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FSSAI

How Profitable Are Food Trucks?

Food trucks can be a great source of income and operate similarly to any other type of business, but with the added benefit of mobility. But just like any business, there are several costs associated with starting up. Keep reading to learn how profitable they are.

Genesis of  Food Trucks

Food trucks have been around for decades, but their origins can be traced back to 19th and 20th century America, when local vendors began converting motor vehicles into mini-shops for selling cured meats, cigarettes, utility items, and so on. 

In the 1950s, the American Army began using mobile canteens at their base camps to feed their soldiers. This quickly became a trend, and the food truck industry became a global phenomenon.

The food truck industry has recently become a global trend with a massive public following as small businesses emerge and erode large corporations’ monopolies. Since food trucks provide high-quality food minus the high prices of fine dining establishments, they are highly preferred. Moreover, people view food trucks as a source of authentic local food. Since food from such trucks is affordable, they frequently attract a large following of loyal followers.

The concept of food trucks is growing rapidly in metros and other big cities. Dosa Inc which started in 2013,  claims to be the largest food truck company in India offering South Indian cuisine. It also claims to be serving over 13,000 customers across Delhi-NCR every month. 

Things to Know Before You Start Your Food Truck Business 

There are many legal restrictions, guidelines and laws which must be pre-emptively adhered to, in order to launch a successful food truck business. 

  • To start up in this segment, you will require a Truck that has been modified to fulfill the purpose of a food truck. You can either choose to buy a new truck but the common practice is to buy a used vehicle. You can easily find a used food truck without burning a hole in your pocket, as such trucks and heavy vehicles go on sale often.
  • After buying a food truck, there are various things that must be obtained. These include vehicle fitness certificate, insurance, vehicle registration and road tax receipts. Once all the above have been obtained. You can now be assured that your vehicle of choice is fit to be used.
  • The next step, before jumping into the business involves procuring the following government certificates –
  • NOC from RTO (Allowance for operating as a food truck)
  • FSSAI Mobile Vendor Certificate
  • NOC from Local Municipal Corporation
  •  Fire Safety Certification
  •  Shops and Establishment Certificate
  •  Kitchen Insurance (Optional)

Once you gather all these documents, your food truck is eligible to operate as a legal business entity. These certificates are also important as they ensure to your customers that your food is safe to consume. Moreover, getting all the above-mentioned certificates and government documents will also help in increasing the credibility of your Food truck while also providing legal backing.

At this point you may be wondering, how profitable is a food truck? The short answer is, that it is very profitable, to illustrate

To start a good food truck, you must first purchase a  food truck, register it, and obtain government and Food License certificates. You will then need to purchase electronic appliances and retrofit your truck to function as a mobile kitchen. Taking all of these costs into account, you can expect an initial investment of around 8-10 Lakhs. But don’t be alarmed by that figure.

Food trucks are well-known for the large amount of money they can bring to their owners. A food truck can earn between ₹7,000 and ₹10,000 per day on average. Food trucks are also a common sight at events and college fests. Food truck owners typically prefer to set up shop at such events where there is a high volume of people. As they can easily earn ₹35,000-40,000 per day.

So, in an average month, a food truck can easily earn between ₹2-3 lakhs, and if you include events and college festivals, the revenue can be increased by another ₹2-3 lakhs. But the most important thing to remember is that the success of any food truck, like a restaurant, is solely dependent on the quality of service and, most importantly, the nature of the food, its taste, quality, quantity, and so on.

Moreover, food trucks also present a manageable mode of conducting business. Since owners purchase food items and raw materials on a daily basis, they can calculate profit and expenses on a daily basis. This makes accounting management for a food truck business quite simple.

What else? If you’ve had your fill of running your food truck business, you can always sell it to someone else. ‘ Food truck for sale’ and ‘Used food truck for sale’ are popular online search terms, demonstrating how interested people are in this market segment. This ensures that your downside is protected.

Conclusion

Yes, food trucks are a profitable business, but it requires a significant upfront investment as well as food that people will enjoy. If you are confident in your food and can afford the initial investment, by all means, you should start a food truck business by applying for the FSSAI Food LicenseTo get started on your FSSAI registration, get in touch with the experts at Vakilsearch today!

Frequently Asked Questions

Is the food truck business profitable in India?

Yes, the food truck business can be profitable in India. With lower initial investment costs compared to traditional restaurants, flexible mobility, and diverse cuisine options, food trucks have gained popularity, especially in urban areas.

How much does it cost to open a food truck in India?

The cost of opening a food truck in India can vary, but a basic setup may range from ₹5 to ₹10 lakhs. Factors influencing costs include the type of truck, kitchen equipment, licenses, and permits.

Is the food truck business legal in India?

Yes, running a food truck business is legal in India. However, it requires obtaining necessary licenses and adhering to health and safety regulations set by local authorities.

Can I park my food truck anywhere in India?

No, you cannot park your food truck anywhere. Specific locations and parking regulations vary by city and require compliance with local municipality guidelines.

What type of food truck is most profitable?

The profitability of a food truck depends on factors like location, menu, and marketing. Street food, unique cuisine, or thematic offerings often attract more customers, contributing to higher profitability.

Are food trucks successful in India?

Yes, food trucks have found success in India, especially in urban areas where people appreciate the convenience and diverse culinary experiences they offer.

What is the minimum investment for a food truck?

The minimum investment for a food truck in India typically ranges from ₹5 to ₹10 lakhs, but it can vary based on customization, equipment, and operational needs.

Which truck is best for a food truck?

The choice of the best truck for a food truck depends on individual preferences and requirements. Popular options include Tata Ace, Mahindra Bolero, and Eicher.

What is the monthly income of a food truck owner in India?

Monthly income for a food truck owner can vary widely based on factors like location, menu pricing, and daily footfall. Successful food truck owners can earn substantial profits.

Is GST required for a food truck?

Yes, GST (Goods and Services Tax) registration is mandatory for food truck businesses in India, as it applies to most goods and services.

Why are food trucks not popular in India?

Food trucks are gaining popularity in India, but challenges such as regulatory hurdles, limited designated parking spaces, and varying consumer preferences can impact their widespread adoption.

Can you sell beer from a food truck in India?

Selling alcohol, including beer, from a food truck is subject to specific licensing regulations and may not be feasible in all locations due to legal restrictions.

How do I get permission to open a shop for 24 hours?

Securing permission for a 24-hour food truck operation involves obtaining relevant licenses, adhering to zoning regulations, and seeking approval from local authorities.

Can food trucks drive around neighbourhoods?

While some food trucks operate by driving around neighbourhoods, it's essential to comply with local traffic and parking regulations. Secure necessary permits for mobile vending to avoid legal issues.

Where do most food trucks park?

Food trucks often park in high-traffic areas such as business districts, popular events, and near recreational spaces. Identifying busy locations with potential customers is key to a food truck's success.

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