Still confused about how to start a food truck business and what is its scope? Know the secrets and scope of the food truck business. The trend of food truck business is growing very fast in India. We can easily move the food truck from one place to another but if we open a restaurant then we cannot move it to another place, to do this we have to open a branch of that restaurant but this will cost a lot. The food truck business is a good option to overcome all these problems. If you have an interest in cooking and are thinking of starting your business with low investment, then the food truck business will be perfect for you.
But, to do a food truck business, some things have to be kept in mind like market research and a business plan. If we don’t do all these well then our business may fail. In this article, we will give you a complete guide on how to start a food truck business from scratch. India’s quick-service restaurant market was Rs 171.9 billion in the financial year 2022 and it is estimated that India’s quick-service restaurant market can reach Rs 431 billion by 2027.
Steps to Start a Food Truck Business :
1) Purchase the Right Vehicle
To start a food truck business, first of all, a truck /Commercial vehicle will be required. Trucks come in different sizes. But the bigger the truck you purchase, the more it will cost. It costs at least Rs 7 to 8 lakh to purchase a new truck. However, if you are getting a better deal somewhere then you can also buy a second-hand truck. After purchasing the truck, it’s time to get customization or modification done in it because that will attract customers. If the truck is decorated with good lights at night, then more people’s attention will be attracted towards our food truck.
2) Check /Complete Documents of Truck
When we buy a second-hand truck then it is mandatory to check its fitness certificate, registration and insurance. Because if these documents are not complete then we cannot legally drive the truck on the road. After purchasing a new truck, get it insured and registered.
3) Choose the Right Location
Location plays an important role in the success of a food truck business. Because if we place our food truck where there is little to no movement of people, then it is very difficult to get sales from there. On the other hand, more sales can come from places where there is more movement of people like schools, colleges, malls etc.
4) Required Licenses
- FSSAI License:- If the annual turnover of any food business in India is Rs 12 lakh or more, then it is necessary to get a Food Safety and Standards Authority of India (FSSAI) license.
- GST Registration:- When your annual turnover exceeds Rs 40 lakh then you have to get GST registration done.
- NOC of Fire Certificate:- It is important to obtain a fire certificate because equipment like gas appliances, boilers, fryers etc. are used in food trucks, due to which there is a risk of fire being involved.
- No Objection Certificate:- It must be obtained from both the Local Municipal Corporation and the RTO.
5) Purchase Equipment
Equipment like a refrigerator, griller, steamer, microwave, utensils, table and chair will be required. The cost of purchasing all these will be around three to four lakh rupees. If you do not want to make so much investment, then you can also buy old equipment, but check them properly while purchasing old equipment because if the warranty of the electric items has expired and later they don’t work properly. Then it will cost you high to get them fixed. So, Focus on buying these equipment from a reliable seller or person.
6) Create Menu
While designing the menu, choose those products in which you have expertise. Distribute food items in different categories and keep their prices affordable. While deciding the price, you have to pay attention to some factors like surviving in the competitive market, quality, demand etc. While designing the menu, utmost care should be taken about the colour scheme because the colour scheme represents the business.
7) Brand Identity and Marketing
Brand identity includes factors like brand logo, online presence etc. Having a strong brand identity creates credibility among people towards the brand. If a business doesn’t do marketing then its brand identity will not be created marketing helps our business to reach people. When any business is not available online then people don’t get as much credibility towards the brand as it does with online presence because nowadays everyone is online so the business must present online. Provide information to people about the business’s speciality, menu and upcoming events through its website and social media profiles.
Types of Promotional Strategies :
- Advertising
- Personal Selling
- Sponsorship
- Social Media Promotion
- Discounts
8) Customer Feedback
The customer is the king of the market. If we don’t take feedback from customers from time to time, then our customer base may lose because if a customer finds any deficiency in a food product and we do not take feedback, then we will not be able to fulfil this deficiency. Taking customer feedback also helps in meeting their expectations and the feedback will also make them feel that we value their opinion.
