Food Truck Business Plan
Hello dear reader, we welcome you to our new article on food truck business plan in India. If you are interested and want to know more about this business idea, keep scrolling down. You are about to get rid of all your doubts related to this business.
You might have already know that, food truck business or restaurant on wheels is gaining popularity by the minute and in the long run it can prove out to be a profitable business for you.
In this article, we will be looking at the costs involved, licenses needed, benefits you can get out of this business, points you have to keep in mind along with food truck marketing, so without any further ado, let us get started!
Include all the Costs involved in the Food Truck Business Plan
It is to note that an average food truck can cost between INR 8-10 lakhs in India and if we talk about a fully equipped food truck, it can cost up to 20 lakhs or more.
If you want to start this business, you will be needing a truck. You can buy a new one or go for a second hand truck. A truck will cost you a at least INR 4 lakhs.
After that, you will have to invest in important kitchen equipment for your truck. The items can be a stove, utensils, cooking vessels or cutlery. You might want to put tables and chairs as well. The customers who like to eat in the open can use this sitting arrangement. All this material will cost you around INR 2 lakhs.
After that, you will need a stock of inventory or raw materials to prepare the chosen meals. This can costs about INR 20-30K.
Time for the POS to come into play. The POS is more than a piece of technology that takes care of billing and technology. It is connected with several key business functions including CRM, analytics and inventory. A good POS for 6 months will cost you around INR 25-30K.
Now hire a staff according to your requirements. In India, the costs of hiring people is not that much and it can definitely work well for your business. The costs could range between 13-15K per month per person.
Just like any other business, sales will only knock your door if you are promoting and advertising your business in a proper way. This point will include both the online and the offline promotions that could turn out to be very beneficial for you in the long run. For marketing purposes at least save 20K for every month.
Include all the licenses needed by you in your Food Truck Business Plan
A food truck also requires all types of valid licenses. In India, the government has already started taking action against the people who are working with an illegal license.
If you want to run your food truck business without any obstacle in the long run, you have to get all these licenses:
- FSSAI License: Any food business with a gross revenue of more than 12 lakh INR have to get this license. It will be a 14 digit number.
- NOC from the Chief Fire Officer: The food trucks deal with a lot of gas appliances, so having a NOC certificate from the Chief Fire Officer is mandatory.
- Permission letter from the local municipal body: When you have finally made up your mind to choose a definite location for your business, you will need to get a written document, which should be stamped by the local municipal body to start getting up.
- Vehicle license: You will be operating out of a commercial vehicle, so a license for the same must be issued by the RTO of commercial vehicles.
Know the Benefits of the Food Truck Business
These are some of the benefits you will have to keep in mind if you want to open your own food truck business in the future.
- Low Investment: The low investment you need for this business is a good reason for you to go for this particular business as it will lead to low risk in the future. The total cost will not be more than INR 10 lakhs depending on your needs.
- Few Resources: You do not require a lot of resources for this business. You can start your business easily with only 1-2 resources and it will cost you around 4-8K INR per person.
- Learn at your own Leisure: If you want to learn about the various activities involved in running a food truck business, this is a good opportunity for you. You can gauge processes of analyzing data, get a good grasp of the customer’s tastes and preferences. You can also do important operational activities, manage the marketing, promotions and so on.
- Build suitable Partnership: Besides your everyday operations, you can also consider building up a few partnerships and attend certain events. For instance, there are several food trucks out there which sells excellent Indian street food and caters to a number of tests and corporate events.
Build a Proper Marketing Strategy for your Food Truck Business
Proper promotions will ensure the success of your food truck business, so make sure to pay proper attention while creating a proper marketing strategy for your food truck business.
If you want to promote your business on the online platform, there are a number of things you can do, such as:
- Create a Website: You can build your own website and app. Build a brand, tell how you started your business from scratch loud and clear on your website.
- Use Images: You can also use attractive images and discounts to add more customers to your customer base.
- Tie Up: You can also tie up with the large Indian online food ordering aggregators like Zomato or Swiggy.
- Make use of Social Media Platforms: You can also build a strong Social Media presence. Restaurants and food trucks make use of Instagram and Facebook to build their brand.
- Establish your Brand Name: Ensure that your brand name is visible to the customers and easily accessible on social media channels.
- SEO: A good knowledge of Search Engine Optimization is definitely invaluable for you. You can shortlist keywords around your niche and build your content around it. Take special care of page load times, site meta-tagging, directory listing, so that you could be easily found on Google.
- Advertise: Another way of marketing your food truck business is to run advertisements on SEO to increase the number of online orders through which you can build your brand awareness. You must always set some money and target audiences. You can also include audience sets and run adds accordingly.
- Use POS: You can try punch in customer details using POS and customer data to push your food truck business forward. You can run these campaigns via SMS and Email.
So, this was our article on food truck business plan in India. If you liked our content, you can support us by commenting on our website and sharing it to the people who are also looking for a business idea.
Also, do not forget to check out our other articles ranging from handyman small business ideas to how to build a proper noodle business plan in India.