The food truck concept is still in its early stages in most Indian cities. While offering the luxury of changing locations, food trucks also boast lower operational expenses compared to traditional restaurants.
If you’re passionate about the food industry and want to start a small-scale business, a food truck might be the perfect fit. However, like any other venture, it comes with its own set of challenges.
Being aware of these challenges beforehand can significantly increase your chances of success.
Here are some of the major challenges faced by food truck businesses in India:
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Getting Permits and Licenses
Regulations for permits and licenses for operating a food truck business in India are not well-defined.
Each municipality or panchayat may have different requirements, so before you invest in a vehicle and equipment, make sure that it is possible to get all the necessary documents in your town.
If you have good contacts in your area or connections with the municipalities, then getting these permits may be easy for you, otherwise, it can be a time-consuming process.
It can take several weeks or even months to get all the necessary documents. Usually, the following documents are required to start a food truck business:
- NOC from Municipal Corporation
- NOC from Traffic Police
- FSSAI Mobile Vendor’s License
- Fire Safety Certificate
- Commercial Vehicle License from RTO
- Insurance for your food truck business (if required)
It can cost you anywhere between 50,000 to 60,000 rupees to obtain these permits or licenses. There are a lot of consultancies which can help you to get these documents.
Purchasing a Food Truck
While starting a food truck business may seem like a low-investment venture, it’s important to remember that there are still significant initial costs involved.
Although the operating costs of a food truck can be relatively low, a substantial upfront investment is required to get started.
If you’re new to the business, it’s a good idea to start with a used vehicle instead of a new one. You can always upgrade later once your business is established.
Attractive Design:
In today’s competitive food truck market, having an attractive and eye-catching truck is essential. Since your target customers are likely to be young people, the overall design of your truck becomes even more important.
It’s advisable to get your truck customized by a specialist in food truck modification rather than a local workshop.
There are many such workshops available, and you can find contact details for those in your region through the IndiaMART website.
Planning Before Purchase:
Before purchasing and customizing your vehicle, it’s crucial to finalize your food truck menu and decide on the equipment you’ll need. Since space is limited in a food truck, making changes after the initial modification is difficult and can make your truck look messy.