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Food Truck Business Plan

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• Starting a Food Truck Business in India: A Complete Guide

Published on : 22/03/2022

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The Indian food industry has witnessed many evolutionary changes, one of them being the introduction of food trucks. Even though food trucks have been prevalent since the last decade, it wasn’t until a couple of years back that the food truck business caught on.

Starting from burgers and hotdogs to delicious South Indian foods and oh our favourite Chinese cuisine, you will come across food trucks selling a variety of cuisines in the country. Several factors have contributed to the growth of this industry type, out of which financing is a primary attribute. Considering everything, the capital required to open and run a restaurant is colossal. However, a food truck can be opened with a total capital of about INR 9 to 10 lakhs, which is most certainly an affordable range.

However, owning a food truck business is undoubtedly a blossoming idea. That’s why many aren’t aware of all the prerequisites one has to meet to open and operate a truck restaurant successfully. However, like all dreams, your food truck business is also possible if you stick around and read how to proceed! On this account, we have discussed everything you need to know to open a food truck business.

1. Decide your Cuisine

Your first job to do is to decide the type of food you want to serve. Like other industries, the food industry is divided into several categories based on the food type and the cuisine. 

Without deciding your cuisine and menu first, proceeding further will set you on a path of failure. This decision determines the truck size, the prospective location for business setup, the types of equipment you need, and many other attributes. inresto’s restaurant management solutions are built to optimize your ideal cuisine and menu types and enable you to avoid wastage and manage your food inventory effectively. 

Here are some of the popular food cuisines that are perfect for a food truck business:

• American dishes like burgers, hotdogs, sandwiches, wraps, burritos, bagels, and others.
• Various fruits and vegetable juices, beverages, shakes, and smoothies.
• Authentic South Indian dishes like idli, sambar vada, dosa, uttapam, etc.

2. Understand the cost differentiation of starting a food truck

Every startup business needs capital. Usually, for a standard food truck, the total setup cost is around 8 to 11 lakhs. However, if you want a fully equipped food truck with advanced equipment and setup, the price can increase up to INR 16 to 20 lakhs.

Before we move further, let’s take a glimpse at the price differentiation so that you can understand how much to spend for which purpose.

• For types of equipment like cooking stations, refrigerator, microwave oven, furniture, will cost you up to INR 2 to 2.5 lakhs.
• Since you need to buy a truck, you need to spend around INR 3.5 to 5 lakhs based on the truck’s volume, features, and other attributes.
• You will need an inventory of raw materials for cooking which will cost you around INR 15 to 25 thousand every month based on the amount, the ingredient types, and sales. Click here to know more about inventory management.
• If you are working independently at the start of the business, you won’t have to worry about the staff cost. But, if you hire a staff, their salary will be about INR 15 to 20 thousand per month, per person. We definitely suggest that you hire at least one person on board so that there is effective management. While one is cooking, the other can take orders, serve, and collect payments.

3. Get the required food licenses

Without proper licenses issued by the government, you will not be able to register your business and make your dream come true. So, before you jump with excitement at the idea of owning a food truck, prepare for obtaining the licenses. Following are the legal documents you will need for conducting the food business:

• If your business gross turnover is more than INR 12 lakhs annually, you will have to get the FSSAI license.
• NOC is needed from the Chief Fire Officer since owning a food truck means fire hazard, which means that people’s lives are in danger, including yours.
• Allowance letter from the municipality body of the area where you will be setting up the business.
• Vehicle license to register your food truck business with the government.

4. Choose a proper location for the food truck business

Since it is a truck, you cannot set it like an old, traditional restaurant. You have to focus on the area and the road from where you will start the food business. For choosing the location, you need to consider the three most important attributes.

