Food trucks are a trending business plan that came all the way to India from Western culture. They have also earned a lot of fame and acceptance among consumers and entrepreneurs. A food truck is often seen as the one serving traditional food in an area or locale, which is why many people rely on it to get authentic local food. The foods served on these trucks are also affordable and within an economic price range, which was one primary reason for getting massive attention from the local public.
Every year, many small businesses in the restaurant industry come up on wheels. At the same time, some of them manage to exist, and others get out of the business mainly due to the poor management and lack of expertise held by these entrepreneurs in business and the field. This means that a food truck is not an easy business to handle, as there are a lot of difficulties along with all the pros held by this business, despite being a small business and understood to be easy to handle.
Despite the immense potential to make a good and attractive income on a daily, monthly, and yearly basis, food trucks are like babies, which need ultimate care and attention on a daily basis. They are like running a daily errand, and inventory backup cannot be maintained for a long or short term, as the space provided for such storage would be very low.
Coming to the initial cost, like any business, including the restaurant industry, the food truck demands a good amount of investment for various reasons, ranging from buying a car to meeting specific legal requirements.
A food truck owner has to obtain certifications and registrations for starting their business, and some of these would include:
– Mobile Vendor Certificate from FSSAI
– NOC or No Objection Certificate issued by the local Municipal Corporation
– NOC issued by the RTO
– Certification issued by the Fire and Safety Department
– Certificate for Shops and Establishments
– Insurance for Kitchen (which is optional).
The owner, on an everyday basis, purchases old trucks and converts them into a food truck, which would help them save a good amount of money and also give them the complete freedom to renovate and customize a business premise according to their design and aspiration. Then, the entrepreneur will have to get the kitchen equipment, electronic appliances, and other essential items to make the kitchen a mobile kitchen and a restaurant. Keeping all this together, the investment would cost the entrepreneur from INR 8 lakhs to INR 10 lakhs in total.
However, the point of importance here is how much the food truck business can help its owner earn, such that he can maximize the return on investment in no time. This will be made possible not just by achieving a good turnover but also by making a decent profit. On an average day, a food truck can earn from INR 5000 to INR 10,000 when set in a busy area. At the same time, when this is set, insignificant events or college festivals or such other festivals or gatherings with a number of people present, with good management, the entity can earn the owner an average daily income ranging from INR 30,000 to INR 40,000.
The purchase of raw materials is on a daily basis, which helps them keep at bay the extra purchases and limits their purchase to only the required raw materials or ingredients. One other advantage of the food truck business is that it is mobile and can shift its location from one location to another on the basis of the occurrence of an event or a place where there is a mass gathering or a large number of people. And this would help them earn a good amount of turnover, and with the daily expenses, they can efficiently compute the profit earned on a daily basis. This will help them make the necessary adjustments and ensure maximum profit is earned on a daily basis. And all these points put together, we can say that the food truck business is the now and next sensation, which, if run with all due compliance and good management, holds the strength to earn a good amount of profit, making it a profitable business.
