food cart Industry to favorably compete with other leading and brands in the industry. Our corporate business goal is to be among the top 10 food cart chain brand in the United States of America.

As a company, we are willing to go the extra mile to invest in some of the finest professionals we can find and also we have set plans in place to acquire the best of equipment when it comes to setting up a standard and first class food cart business.

When it comes to hygiene and proper packaging, we have put plans, process and structures in place that will ensure that we are always at the top of game when it comes to that. We have been able to secure permits from all relevant departments in Massachusetts.

Beyond every reasonable doubt, the demand for goo food isn’t going to plummet any time soon, which is why we have put plans in place to continue to explore all available market around the cities where we are going to be located and ensure that we create a wide range of distribution channels via franchising. With that, we know that we will be able to maximize profits in our business.

Our strongest selling point at Buena Foods ® is the unique taste of the different types of delicacies that we will make and sell. There is hardly any customer that will taste any of our meals who would not want to come back and make more purchase or order more– we take great delight in welcoming repeat customers over and over again.

Buena Foods ® will at all times demonstrate her commitment to sustainability, both individually and as a firm, by actively participating in our communities and integrating sustainable business practices wherever possible. We will ensure that we hold ourselves accountable to the highest standards by meeting our customers need precisely and completely whenever they patronize our products.

We will cultivate a working environment that provides a human, sustainable approach to earning a living, and living in our world, for our partners, employees and for our customers.

Our plan is to position Buena Foods ® to become the leading brand in mobile food industry in the whole of Massachusetts, and also to be amongst the top 10 food cart brand in the United States of America within the first 10 years of starting our business.

This might look too tall a dream but we are optimistic that this will surely come to pass because we have done our research and feasibility studies and we are enthusiastic and confident that Boston – Massachusetts is the right place to launch this type of business before spreading to other cities all across The United States of America.

3. Our Products and Services

At Buena Foods ® we make a wide range of pizzas in terms of sizes and flavors et al; we prepare and serve our meals and other related items. We will also adopt full-service restaurants and quick-service style. As part our strategy to create multiple sources of income in line with our core business concept, we will run a consultancy service and trainings.

Our intention of starting Buena Foods ® is to make profits from the industry and we will do all that is permitted by the law in the US to achieve our aim and ambition. Here are some of our products and services;

• sell lunch (assorted meals)
• sell snacks
• sell assorted drinks (Soft Drinks, Wines, smoothie, and punch, Fruit Juice, amongst others)
• Sell franchise
• Training and consultancy services on mobile truck food business

4. Our Mission and Vision Statement

• To become the leading brand in mobile food cart business in Boston and the whole of United States of America.
• We are in the mobile food truck industry with the aim of constructing a brand that can readily meet the needs of our valued clients in places where they can hardly access standard cafeterias.
• And also to offer entrepreneurs the opportunity and training needed to successfully lunch their own mobile food truck business in other cities in the US.

Our Business Structure

Most people who go into the mobile foods business usually choose the business over the conventional restaurant business; this is because it is perhaps less expensive to manage especially when it comes to taking care of overhead and operational cost.

On the average, mobile food companies usually have 4 or 5 employees under their payroll. Because of the type of mobile food business brand that we intend building, we have been able to make provision for the following employees;

• Chief Operating Officer (Owner)
• Chef / Caterer
• Assistant Caterer

Office Administrator

5. Job Roles and Responsibilities

Chief Operating Officer (owner)

• Responsible for providing direction for the business
• Creates, communicates, and implements the organization’s vision, mission, and overall direction – i.e. leading the development and implementation of the overall organization’s strategy.
• Responsible for the day to day running of the business
• Responsible for fixing prices
• Responsible for recruitment
• Responsible for payment of salaries
• Responsible for signing checks and documents on behalf of the company
• Evaluates the success of the organization

Chef / Caterer /Cooks

• Responsible for preparing delicacies
• Makes lists and budget for kitchen supplies
• Oversees the entire kitchen staff
• Responsible for training new cooks
• Makes sure that the meals being whipped up tastes really good
• Kitchen Assistant / Utility Staff