• You need to confirm with the municipality body about your truck’s parking since every food business needs a spacious ambiance to operate and serve meals smoothly.
• Another factor that will matter is visibility. Make sure to choose a location that is regularly visited by flocks of people. This will help you to earn more revenue because most people like to grab a small meal on their way rather than going to a restaurant.
• To beat your competition, you should look into ways to make your customer service and marketing unique and intuitive to build a loyal diner base.

5. Get the required finances for the truck business

If you cannot arrange all the money required for opening the food truck business, you can take help from different financing methods. For example, a loan will help you with the capital needed to start the truck and get everything in motion.

6. Look for brand marketing and promotion

Lastly, you need to market your brand, and for that, you need to rely on advertisements and social media. Many companies offer promotion and marketing services on the digital platform. You can integrate inresto’ s marketing solutions to simplify your marketing activities such as social media marketing, customized website and online delivery platform creation for your restaurant business, and much more. This will give you much-needed exposure to your business, and soon your customer base will grow.

Final verdict

Opening a food truck business might seem overwhelming at times. But, in reality, it is one of the easiest business models to set up. Follow these easy steps and build a successful food truck business for yourself.

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How To Start A Food Truck Business In India

Surabhi Guleria

• June 2, 2023
• 13 Min Read

Starting a food truck may look daunting at first, and it requires proper guidance to take the right first step. Here is our guide on how to start a food truck business in India to help you figure out the basics.

This article explains why launching a food truck business of your own, rather than owning a solitary restaurant, is a wiser option.

It is a complete walk-through of every stage involved, so let’s jump straight to it.

Benefits Of Running A Food Truck In India?

There are a lot of advantages in opening a food truck business in India, sometimes even more than an average business related to the food industry. Some of them are:

• Minimal risk, small investment : If you spend wisely, a food truck will cost you less than INR 10 lakhs making it a lucrative low investment Idea for anyone in India
• Limited resources needed : One of the major advantages of a food truck is its minimal reliance on materials. One could even begin with just a couple of things (costing you around Rs 4000-8000 per person).
• Can gain a lot of experience : This is an excellent place to begin if you want to quickly learn about the different activities associated with establishing a food business. You can review data analysis procedures, have a deeper understanding of client likes and inclinations, perform critical operational tasks, administer promotion and advertising, and so on.
• Catering at events : In addition to your regular services, you can try developing a couple of partnerships and serving at occasions such as corporate festivals. 

How To Start A Food Truck Business?

First and foremost, you must prepare a food truck business plan that will serve as a blueprint for your food truck’s potential development.

It’s reasonable to have concerns when launching a business, regardless of the size of it, hence why you should understand how to draft a business plan for your business.

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While having a food business in India may sound intimidating, the below steps will cover the basics of starting a Food Truck Business in India.

• Choosing the right vehicle 
• Investing in kitchen supplies and other raw materials
• Obtaining necessary licenses and permits 
• Hiring a competent workforce (if necessary)
• Identifying and installing a suitable POS software for your food truck
• Choosing a uniform for your employees
• Investing in marketing and advertising
• Calculating the start-up capital required 
• Miscellaneous

1. Choosing The Right Vehicle

The very first task would be to pick the appropriate truck or commercial automobile. You will have a commercial truck that is at least 18 feet in length, and a newer model could probably cost Rs 7-8 lakhs, depending on the suggested catalog, which is Italian and Continental.

However, if you want to minimize the expense of buying a vehicle, then you can start off with a second-hand truck, which would cost half as much as a brand new model. 

When purchasing an older commercial truck, however, make sure it has a valid fitness certificate, company registration papers , road tax receipt, and insurance coverage. 

It also should not be older than 5 years, since several state governments, local authorities land environmental organizations are contemplating banning 10-year-old commercial automobiles in multiple cities because of pollution and other environmental risks.

With an extra investment of around Rs 1 lakh, you can get your old second-hand truck modified and customized from various bodybuilder shops as per your requirements and to make it more fun.

So, minus the cost of cookware and other supplies, the overall cost of the finished vehicle (old) is Rs 5 lakhs.

