A new trend that is buzzing in the F&B industry at the metro cities is the new mobile food business! And when it comes to Delhi being one of the ultimate food destinations of India, the food truck business is fast picking speed with passionate foodpreneurs and restaurateurs seeking new ways to expand their food business at relatively lower costs. No matter how new and exciting the food truck business appears to be, it also comes with certain advantages and challenges. So here are a few tips that can help you join the bandwagon!
1. Investment – Although food trucks function on relatively low investment and operating costs, the minimum cost for setting up a food truck can range from 10lakh to up to 15lakh rupees. Where a second hand retrofitted food truck can cost up to 8-12lakh, a newly furbished food preparation truck with a kitchen can cost up to 15-20lakh rupees. With additional costs for licensing, marketing, inventory and labor costs, a restaurateur may need to be flexible with his budgeting and investment plans.
2. Regulations and Licensing – In consideration of the food truck business, the local authorities of Delhi do not have clear laws and regulations pertaining to the business. However compared to NCR, the laws are stringent in Delhi. Thus some of the licenses and permits that are mandatory to set up a mobile food business are as follows:-
à Food Business Operating License from the FSSAI (Food Safety & Standards Authority of India) – Source: http://bit.ly/2l7kOF4
à Eating House License provided by the Licensing Police Commissioner of Delhi – Source: http://bit.ly/2m7bXr1
à Food license, driver’s license and seller’s permit – Source: http://bit.ly/2lnEE1y
à NOC from Fire Department.
à Shops & Establishment license from the Municipal Corporation – Source: http://bit.ly/2mbtsTQ
à Health License which is issued by the Municipal Corporation or the Health Department of the particular State. – Source: http://bit.ly/2m7j9DT
à and RTO permission for the branding of your vehicle.
- Designing the menu – A food truck always seems to paint a colorful picture in the minds of people. Thus to live by their expectations, foodpreneurs go out of their way in customizing their menu, yet keep it simple. One of the advantages that a food truck owner has is his flexibility in making new changes in the ingredients to create something new and in the menu, a privilege that a regular restaurant owner does not enjoy. Desserts and fast food form a major item of the fast-sellable menu, while fancy grubs such as Mexican tacos, churros, hot dogs and wraps are slowly becoming the new favorite amongst youngsters and corporates.
- Research and marketing – Just like any other business, the mobile food business also requires meticulous planning and research method. One of the key points that play an important role in making the food truck business a success is i) targeting the right locations in the city and ii) marketing of the business. Knowing the type of restaurants, competition and the type of consumer class in a location forms the basis of your business while making your brand visible to the common crowd with social media marketing and word of mouth will help to pull in more customers.
Thus food trucks are soon to become the next big thing for passionate entrepreneurs of Delhi and are definitely here to stay!