Assistant the chef/ cook in the kitchen

• Ensures that all the needed cooking ingredients are in supply
• Runs errand for the chef / cook and every member of the workforce
• Ensures that the kitchen area of the truck is clean and hygienic at all times
• Responsible for washing cooking pots, utensil and dishes when necessary
• Assists in packaging food and snacks
• Responsible for moving packed foods from the kitchen to the cubicle / point of sale
• Ensures that various types of drinks are present in the fridge per time (get them replaced as soon as they are sold)
• Any other duty as assigned by the line manager
• Interfaces with our highly esteem customers
• Collects orders and issues foods as demanded by customers after payment
• Keeps proper records of daily sales and then reconcile with the cashier
• Responsible for manning the fridge and every stuffs that are up for sale
• Any other duty as assigned by the Chief Operating Officer
• Receives payments on behalf of the company (POS, cash, mobile money et al)
• Issues receipt to customers
• Prepares financial report at the end of every working week
• Handles all financial transaction on behalf of the company
• Responsible for driving the cart to sales venues and back to base
• Ensures that the cart is in top shape at all times
• Ensures that maintenance schedules for the cart are strictly followed
• Responsible for renewing the vehicle license, insurance and any other documentation for the vehicle as at when due
• Any other duty as assigned by the food cart manager
• Responsible for managing the daily activities of the back end office
• Prepares payroll for the organization
• Prepare monthly financial report for the organization
• Interfaces with vendors and third party suppliers ( drink suppliers, raw food suppliers and maintenance team et al)
• Responds to enquiries on behalf of the company
• Handles phone calls for the company
• Manage the company’s e-mail and website
• Interfaces with our bankers (lodgment of cash, checks and bank drafts et al)
• Responsible for payment of tax, levies and utility bills

6. SWOT Analysis

As a team together with our paid business consultants, we have been able to look both inward and outward, as well as critically assess ourselves and business ideas to know if we are truly ready to launch our mobile food truck business in Boston.

No doubt, we have a lot of factors working in our favor but at the same time we have some factors that we must contend with if we intend becoming the number one brand when it comes to mobile food cart business in Boston and the whole of North America. Below is a summary of the SWOT analysis that was conducted on behalf of Buena Foods® Mobile Food Company;

Aside from the trainings that have been acquired, as well as the hands on experience attained over the years prior to starting Buena Foods ® Company, our strength lies in our financial capacity and determination to succeed in the business at all cost. We have been able to acquire a brand new mobile food preparation vehicle (MFPV).

It has the capacity to meet the needs of well over 500 customers per day. Our strength also lies in the fact that we have relationship with brand experts who are working almost for free for us. With that, will be able to build our brand to a level where we can start selling franchises and offer trainings and consultancy services on mobile food Cart business.

The fact that we are planning to roll out our mobile cart business alongside other similar business offerings like training, consultancy services and sale of franchise could distract us from concentrating and channeling our energy in one direction. We are quite aware of that and we are working towards blocking any area that will sap our energy and make us under performed in our core business area – sale of foods and drinks from a mobile cart.

• Opportunities:

The opportunities that we stand to leverage on are much. The fact that we are not tied down to a location is indeed a good opportunity for us to grow our business to the level we want to grow it to. For example; we can afford to trade foods, snacks and drinks in more than two locations within a day. It is all about knowing when to arrive and leave for another location.

There is hardly any business venture that doesn’t face its own threat. Regarding mobile food cart business, one of the threat that we may likely face is; vehicular traffic in key cities.

Traffic can delay one and as a result of that one may get to the location where one intend selling the foods and drinks late- this could be when the lunch break is over (basically for organized events). Yet another threat is; the government policies, which could also pose a great threat to the mobile food cart industry.

7. MARKET ANALYSIS

• Market Trends

In this dispensation more than ever before, people no longer have sufficient time to do all they would want to do within the available 24 hours. Hence, the rise of fast food restaurants all over the cities. As such, mobile food cart business is another business that is designed to fit into a dispensation like ours. Part of the marketing and sales strategies that we shall adopt include but not limited to the following;

Submit proposals to event management companies to become their official mobile food vendor. Submit proposals to management of public facility (sport centers, beach and schools, et al) to become their official mobile food vendor. Send proposals to schools and corporate organizations to become their official mobile food vendor. Sponsor relevant events, such as cooking competitions, and cultural events, et al.

8. Our Target Market

When it comes to mobile food cart business, there are no restrictions to the market you can explore, as long as you are operating within the law of the state where you are conducting your business. We do not intend to place any limit to the scope of our target market and these are the places / locations where we intend operating our mobile food cart business with the aim of maximizing sales;

• Construction sites
• Tourism locations
• University Campuses
• Carnival ground
• Stadiums and sport centers
• Community Outdoor Events
• Blue Collar work locations
• Farmers Markets
• Industrial Parks
• Movie Recording Location
• Farmers Market
• Military Bases
• Office Complexes
• Mechanic Villages
• Open air shows and programs

When it comes to foods, there is indeed a wide range of available customers. In essence, our target market can’t be restricted to just a group of people, but all those who eating out and of course those who would want to try it out. In view of that, we have conducted our market research and we have ideas of what our target market would be expecting from us. These are the groups of people we intend marketing our pizzas to;

• Corporate Executives
• Government Officials
• Business People
• Celebrities
• Military Men and Women
• Sports Men and Women
• Everyone who resides in our target locations.