This cost looks to be exorbitant when compared to the 450 sq ft QSR business, which rents for roughly Rs 40,000, but again the food truck expense would just be immaterial in the long term since there is little to no rent or any other type of charges to pay, depending on the location.

How To Choose The Right Location?

Always pick the street or neighborhood where there are not many identical food sellers. It should have a strong stream of traffic to bring a lot of people and should have institutions with a bunch of young students and professionals in the vicinity.

Truck parking must also be structured such that it is not bothersome for commuters while yet being noticeable.

Furthermore, it is preferable to purchase a modest commercial vehicle instead of a large heavy one because large trucks are not permitted in some places, notably Delhi, before 9:00 p.m.

Also Read: Some Small Business Ideas For Indians

2. Investing In Kitchen Supplies And Other Raw Materials

Microwave, juicer mixer, freezer, griller, steamer, working tables, stove, exhaust equipment, generator, or giant batteries along with an inverter are all included in the overall price of kitchen hardware, which is roughly Rs 3 lakhs.

It is preferable to get new equipment because much of it is electrical. You would be spared of the regular servicing price of the machinery because new items arrive with a one-year warranty.

Furthermore, if you pick your equipment wisely and evaluate which items may be purchased secondhand, you can save a good amount of money that you can spend on other important tasks.

Other than cookware, raw materials can be stored for a week at a price of nearly Rs 30,000.

Furthermore, it is recommended to store minimal raw material during the first few weeks in order to preserve the freshness of the inventory and to observe the sales trend before procuring more.

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3. obtaining necessary licenses and permits.

The stated set of papers necessary is not available anywhere precisely because there are no definite laws governing food trucks/restaurant business plans in India .

Nevertheless, you must obtain the below-mentioned permits for your food truck in order to operate lawfully as a restaurant:

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

The total expense of the document and licensing procedure might be around Rs 50,000. There are several consulting firms that can assist you with regard to licenses and other permits.

4. Hiring A Competent Workforce

In a food truck arrangement, a maximum of two chefs and one assistant are needed to maintain the full food truck’s activities.

Chefs might earn anywhere between Rs 13k and Rs 15k on average, while assistants can earn up to Rs 8000 on average.

You may engage two delivery people or collaborate with third-party transport and logistics that charge roughly Rs 40-50 per delivery if you wish to establish a delivery strategy for the vehicle.

Nevertheless, if you want to ensure a high standard of quality and leave a footprint in the foodservice industry, we recommend that you employ at least one delivery person who could also help you in procuring raw materials in the event of an emergency instead of relying on third-party logistics.

5. POS Software

Implementing reliable point of sale software that can preserve the safety of your data and provide accurate details regarding your inventory and sales is always a smart idea.

In today’s highly competitive environment, a solid POS could drastically affect your food business, like many establishments, including QSRs and other food enterprises, leverage consumer data to encourage repeat sales and obtain feedback.

An effective point of sale system might cost nearly Rs 24,000 per year or Rs 2000 per month.

6. Staff Uniform

A uniform lends an enterprise an overall brand feeling, that could enable you to earn higher levels of trust from your clientele.

A regular collar t-shirt will cost you at least roughly Rs 120, and because you only need five workers in this arrangement, two chefs jackets would set you back by approximately Rs 300, while the rest of the crew may get by with a t-shirt and a cap.

The overall price of all uniforms will be around Rs 6000 or Rs 7000.

Related: Other Business Ideas For People In Tamil Nadu

7. Marketing Of The Business

Food trucks, unlike QSRs, need fewer menus for circulation because their core operation is predicated on foot traffic rather than delivery.

To get the buzz up and going, the business owner can buy 15000 flyers at a price of nearly Rs 20000 and get a few billboards and posters put up in the adjacent target zone at a cost somewhere around Rs 10000.

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But nevertheless, in today’s information age, generating offline hype is no longer sufficient.

