What It Takes To Start A Food Truck Business

Food truck business is a great opportunity for entrepreneurs whose passion is serving food. It is beneficial in many ways like there is no need of buying costly spaces for opening up a restaurant, all you need is a full-fleeced truck, licenses and your passion for catering food in the city. It is a job which requires creativity and innovation with lip-smacking dishes for attracting foodies.

The average cost of starting a food truck business in India is between Rs 10 lakh to Rs 20 lakh, depending on what type of vehicle you have and what you are selling.

In India there is no association or regulatory body assigned by the government for establishing a food truck business. Licensing for food trucks in India is highly unorganised and is the most time consuming and burdensome task.

In a chat with BW Businessworld, Sagar Singh, Owner, Amigo Food Trucks said, “The food truck business has a huge potential which will be unlocked only when government comes out with some regulations. This business is much unorganised and the owners of the business face a lot of challenges, due to lack of any regulation, even the municipal corporations and police of cities have no authority to formulate any rules or guidelines.”

Decide a menu

For starting a business truck, one should research about the taste of people; what they want to eat on the go. It is important to figure out what type of food trucks are already in the city. How many food trucks specialises in the same menu you are planning to sell? Is there room in the market for what you are selling? Will people want to eat what you are selling?

Global cuisines like Mexican, Lebanese, Thai, Italian and many others are gaining popularity among people.

Choosing the right vehicle

The food trucks are customised commercial vehicles which come in different sizes. The cost of vehicle depends on numerous factors. Entrepreneurs often opt for pre-owned vehicles. The cost of customising a truck lies between Rs 1 lakh to Rs 5 lakh depending on the type of vehicle.

Licensing

All food truck owners ask for simplified licensing through a single window approach. However there are certain licenses, required for starting a food truck business, which are similar to those for opening a restaurant.  

• Food License

For every food business, a license from FSSAI (Food Safety and Standards Authority of India) is required.  The standards have to be followed to ensure availability of safe and wholesome food for human consumption. Businesses which have turnover of over Rs 12 lakh per annum require this license.

In India there is no special permit available for food trucks.

• Fire Department NOC

The trucks have gas appliances like fryers, boilers and oven which might lead to mishap, a certificate from Chief Fire Officer is compulsory.

• Liquor License

If the vendor is selling alcoholic beverages from their trucks, a permit from state government is required.

• License from local Municipal Corporation

Permission from local Municipal Corporation is required for locations where vendors serve food to the people.

• Commercial Vehicle License

NOC of vehicle ownership and vehicle license issued by RTO of commercial vehicle to sell food from it.

Insurance

Get Insurance of your truck and business to account for risks and liabilities.

Marketing

The vehicle itself acts as a marketing tool as it roams around the city with your brand name. Food trucks require presence on social media for promotions and updating about the location and timings in the city.