Our Competitive Advantage

Loads of factors count towards our advantage as a mobile food cart business operator. The fact that we have the ability to determine where we want to sell our foods and drinks per time gives us the leverage to make as much sales as we can make in a day.

It has been observed that any organization that offers training and consultancy services is always amongst the leaders in their industry and we at Buena Foods Company are set to tow along this part because we want to become experts and amongst the leading mobile food truck company in the whole of the US.

We have put plans in place to facilitate continuous improvement on what we do, because we know that is one of the factors that will be give us competitive advantage in the market place. Another competitive advantage that we have as a company is the size and condition of or food truck.

We have been able to purchase a brand new retrofitted food cart with the entire required gadget. It is big enough to accommodate all that we would need for the business, we are going to spend less on maintenance and we can easily obtain approval from the appropriate authorities.

9. SALES AND MARKETING STRATEGY

• Sources of Income

Businesses that do pretty well are businesses that have more than one source where they generate revenue. It is risky to run a business where you can only generate income from just one source. The truth is that if anything goes wrong with the source of income, the business might likely collapse.

This is why we worked hard to provide you with a sample food truck marketing plan template to help you through the process. The big picture we have for Buena Foods ® Mobile Food Company is to generate income from the following sources;

• Sales of launch (meals)
• Sales of Snacks
• Offering training services
• Offering consultancy services in line with our business goal
• Sales of drinks
• Sales of our franchise

10. Sales Forecast

It is important to state that our sales forecast is based on the data gathered during our feasibility studies and also assumptions. This is for sales projections based on what we saw.

• 1000 lunches per day (on average), 12 months per year
• $20 per person on the average
• 1500 snacks per day, 12 months per year
• $5 per person on the average
• Sales of Drinks and Water et al:

On the average over 80% of people who purchase lunch (meal) and snacks would normally consume drinks as well.

• $1.5 for a bottle of coke

This equates to 2000 drinks in a day when you multiply 2000 by 1.5 we will make an estimate of $3000 daily from the sale of drinks alone

• Marketing Strategy and Sales Strategy

Before choosing a location to launch Buena Foods® and also the types and the types of foods we prepare, we conducted a thorough market survey and feasibility studies in order for us to be able to be able to penetrate the available market in the cities where we intend positioning our business.

We have detailed information and data that we were able to utilize to structure our business to attract the numbers of customers we want to attract per time and also for our products to favorable compete with other leading food cart brands in Boston – Massachusetts and the whole of the United States of America.

We hired experts who have good understanding of the industry to help us develop marketing strategies that will help us achieve our business goal of winning a larger percentage of the available market Boston – Massachusetts and throughout the United States of America where we intend selling our franchise.

In other to continue to be in business and grow, we must continue to sell our products to the available market which is why we will go all out to empower or sales and marketing team to deliver our corporate sales goals. In summary, Buena Foods ® will adopt the following sales and marketing approach to sell our pizzas and soft drinks;

• Introduce our food brand by sending introductory letters to residence, merchants and other stakeholders both in Boston – Massachusetts and in other cities in the United States of America
• Open our food cart business with a party and free meals so as to capture the attention of residence who are our first targets
• Engage in road show in targeted communities from time to time to sell our products
• Advertise our products in community based newspapers, local TV and radio stations
• List our business and products on yellow pages ads (local directories)
• Leverage on the internet to promote our mobile food brands
• Engage in direct marketing and sales
• Encourage the use of Word of mouth marketing (referrals)

11. Publicity and Advertising Strategy

Despite the fact that our food cart company is a standard one with a wide range of flavors and products that can favorably compete with other leading brands in the United States, we will still go ahead to intensify publicity for all our products and brand. We are going to explore all available means to promote our services ®

Buena Foods ® has a long term plan of opening outlets in various locations all around the United States of America and also to sell our franchise which is why we will purposefully build our brand to be well accepted in Boston – Massachusetts before venturing out to other cities in the United States of America.