Maintaining a presence online is essential, as it will retain your customers and followers and keep your audience up to date on the whereabouts of a food truck every single day. It would allow you to develop a consistent inflow of consumers and develop your brand.

It can also be leveraged current followers to help distribute information about the food truck, such as by offering benefits or picking unique menu options. 

Besides that, keep records of local events and community functions and station the food truck near them.

Partnerships with event organizers, direct interactions with consumers, and giveaways such as t-shirts and flasks with the food truck logo may all help circulate the word about the mobile eatery.

We also recommend you list your website on various platforms like Swiggy , Zomato , AVCNET.ORG , etc which leads to more orders and honest customer reviews which help you in increasing your business’s quality and service.

8. Cost Of Starting A Food Truck

In India, the usual cost of setting up a food truck business is roughly ten lakhs. It varies significantly depending on the sort of automobile you choose and the kitchenware you own. The following is a cost breakdown for a food truck business in India:

9. Miscellaneous

With the exception of the materials described earlier, you will need two cell phones, a calculator, an attendance record, a daily book, and 2-3 large trash cans to maintain cleanliness and hygiene if you are thinking of launching a food truck business.

This type of business, unlike all the other food business modes, has its advantages and disadvantages, such as location, which is a challenge for those other food business types.

In a food truck business, the entrepreneur can choose the location depending on the market details and analysis, with no rent or lease to pay, no electricity charges, less investment needed, and minimal operating expenses.

On the other hand, this business is relatively risky due to the absence of a clear structure or operating rules, but if handled effectively and professionally, this format may be regarded as the ideal food format in respect of investment returns.

The original investment in a food truck is substantially greater than in a QSR, but the best part is that the total running cost is drastically lower in the long haul than in a QSR or fast food cafe.

Besides normal business, which requires at least Rs 8000-9000 sales figures on a daily basis, a food truck may also profit from other gatherings and catering. A simple event or catering assignment might bring in up to Rs 30,000 in a day.

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In India, the idea of a food truck business, or an eatery on wheels, is gathering steam among businessmen and customers.

The popularity of food trucks can be attributed to the fact that it is a less expensive option to establish a full restaurant.

Hopefully, this guide helped you in understanding how to plan a food truck business in India as well as an estimate of the investment required.

Frequently Asked Questions(FAQs)

Which licenses are required to start a food truck business in india.

These licenses are necessary to obtain before starting a food truck business in India:

– FSSAI License – Shop and establishment license – Approval from the municipality – Fire Saftey License – Vehicle License – GST Registration

How profitable is the food truck business in India?

Earnings per day might go as high as Rs 14,000 on a good day. The monthly income can be somewhere around Rs 4,20,000. So yeah, a food truck business is a highly profitable business for people in India.

Maintenance salaries and other expenses might drag the income down to Rs 3,00,000 per month.

Are food trucks legal in India?

Food trucks in India do not require a specific permit. Places where sellers provide meals to the public need authorization from the local municipal corporation. 

Is there a license required to sell homemade food in India?

Yes, you need to have a food license from the FSSAI to serve homemade food, but if you are operating on a small scale, you simply need to register.

Each FBO is needed to get an FSSAI Food License under the Food Safety and Security Act of 2006.

Why do some food trucks fail?

Food trucks fail for the exact reasons as restaurants do: an absence of strategy and financial support.

People have no understanding of how much effort is required and how little income is available.

They are prone to simply seeing the surface of a falsely attractive and lucrative lifestyle.

What is the cost to start a food truck?

The cost to start a food truck in India can vary depending on factors such as the type of truck, equipment, permits, and supplies, but generally ranges from 5-10 lakhs (INR).

जीएसटी r1 क्या है और इसे कैसे फाइल करें, जानें आसान तरीका

Trading Business Ideas in India: 8 Lucrative Options

Nice write-up. Learned so much about the food truck business.

Hello Bipasha,

I appreciate your warm words. Glad this article was beneficial for you.

