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Can I open a food truck business in Delhi?

  • Published on : 24/02/2017

Among many other cost-effective ways to start a food business, food trucks are gaining popularity among younger generations, thanks to pop culture influence! Given the hype built around a food truck, it might be one of the best times to start a successful business with the least investment and variable costs. But before you start looking for a food truck, let’s review some factors to consider when launching a food truck business in Delhi.

1. The Initial Capital

A food truck can be up and running with the lowest investment in a restaurant business possible. If we calculate, we see that the minimum cost to start a food truck business can range from 10lakh to 15lakh INR on an average. If you want to go with a second-hand food truck, the price will drop down even further. This number, however, doesn’t include operational costs. Apart from that, the Indian Government is also offering various benefits to small scale businesses, aiding them to become ‘’AtmaNirbhar” (Self-dependent). You can apply for a small business loan, and it will be sanctioned based on your financial documents.

2. Target Customers and their Preferences

Who are your targeted customers? Are they office or college-goers, or will your business be open for people from all sections of the society? It is crucial to decide this, along with your menu offerings and price range.

If you are targeting office goers and students, then the Indian menu with a mix of healthy fast food will be best. If you are keeping it open for people across Delhi, then the inclusion of continental, Italian, Chinese, and snacks is a must. You can run a survey to know what people of Delhi will love to enjoy food truck services. 

3. Selection of the Right Truck 

Once you have decided the investment and customer segment, it’s time to take a call on the truck type. Depending on the volume of customers and locations you want to serve, the right truck needs to be selected. To run a food truck with ease and finesse, you need a vehicle that is a minimum of 18-feet long. Leading brands for trucks are Tata, Ashok Leyland, and Mahindra & Mahindra that offer such vehicles to be customized and used for a food truck business. However, if you want to minimize your investment further, going for a second-hand truck is also a viable option. Just paint it new, and the food truck will be ready. Do check vehicle documents (registration, fitness certificate, road tax receipt, and insurance paper) before you buy.  

4. Regulations and Licensing

As of now, there are no well-drafted laws regarding food trucks in India. Less documentation is an added advantage for this business. There are some standard sets of papers, which you need to arrange for getting a license for your food truck business in Delhi. Having a license will allow you to legally carry the food truck business in the city. Important documents include:

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

5. Kitchen Equipment & Raw Materials 

On average, the kitchen equipment cost can range from Rs 2.50 to 3 lakhs. It includes a microwave, freezer, juicer mixer, refrigerators, steamer, griller, working tables, exhaust equipment, one burner, and a generator. It is always better to go with new equipment to avoid surprise breakdowns and the 1-year warranty on them is an added benefit. Other raw materials to keep in mind are serving plates, cooking appliances, cutlery, safety equipment, cash register, cleaning products, and of course, raw materials to make the food. 

6. Digital Menu

With digital menus and online ordering systems in place, you can optimize your costs, easily announce weekly or daily specials and provide a personalized experience to your customers. Inresto offers a customizable digital menu solution as well as your own online ordering platform that will enable your business to scale with minimal risks.

7. Recruitment of Staff for Food Truck

One person can’t effectively run a food truck business. So, hiring staff to cook upon order and serve customer needs is a must. You can also add a delivery model by hiring a delivery person to increase sales. With inresto’s delivery solution, you won’t have to tie up with third-party logistics like Zomato and FoodPanda. Instead, you can run your operations more independently and promise a better customer experience.  

8. Installation of POS Software

A POS software can help you stay updated with detailed information about the inventory and sales. Starting from acceptance of the order to acceptance of payment, inresto’s POS software can manage it all with a striking amount of transparency. It also supports online payment using a debit or credit card, Paytm, PhonePe, Gpay or other UPI apps,  enabling no-touch transaction, which is safe, secured, and fast. 

9. Marketing and Promotion

Marketing and promotion of any business is a must, and the food truck business is no different. With digital marketing being at the forefront, you can run impactful ads, target specific areas in Delhi where you plan to park for the day and get higher ROI due to the lower cost of promotions! With a proper digital marketing strategy in place, your food truck business can start to soar in no time!

Here are some tips to make your food truck business’ marketing effective:

1.Consistently keep updating your customer-base about changes in menu, location, packaging, service, or even terms and conditions!

2. Ask customers to post a picture and tag you on platforms like Instagram, Twitter, and Facebook.

3. Post happy customer reviews to get higher credibility and goodwill.

4. Run discount coupon campaigns or freebie campaigns to attract more customers.

5. Lastly, keep posting mouth-watering clicks of your menu to attract foodie attention!

With all these factors in mind, your food truck business in Delhi should flourish easily. We hope these points have allowed you to get a better idea of what to expect from a food truck business and the amount of work it will take to make it a success.

Click here to know more about effective social media strategies for your restaurant business.

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