As a matter of fact, our publicity and advertising strategy is not solely for selling our products but to also effectively communicate our brand. Here are the platforms we intend leveraging on to promote and advertise Buena Foods

• Place adverts on both print (community based newspapers and magazines) and electronic media platforms
• Sponsor relevant community programs
• Leverage on the internet and social media platforms like; Instagram, Facebook , twitter, et al to promote our brand
• Install our Bill Boards on strategic locations all around major cities in the United States of America
• Engage in road show from time to time in targeted communities
• Distribute our fliers and handbills in target areas
• Position our Flexi Banners at strategic positions in the location where we intend getting customers to start patronizing our products.
• Ensure that all our staff members wear our customized clothes, and all our official cars and distribution vans are customized and well branded.

12. Our Pricing Strategy

Generally food cart business sells meals, and snacks at a cheaper rate when compared to the conventional fixed – restaurant. We don’t have any plans to sell our foods, snacks and drinks beyond the prices that is obtainable in the industry.

That does not mean that we will fall below standard when it comes to the quality of our food. As a matter of fact, one of our strongest selling points will be the taste and perhaps the quantity of our foods when compared to our competitors.

From our market survey and feasibility studies, we are sure going to make reasonable profits even when we sell a little below the average price for package foods and snacks in the food cart industry, especially if the location we intend selling our foods and drinks is not far away from our base.

• Payment Options

At Biena Foods ®, our payment policy is all inclusive because we are quite aware that different people prefer different payment options as it suits them. Here are the payment options that will be available in every of our outlets;

• Payment by cash
• Payment via Point of Sale (POS) Machine
• Payment via online bank transfer (online payment portal)
• Payment via Mobile money

In view of the above, we have chosen banking platforms that will help us achieve our payment plans without any itches.

13. Startup Expenditure (Budget)

When it comes to starting a standard food cart business, one is expected to spend the bulk of the start – up capital on equipping for the business. Aside from that, you are not expected to spend much except for purchasing distribution vans, paying of your employees and utility bills.

This is the key areas where we will spend our start – up capital;

• The Total Fee for Registering the Business in Boston – Massachusetts – $750.
• Legal expenses for obtaining licenses and permits as well as the accounting services (software, P.O.S machines and other software) – $1,300.
• Marketing promotion expenses for the grand opening of Buena Food Cart Business Company®; in the amount of $3,500 and as well as flyer printing (2,000 flyers at $0.04 per copy) for the total amount of – $3,580.
• Cost for hiring Business Consultant – $2,500.
• Insurance (general liability, workers’ compensation and property casualty) coverage at a total premium – $2,400.
• Cost for payment of rent for 12 month at $1.76 per square feet in the total amount of $105,600.
• Cost for construction of a standard bakery – $100,000.
• Other start-up expenses including stationery ($500) and phone and utility deposits ($2,500).
• Operational cost for the first 3 months (salaries of employees, payments of bills et al) – $100,000
• The cost for Start-up inventory (raw materials and packaging materials et al) – $80,000
• Storage hardware (bins, rack, shelves, food case) – $3,720
• The cost for counter area equipment (counter top, sink, ice machine, etc.) – $9,500
• Cost for yogurt making equipment – $20,000
• Cost for store equipment (cash register, security, ventilation, signage) – $13,750
• Cost of purchase of distribution vans – $50,000
• The cost for the purchase of furniture and gadgets (Computers, Printers, Telephone, TVs, Sound System, tables and chairs et al) – $4,000.
• The cost of Launching a Website – $600
• The cost for our opening party – $10,000
• Miscellaneous – $10,000

We would need an estimate of $500,000 to successfully set up our Food Cart delivery company in Boston – Massachusetts. Please note that this amount includes the salaries of the entire staff member for the first month of operation.

Generating Funding / Startup Capital for Buena Food Cart Business®

Buena Food Cart® is a family business that is owned and financed by Mr. Andrew Hago – and Family. They do not intend to welcome any external business partner which is why he has decided to restrict the sourcing of the start – up capital to 3 major sources.

These are the areas we intend generating our start – up capital;

• Generate part of the start – up capital from personal savings and sell of stocks
• Source for soft loans from family members and friends
• Apply for loan from my Bank

N.B: We have been able to generate about $100,000 (Personal savings $80,000 and soft loan from family members $20,000) and we are at the final stages of obtaining a loan facility of $400,000 from our bank. All the papers and document have been signed and submitted, the loan has been approved and any moment from now our account will be credited with the amount.

14. Sustainability and Expansion Strategy

The future of a business lies in the numbers of loyal customers that they have the capacity and competence of the employees, their investment strategy and the business structure. If any of these factors is missing from a business (company), then it won’t be too long before the business close shop.