Could you please recommend a few websites where I may buy food in bulk?

Hello Soumya,

Start by doing thorough local research. On the Internet, you can locate a wide variety of food options at websites like Food Service.com or Business.com, which provide directories of food and beverage companies.

I think this business is truly excellent. Can you please list a few pluses and minuses of the food truck business so that I may make a more informed decision?

Hello Neha,

Thank you for your kind words.

Here are some advantages of operating a food truck: There are many chances, you may design your own menu, and it’s less risky than starting a brick-and-mortar restaurant. The drawbacks include having to operate in a small area and following local zoning restrictions, having to pay for future repairs, and there being a lot of competition in this field. Do your homework and choose the options that are right for you.

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Food Trucks Just Don't Work the Way as Shown In Movies, says This Entrepreneur Basically a restaurant on the go, the concept of food trucks is growing fast in India. This is how you can start one

By Shipra Singh • Jan 30, 2020

You're reading Entrepreneur India, an international franchise of Entrepreneur Media.

Jyoti Ganapathy and Satya Sashikanth Koniki always wanted to start a restaurant serving south Indian cuisine. Due to permit issues and inability to find the desired location, the duo instead started a food truck just to start off and build a customer base. What started as a stop-gap arrangement is now a full-fledged business for the Delhi-based couple. "Once the truck and the business got moving, we realized that this is an untapped business opportunity in India," says Ganapathy, co-founder of Dosa Inc.

Started in 2013, Dosa Inc now serves over 13,000 customers across Delhi-NCR every month and claims to be the largest food truck company in India offering south Indian cuisine.

The concept of food trucks is growing fast in India, albeit in metro cities. A food truck is basically a restaurant on the go.

What is a Food Truck

Largely a Western idea, food trucks function in two formats.

The first type is the stand-alone eateries in the shape and size of trucks generally parked outside office buildings and malls. However, they are regular food hawkers parked in the same spot every day.

Another type is the ones that drive around the city and park in different areas on different days. They are a mobile eatery in true sense as they cook and serve while on move. Food trucks typically don't have a fixed location and serve in several parts of the city by reaching customers. Under this model, one can also set up a base kitchen for bulk cooking when the volume of work increases.

Why Start a Food Truck

Food truck is emerging to be a preferred food business model over restaurants for a variety of reasons.

Flexible location: A wrong location in restaurant business can break your business. In the case of a restaurant, location once fixed cannot be changed. However, a food truck gives you the freedom to choose and operate from multiple locations.

Lower investment: Setting up cost of a food truck is 30-35 per cent lower compared with a brick and mortar restaurant. You need lesser space, equipment, cutlery and furnishing. Even running costs of a food truck work out cheaper as you save substantially on staffing, electricity and rent/lease.

Room for experimenting: Lower costs make food trucks a better entry point for beginners as you have plenty of room to experiment and hone your product without worrying about financial risk.

Better outreach: Mobility factor gives food trucks an upper hand in customer outreach compared with a restaurant. "A stand-alone restaurant is dependent on the customer to find it, whereas a food truck can get itself out there to as many places and get customers to taste its food," says Ganapathy.

But, a word of caution here, food trucks are anything but what is shown in movies. "A lot of people start a food truck with a certain perception having seen the movie Chef or something on Eat St show. They imagine a big truck on the street, they imagine people flocking to it and eating the food. But that is just not the way a food truck works," says Ganapathy.

Running a food truck requires much more footwork and marketing to pull customers to try your food.

How to Start?

The foremost requirement of a food truck is the vehicle. The size of the vehicle mainly depends on the kind of cuisine you're looking to serve. For instance, a regular fast-food truck serving burgers, sandwiches and shakes may not require heavy infrastructure. So, a medium-size tempo traveler will serve the purpose. But if you want to open a pizza parlor, that'll require heavier fittings, such as an oven, a bigger vehicle like a traveler or a medium-sized truck will suffice.

