Anything related to food is an instant hit. Food Truck Business is nowadays in rage. The capital required for this business is much less and also is hugely popular among customers because of the mobility of the truck and its availability.
The future of food trucks seems bright with their projected revenue growth at a rate of 3.7% in the next five years. It’s a way better business idea to start with small amount of money rather than Restaurants. With just an old truck and few reused equipment, one can start the business with just an amount less than 10 lakhs.
A typical street vendor in Mumbai, for instance, makes an average monthly profit of 40 to 50 thousand rupees almost.
So here if you plan to start a business with low investment and operation cost, we bring to you certain steps you need to follow:
1. Choosing The Right Truck
Yes, that’s the first thing you should count on. A new one would cost almost 9 to 10 lakhs of reputed companies. But for low investment, you can start with an old one and first make profits then think of a new one. Make sure proper fitness certificate, registration, road tax receipt, and insurance are made before buying. Also, neglect buying cars that are 10 yrs old as the Government might ban such vehicles due to pollution issues.
2. Choose The Right Location
In any business, location is most important. You don’t need many competitors at first to a start. So choose a location that has fewer food vendors or even if it has, it must offer different food platter than yours. A place should be selected that can attract maximum crowds like a park, office areas, fields or a busy traffic place. The way the truck must be placed so that it doesn’t cause traffic yet visible to the public.
3. Kitchen Equipments
The total cost of kitchen equipment comes to around Rs 3 lakhs which includes Microwave, juicer mixer, freezer, refrigerators, griller, steamer, working tables, one burner, exhaust equipment. The raw materials should be very wisely chosen as much is not required for first. First getting customers is important. Required raw materials must at least cost about Rs. 30,000.
4. Licenses and Permits Required
• Fire Safety Certificate
• Shop and Establishment License
• NOC from RTO
• NOC from Municipal Corporation
• FSSAI Mobile Vendor’s License
• Kitchen Insurance
All these might cost you about Rs. 40,000. It is most important to do all these before starting the business.
5. Manpower
You will need a huge manpower to build such a business. At least one chef and two assistants to work on other errands. A chef’s salary must be almost Rs 13k-15k while the helper’s salary can go up to a maximum of Rs 8000. If you want to set up a delivery model from the truck, you can hire two delivery boys or can tie-up with third party logistics companies.
5. Marketing
Marketing is important for any business. Make the truck look lucrative and create a good billboard to attract the customers. You can also make Pamphlets which will cost around Rs 20000 to distribute all around and make people aware of your Truck. With Social Media growing nowadays everyone tries to do marketing online too. Digital Marketing is nowadays a must. So create a page and make the words and menu viral. You can also give offers and discounts on food for attracting crowds.
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.
So what are you waiting for? Start this business at a low cost and thank us later!