Buena Foods ® will ensure that all the factors listed above are reinforced on a regular basis, we will continue to improvise with our products, come up with pleasant and acceptable flavors and also we will engage in continuous capacity building of our workforce. As a matter of fact, profit-sharing arrangement will be made available to all our management staff and it will be based on their performance for a period of five years or more.

We will make sure that the right foundation, structures and processes are put in place to ensure that staff welfare are well taken of. Our company’s corporate culture is designed to drive our business to greater heights and training and re – training of our workforce is at the top burner. We have the plans of

Check List / Milestone

• Business Name Availability Check:>Completed
• Business Registration: Completed
• Opening of Corporate Bank Accounts: Completed
• Securing Point of Sales (POS) Machines: Completed
• Opening Mobile Money Accounts: Completed
• Opening Online Payment Platforms: Completed
• Application and Obtaining Tax Payer’s ID: In Progress
• Application for business license and permit: Completed
• Purchase of Insurance for the Business: Completed
• Leasing of facility and construction of standard Bakery: In Progress
• Conducting Feasibility Studies: Completed
• Generating capital from family members: Completed
• Applications for Loan from the bank: In Progress
• Writing of Business Plan: Completed
• Drafting of Employee’s Handbook: Completed
• Drafting of Contract Documents and other relevant Legal Documents: In Progress
• Design of The Company’s Logo: Completed
• Graphic Designs and Printing of Packaging Marketing / Promotional Materials: In Progress
• Recruitment of employees: In Progress
• Purchase of the Needed furniture, racks, shelves, computers, electronic appliances, office appliances and CCTV: In progress
• Creating Official Website for the Company: In Progress
• Creating Awareness for the business both online and around the community: In Progress
• Health and Safety and Fire Safety Arrangement (License): Secured
• Opening party / launching party planning: In Progress
• Establishing business relationship with vendors – wholesale suppliers / merchants: In Progress
• Purchase of delivery vans: Completed

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Food Truck Business Plan- Requirements, Chef, Cost, Profit

Hello Friends, today we’ll discuss about Food truck Business Plan . If you want to open such business then after reading this article you get all the information about the Food truck Business Plan . In this article you get the information about how to start this business, its total cost, profit, Requirements and all information about this business. If you are interested in this business then it is a good time to start.

What is Food Truck Business?

Food truck Business usually operate (cooking and selling) in very small areas. There is no doubt that the food truck business is growing at the rate of 9 percent every year. Apart from this, this business has only started recently in India, so there is less competition in the market at this time. Due to which you can run your food truck business easily.

Why start a food truck business?

• This business has started recently in India.
• So, there is Less competition in this business.
• Take small space to operate.
• Easily manageable.
• Less manpower required

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
• Choose the Right location for your Food Truck
• 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
• Other miscellaneous things required to keep your food truck business in India, on the mark

Also Read: How to apply for the Haldiram Franchise in India?

Right Location for your food truck:

• Choose a street that doesn’t have too many similar food vendors around
• Regular flow of traffic for inviting large footfalls.
• Establishments with young professionals and students in the surrounding area.

Choose The Right Food Truck Or Commercial Vehicle:

• Based on the given menu which is Italian and Continental
• Choose your vehicle of any company Tata, Mahindra, Ashok Leyland etc
• 2 nd hand Vehicle
• Proper fitness certificate.
• Registration
• Road tax receipt
• Vehicle age not less than 10 years

Also Read: How to setup an Oxygen Plant?

Kitchen Equipment And Raw Materials:

Microwave, juicer mixer, freezer, refrigerators, stoves , griller, steamer, working tables, one/two  burner, exhaust equipment, Cooking equipment, food raw materials(depends on your food truck menu)generator or big batteries with an inverter.

Licenses & Permits Food Truck Business in India:

• Fire Safety Certificate
• Shop and Establishment License
• NOC from RTO
• NOC from Municipal Corporation
• FSSAI Mobile Vendor’s License
• Kitchen Insurance

Food Truck Business Plan Related Video:

Investment for Food Truck Business Plan:

If you want to start Food Truck Business Plan then you have to invest approx 5 lakh to 10 lakh depends on the nature of food you’ll serve from your food truck. Bifurcate investment are given below:

• A Commercial vehicle cost : Rs 2 lakh – 10 lakh.
• Fabrication (bodybuilder shop)= 1 Lakh.
• The total cost of kitchen equipment, Chairs & tables = Rs 2 lakhs.
• Raw material for 2 week: Rs 30,000.(It may vary).
• License & Permits cost: Rs 50,000.
• Menu Displayed, Uniform Dress, Water & 2 Dustbin cost = Rs 10,000.