Another food truck business model is to set up a base kitchen in the city where all the food is prepared and the truck is used to sell the food on the go. Dosa Inc works on this model. "In the case of south Indian cuisine, sambhar and chutneys have to be prepared in bulk and not separately with each serving. We had set up a dark kitchen quite early in our business because of the volume of food we had to prepare at once," Ganapathy explains.

Similarly, for an ice cream parlor, you need bigger machinery to prepare different flavors of ice-creams. So for such models, you can open a base kitchen for bulk cooking and set up a last-mile kitchen in the vehicle with basic fittings like a stove, fridge and a sink for heating and selling the food on the go.

Licenses and Permissions

Like any food business, you have to register with Food Safety and Standards Authority of India to start a food truck. You won't need a license at the beginning as it's required only when your annual revenue is more than INR 12 lakh.

Get a state or national permit for the vehicle depending on how many cities your truck will be moving in. For instance, Noida falls in Uttar Pradesh, whereas Gurgaon is in Haryana; so a national permit is mandatory for operating in Delhi-NCR.

You may also have to get a health trade license from the Municipal Corporation of Delhi if you have a base kitchen and fire no-objection certificate if the space of your kitchen is over 90 sq. mt.

Choosing Location

After licenses, the most important step is to choose the right locations for your truck and how to market it. Ganapathy says the target audience of food trucks is families and residential neighborhoods. "We worked out our model not in streets or commercial areas because that's not where the demand of our food was. It was in residential areas," she says. She recommends choosing gated colonies, societies, lanes around hostels as your primary locations.

For marketing, you can distribute pamphlets and run campaigns on social media. WhatsApp has become the new-age method of marketing, explains Ganapathy. "Lot of societies are on MyGate or SocietyConnect; so we market our visits through WhatsApp groups." Most importantly, the truck will market your business so make sure to design it nicely and park it in areas where it is properly visible.

Once you have located the areas you want to operate in, work out a monthly schedule with dates assigned to different locations. For instance, Dosa Inc has fixed different residential colonies they go to on different days in a week. This way, their customers also know when to expect them.

Investments and Costs

You will have to make an initial investment on the vehicle and fittings, while the other costs will be your operational expenses.

One-time Investment

Truck: Key expense in starting a food truck is a fully-equipped vehicle whose price will depend on its size. A smaller tempo kind of vehicle will cost INR 3-4 lakh whereas a bigger vehicle like traveler will cost upwards of INR 8 lakh. A used vehicle will obviously cost 50-60 per cent less compared with a new vehicle.

Fittings: Equipment fittings will cost INR 4-5 lakh that includes both base kitchen and truck fittings.

Payment infrastructure: You will need a Web-based point-of-sale (PoS) terminal for billing, inventory keeping, CRM, analytics, etc., which will be INR 16,000-20,000 per terminal. You may also have to buy a computer or laptop and a printer for PoS that can cost you up to INR 35,000.

Miscellaneous: Apart from these defined expenses, add another INR 50,000 that will be spent initially for marketing, license fees and other miscellaneous costs.

Recurring costs

Staffing : Bulk of your costs will go into staffing. One head chef and one assistant to handle operational tasks can put you down by INR 50,000-60,000 per month. Of course, if you are the chef you'll save on this cost to a great extent and will only be required to hire assistants.

Utilities: Smaller repeat expenses will include fuel of the vehicle, annual insurance renewal, electricity bill and groceries and these will not be more than 25 per cent of your revenue.

Parking rental: The RWAs or local municipality of the area where you park charge a nominal rent every time you visit that locality.

Base Kitchen Rent (optional): If you plan to set up a base kitchen, a medium size shop in an inexpensive location will cost you around INR 18,000-22,000 per month.