Manpower Required For Your Food Truck

• Delivery Boy (For Home delivery)

Also Read: How to apply for the Parle Product Distributorship?

Monthly Expenditure in Food Truck Business Plan:

POS Software For Your Food Truck:

It is always advisable to have good point of sale which can keep your data safe and give detailed information about your inventory and sales.

Staff Uniform For Your Food Truck Employees:

The staff uniform gives an overall brand feel to the restaurant business which will in return help you gain more trust among the customer. The combined cost of all the uniforms would not be more than Rs 6000-7000.

How To Do Marketing Of Your Food Truck Business?

Tie-ups with event planners, 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.

Marketing is a key of success of any business. So, good marketing and promotions will decide the success of your business. You can promote your food truck business plan, both online and offline.

• Build your own brand, website/ App.
• Tie up with online food delivery like swiggy, zomato etc.
• You can run online ads in social media like Instagram, Facebook, google etc.
• Get food reviewers and bloggers to your truck
• Distribute pamphlets, and use printed posters cut-outs & advertisements.
• Tie-ups with event planners, personal contacts with customers.
• Local Newspaper
• You can advertise you food truck business plan in a toto(e-rickshaw) for a day.

Cost of Food truck in India:

To build a decent food truck, you will have to spend at least 1 lakh, apart from the cost of buying a vehicle separately. On the other hand, if you buy a ready made food truck, you may have to incur an expenditure of Rs 3 lakh to Rs 10 lakh.

Where to buy food truck in India ?

If you want to buy Food truck online then you can visit https://dir.indiamart.com/  and www.customconcessionsusa.com  to buy your favorite Food truck. But, you can also design the food truck yourself, but for that you will have to buy each equipment separately. However, you can get these equipment both online and offline. And let me clear one thing that you can also buy these truck offline or design by yourself.

Also Read: Hero MotoCorp Franchise- Cost, Profit, Requirements, Apply

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.

Apart from the regular business which has a minimum 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.

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.

Points to keep in mind in Food Truck Business Plan:

• Your vehicle should be maintained properly.
• Quality and taste of your food must be good.
• Hire best chef for your food truck business according to your menu category and Train them in good manner.
• Business owners must be very mindful of kitchen hygiene, air pollution levels, and food waste management.
• Here is a small checklist of health and hygiene pointers:
• Make use of chimneys to control air pollution.
• Conduct a check on the food waste twice a day and keep the cooking area clean.
• Ensure that your staff maintains good sanitation.
• Keep a few dustbins near the food truck.
• Keep in mind. the management of food truck business must be great.
• Initially, don’t invest more amount in advertisement use low marketing skill.

If you need any help from our team then please fill the contact form our team will contact you soon. And if you like this post then please share this post.

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Anand Sharma

Hello, my name is Anand Sharma. With over 3 years of experience in content creation within the business niche, I have honed my skills in business analytics and management. Throughout my career, I have successfully supervised a team of content writers, ensuring the delivery of high-quality and engaging content. I am passionate about leveraging my expertise to provide valuable insights and contribute to the success of your business.

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Food Cart Business: Beginner’s Guide (Top 9 Ideas)

Franchising is “a method for expanding a business and distributing goods and services through a licensing relationship,” a definition provided by the International Franchise Association.

This licensing agreement involves the participation of both franchisor and franchisee. You should know the difference between these two in layman’s terms:

• Franchisor

He is the legal owner of the overall rights, including trademark, method, and products of the company. He grants the license to the franchisee.

• Franchisee

He is the one bound by the licensing agreement granted by the franchisor. The franchisee purchased the right to sell the franchisor’s products.

In this case, planning to start your food cart franchise through already established brands will make you the franchisee.

Advantages of Franchising

1. Established brand and customer base – When you franchise, the brand is already recognized and has proven its profitability. You won’t worry that much about incurring huge losses.

2. Higher chances of success

3. Faster return of investment

4. Growing trend

5. Minimal risk

6. Marketing support – Advertisements are often aired on televisions and radios. Some are even heavily promoted through billboards and other powerful outlets so attracting customers won’t be that burdensome.

Disadvantages of Franchising:

1. Royalty fees – Fees must be remitted to the franchisor for a percentage of your monthly sales; thus, your income is reduced.

2. Limited control and freedom

3. Dependence on franchisor success

4. Limited creativity and flexibility – If you ventured into a milk tea franchise, you can’t innovate the taste of the milk tea. You can’t decide on your own and replace the tapioca pearls with your own preferred version.