What You Earn

Like any food business, a food truck will also take 3-6 months to start getting sizeable customers. But you have to ensure that you start serving a minimum of 50 orders per day to build a sustainable business. A more effective way to achieve this would be to visit fixed residential areas on specific days to establish a base of repeated customers. You can also look at taking bulk orders for offices and parties.

To give you an estimate of what you can earn from a food truck business, once you have a sizeable customer base of 80-100 orders per day, you can easily book a profit of 35-40 per cent on your revenue after removing all the costs borne by you. While staffing will be 30-35 per cent of the revenue, groceries and other utilities will be another 30 per cent.

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How to Start a Food Truck Business in 2023? | Steps & Cost Explained!

A food truck business can be a cost-effective and flexible entry into the food industry, especially now with the growing demand for convenient dining and varied cuisines. From costs to strategies, kickstart your food truck business with this comprehensive guide. With the ability to adapt to changing customer preferences and target diverse locations, the food truck business presents an opportunity for entrepreneurs to tap into a dynamic market. This guide will discuss the essential steps of starting a food truck business and set you up for success in the competitive food industry. 

Steps Involved in Starting a Food Truck Business in 2023

Here are the steps involved in starting a food truck business in India:

Step 1: Conduct Market Research

Market research is the first step in planning for a food truck business. Beginning with the local food scene and target market, identify gaps in the market that your food business could fill. Consider factors such as location, cuisine, and pricing. Identify competitors and study what they are doing right and what they could do better. Understanding the market will help you build the foundation for a successful food truck business. 

Step 2: Choose Your Cuisine and Concept

Your food truck’s success largely depends on your menu and concept. Decide what type of cuisine you want to offer and create a menu that showcases your unique selling points. Consider factors like the popularity of the cuisine in your area, your culinary skills, and your passion for the food you plan to serve.

Remember that offering a small, focused menu can be more manageable and appealing to customers. With a focus on high-quality seafood and simple, crave-worthy items, The Lobster Truck in Los Angeles, California, serves as a great example of this. Their menu is centred around lobster dishes, including lobster rolls and lobster quesadillas.

Step 3: Create a Business Plan

It is no secret that a well-thought-out business plan is essential for guiding any business to success. A food truck business is no different, and your business plan should include the following:

• An executive summary.
• A description of your food truck concept.
• Market research findings.
• A detailed menu with pricing.
• Financial projections, including startup costs, operating expenses, and revenue forecasts.
• Marketing and sales strategies.
• SWOT analysis (Strengths, Weaknesses, Opportunities, Threats).

A solid business plan will serve as a roadmap and help you secure financing (in the form of loans or investments) if needed.

Step 4: Secure Financing

This brings us to the most critical part of starting a food truck business. You will require capital to purchase a truck, equipment, licences, and permits and to cover initial operating expenses. Some of the funding avenues you can explore are personal savings, bank loans, crowdfunding, or seeking investors. Be prepared with a compelling pitch that demonstrates your passion but also showcases your plan for the viability of your venture.

Step 5: Obtain Licences and Permits

Running a food truck requires various licences and permits, which can vary by location. It is recommended that you contact your local government or health department to understand the specific requirements in your area and ensure compliance. Common permits and licences include:

• Business licence:  Register your food truck as a legal entity, such as an LLC or sole proprietorship.
• Health department permit:  Ensure your truck meets sanitation and food safety standards.
• Food service licence:  This allows you to legally prepare and sell food.
• Parking permits:  Depending on your city’s regulations, you may need designated parking permits for your food truck.
• Vendor permits:  Some cities require separate permits for mobile vendors.

Step 6: Design and Brand Your Truck

Your food truck’s appearance and branding play a significant role in attracting customers. Create a visually appealing design and logo that reflect your concept and cuisine. Consider hiring a professional graphic designer to ensure a polished and memorable brand image.

For example, Seoul Taco in St. Louis, Missouri, started as a food truck and has expanded to multiple locations. They serve a fusion of Korean and Mexican flavors and it is their catchy branding, in addition to delicious food, that has helped them thrive.