As you can notice, the advantages still outweigh the disadvantages. Actually, the franchise has been named as the “business with least tears and fears.”

This boosted your motivation, am I right?

I hope you keep that passion burning!

Food Cart Business Ideas

You already made progress in reading this blog. Probably, this guide already flicked a light on your mind!

So, upon conducting a little research on what Filipinos love today, here are some ideas for your own food cart business that could further spark your interest!

1. Milk tea

Among all the food products on this list, this one takes the crown. Filipinos ranked second highest milk tea drinkers in Southeast Asia. The average milk tea consumption in the Philippines is 5 cups per month!

As a milk tea addict, maybe you have that unique milk tea formula you’d like to explore! Turn those pearls into cash! If this doesn’t convince you, I don’t know what will.

Gilbert Jim, a tea-lover and owner of Bubbatealicious which started in 2008, wanted to advocate tea-drinking which wasn’t prominent in the country at that time. He continued advocating tea-drinking until his hard work only paid off in 2010.

As your own milk tea business reaps its success, expect the blockbuster lines, and the whopping blockbuster sales!

2. Fruit shakes

Filipinos, regardless of age, want something to quench their thirst in this microwave oven we live in.

Whether you built a cart in transport terminals or beside schools won’t matter; people will still be lining up for a refreshing mango shake or buko shake.

The perfect ulam + sinangag + itlog would always be the ultimate favorite combination. Tapa, tocino, hotdog and bangus are some of the classic favorites.

It’s not only ideal for breakfast but satisfies your stomach for any meal of the day.

A perfect example of a successful food cart business would be Ate Rica’s Bacsilog.

The craze started in DLSU, until it branched out its operations in other areas. They stepped up the typical bacon silog by featuring and boasting their most-loved cheese sauce!

4. Chicken wings

Who doesn’t love chicken wings? Chicken wings are a timeless favorite. People continue to indulge in experimenting sauces and new flavors that would be on par with other chicken wings restaurants.

5. Street food

Make those kwek-kwek, isaw, fish ball, siomai or dimsum your own version! You can innovate by producing a delicious coating or even by adding a twist to the usual orange kwek-kwek color.

Be remembered as a modern street food cart business that prides in cleanliness, affordability, and superior taste.

Top 9 Food Cart Franchise Opportunities (Ranked starting from the cheapest)

Before giving you the updated list that would hint your next business franchise venture, here are some terms you should be knowledgeable of:

Payback period – the length of time that would recover your initial investment.

For example, your initial investment for Siomai King amounted to P150,000. For a year, your monthly income amounted to P12, 500.

P12,500 x 12 months = P150,000.

Your investment was recovered in a year. The faster the payback period, the better. However, also consider inflation. The money you initially invested may not have the same value in the future.

For this list, the capital ranges from P50,000 to P250,000!

For your convenience, relevant information such as contact details is provided. Here are the franchise businesses leading the pack in terms of minimal investment:

1. Burger Matsing Franchise

• Minimum initial investment: PHP 50,000
• Package inclusions: Franchise fee, franchisee and crew training, online ordering system, operations and marketing support, etc. (Excluded: Store construction cost, equipment, and initial inventory)
• Contact information : [email protected] / 0945-3456957 / 0939-8775810 / 0943-8700283

Yes, for only P50,000, your goal of a food cart business can be at the palm of your hands. With proper management, this can be as easy as pie.

2. Star Frappe’ Food Cart Franchise

• Minimum initial investment:  PHP 99,000
• Package inclusions:  Trade name use, food cart, equipment, crew uniform, initial products worth PHP 3,000, franchisee and crew training, and after-sales support
• Contract term:  1 year (renewable without a fee)
• Average payback period:  3 to 4 months
• Minimum space requirement:  6.25 sqm
• Contact information:   [email protected]

Your investment is already recovered in a short period! You will then start earning profit in your 5 th month of operations. Be completely aware of your franchisor’s terms regarding royalty and franchise fees.