Step 7: Equip Your Kitchen

The heart of your food truck is its kitchen. Invest in high-quality, durable equipment that allows you to efficiently prepare and serve your menu items. Essential kitchen equipment includes:

• Cooking appliances (grill, fryer, stovetop, etc.)
• Refrigeration units
• Prep tables
• Sinks and dishwashing facilities
• Storage space for ingredients and utensils

Step 8: Hire and Train Staff

If you can’t run the food truck on your own, hire a team that shares your passion and work ethic. Training your staff to prepare and serve food efficiently and maintain cleanliness is crucial to providing a consistent and quality customer experience.

Step 9: Create a Marketing Strategy

Building a customer base is essential for your food truck’s success. Develop a marketing strategy that includes:

• Building a website and maintaining an active social media presence.
• Utilizing food truck-specific apps and websites to reach potential customers.
• Promoting your truck at local events, festivals, and farmers’ markets.
• Offering loyalty programs or discounts to encourage repeat customers.
• Partnering with local businesses for cross-promotion.

Remember that word-of-mouth recommendations can be powerful in the food truck industry, so always strive to deliver exceptional food and service. A great example of a successful marketing strategy is the one adopted by The Grilled Cheese Truck, which specializes in creative grilled cheese sandwiches. Their presence at events and social media engagement have contributed to their success.

Step 10: Build a Strong Online Presence

Needless to say, having a strong online presence is the best way to gain popularity and build credibility with your target audience. Maintain an active presence on online social platforms, update your website regularly with your menu, schedule, and location, and engage with your customers through online channels. For inspiration, refer to Kogi BBQ, Los Angeles, California, which is often credited with starting the gourmet food truck trend. Kogi BBQ�s innovative menu offers a fusion of Korean and Mexican cuisine, but it is their active social media presence that has made them a staple in the Los Angeles food scene.

Cost of Starting a Food Truck Business in 2023

It is vital to conduct thorough research to create an accurate budget for the costs of starting and running a food truck business. This involves ‘shopping around’ to get quotations and estimates for your specific business idea and circumstances.

Given below is the table estimating the costs involved in starting a food truck business:

While the above offers a general estimate of costs to consider, please note that these cost estimates can vary significantly based on location, the condition of the truck, the menu and the scale of the operation.

FAQs on How to Start a Food Truck Business

Here are some commonly asked questions about starting a food truck business:

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

While the cost can vary significantly based on location, cuisine, and the food truck itself, you can expect an average investment of anywhere from $50,000 to $150,000. This budget should cover expenses like purchasing and/or customising the truck, equipment, permits, licences, initial ingredients, and marketing.

What permits and licences do I need to operate a food truck?

Common requirements include a business license, a health department permit, a food service license, and parking or vendor permits. Laws and regulations may vary based on location, so it is essential to check with your local government or health department to understand the specific requirements in your area.

What are some tips for marketing my food truck effectively?

Effective marketing is crucial for attracting customers to your food truck. Here are some tips:

• Maintain an active presence on social media sites, sharing high-quality photos of your food and updates on your location and schedule.
• Partner with local businesses for cross-promotion.
• Offer loyalty programs or discounts to encourage repeat customers.
• Attend local food truck rallies and events to increase visibility.
• Consider using mobile apps and websites that track the locations of food trucks and allow customers to find you easily.

Are food trucks legal in India?

Food trucks have become increasingly popular in India and anyone can legally start a food truck business. It is important to note that one must obtain an FSSAI license to operate a food truck.�

Like any business, starting a food truck business requires careful planning, hard work and dedication. However, given the popularity of food trucks in 2023, there is no time like the present to embark on this exciting adventure. Having a solid business plan, conducting thorough market research and following the steps outlined in this guide will ensure you are best positioned to set up a successful food truck business. Remember that success may not come overnight, but with persistence and passion, your food truck can become a thriving business.

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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

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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

• 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

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