3. Boy Kanin Food Cart, Kiosk, Dine-in Counter, or In-line Store

• Initial investment: a. Kiosk: PHP 149,000 b. Dine-in counter: PHP 199,000 c. Small in-line store: PHP 249,000 d. Big in-line store: PHP 299,000 e. Food cart: PHP 299,000
• Package inclusions:  Franchise fee, trademark use, initial stocks, franchisee and crew training, marketing support, opening assistance, crew uniform, cart, equipment, etc. (Excluded from the kiosk, dine-in, and in-line store packages: Construction cost, equipment, and marketing materials)
• Contract term:  3 years
• Space requirement:  4 sqm (Kiosk/food cart) / 15 to 20 sqm (Dine-in) / 30 to 50 sqm (Small in-line) / 60 to 100 sqm (Big in-line)
• Contact information:  [email protected] / 352-8130 / 0917-3443472 / 0923-6831409

4. Hong Kong Style Fried Noodles & Dimsum Food Cart Franchise

• Initial investment:  PHP 150,000
• Package inclusions:  Food cart, equipment, utensils, small wares, initial product, training, pre-opening and opening assistance, crew uniform, and marketing materials
• Space requirement:  4 sqm
• Contact information:  343-0536 / 0917-5000772 / 0922-8307611

5. Siomai King Food Cart Franchise

• Initial investment:  PHP 168,888
• Package inclusions:  Security deposit worth PHP 40,000, trade name and logo use, food cart, equipment, utensils, food tasting products worth PHP 1,000, training, operations manual, opening assistance, marketing materials, etc.
• Contact information:  [email protected] / 889-4773 to 76 / 0918-8JCFRAN (523786)

As part of the new normal, Siomai King allows online franchising. Even when on lockdown, you can launch your food cart business.

You can be a franchisee in the comfort of your home. If you’re interested, click for full details .

6. Potato Corner

• Minimum initial investment:
• Food cart: PHP 200,000
• Kiosk: PHP 400,000
• In-line store: PHP 500,000
• Package inclusions: Franchise fee, food cart, franchisee and crew training, equipment, small wares, and initial supplies
• Average payback period: 1.5 years
• Contact information: [email protected] / 534-5845 / 534-5846

7. Mister Donut Food Cart, Take-out Booth, or Dine-in Shop

• Minimum initial investment: a. Food cart: PHP 200,000 b. Take-out booth: PHP 400,000 c. Dine-in shop: PHP 650,000
• Package inclusions:  Food cart, equipment, small wares, POS tablet, and crew uniform (Excluded: PHP 50,000 franchise fee)
• Contract term:  2 years (renewable for another two years at PHP 50,000)
• Average payback period:  8 months (cart) / One to two years (dine-in)
• Minimum space requirement:  1.35m x 2.16m (Cart) / 6 to 9 sqm (Take-out)
• Contact information:  [email protected] / 370-1236 / 0917-8896148

8. Waffle Time Food Cart Franchise

• Initial investment:  PHP 250,000
• Package inclusions:  Franchise fee, food cart, equipment, training, and crew uniform (Excluded: PHP 50,000 refundable security deposit)
• Contract term:  3 years (Renewable for another three years)
• Average payback period:  6 to 12 months
• Minimum space requirement:  4 sqm
• Contact information:  [email protected] / 584-1601 / 584-3704 / 0933-8513968

9. Happy Cup

• Minimum Initial Investment:
• Cart – PHP 250,000.00
• Outlet & Kiosk – PHP 300,000.00 to PHP 350,000.00
• Area Franchise – PHP 750,000.00
• Contact Information: [email protected] / 0917-12345678

Did none of these wake up the entrepreneur in you? To have a full list of food franchises you can venture into, particularly those below P1M of investment, read more

If your budget is specifically below P500,000, here is a compilation under these two categories, click here

Final Note to Aspiring Entrepreneurs

A food cart business can be a root to wonderful opportunities. That cart will be one of your first symbols of success. Hence, acquainting and engaging yourself in the food industry is indeed a wise decision.

However, kickstarting your business can be both intimidating and challenging.

Life isn’t about rainbows and butterflies. Get rid of your “what ifs” and start your business planning process! Be embodied with passion and zeal in the pursuit of your dreams.

There’s a quote that says, “If you have lemons, make a lemonade,” But do you ponder on and reflect on the true meaning of this?  Lemons represent the sourness, the adversities in life, but we shouldn’t settle with its sourness forever but radiate optimism and hope instead.

Let go of the fear that your business will fail. It will only be a failure the moment you didn’t try. Soon, you will reap your big success.

I would like to hear your food cart business journey soon!

Read these next:

• Pisonet Business: Everything You Need to Know!
• 25 Best Franchise Business Opportunities in the Philippines – by Grit PH
• How to Start A Successful Internet Cafe Business
• 14 Things You Need to Start A Sari Sari Store Business

Jerico Saquing

Jerico is the founder of Peso Hacks. He's also a freelance writer who specializes in topics related to finance, travel and games. In his spare time, he likes to watch anime, play mobile games and read books.

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