Are you planning to enter the food business?
Food Industry has always excited the young blood with a number of opportunities due to unsatisfiable taste buds of masses. This industry is still on the rising curve of the hockey stick and has not achieved saturation. According to reports, it is estimated that the total contribution of the food and restaurant industry will reach to 5-6 lakh crore by 2020.
A sassy trend has been witnessed where the savvy entrepreneurs are opting to open a restaurant on wheels. It has overshadowed the fast food and café culture. Lately, Food trucks have been springing on every hook and corner of the country.
If you are considering starting one, but clueless from where to start! Then this one is for you.
# Build the Ground Level Foundation
Before you actually go out there with your food truck venture, you are required to construct a strong base to ensure success. Food-a-preneurs are required to conduct a market survey to get an insight of what it takes to be a part of the food industry.
The market research not only should be limited to the selection of a suitable area, rather should have a wide purview. Keep in line the competitive landscape before selecting the right cuisine, a draft menu, the group of target customers for your niche food, the average price per customer you could fetch and a central theme.
Once all the scribbling and brainstorming is over, you need to figure out some regular operating inflow of funds. You will have to figure out if you have enough savings or want to look out for a bank loan or angel investors to help infuse some much-needed fuel to your truck.
# Prepare Your Reports
To keep the expenses and overheads regulated you are required to do a cost analysis. The costs should be segregated into operational and overhead costs and proper reports should be prepared.
Operational cost should mostly include the investment in raw material, staff, and daily expenses. One- fourth of such expenses should be apportioned to the food prices in the menu. On the contrary, only one-tenth of all the fixtures and equipment should be apportioned to get your venture at a breakeven soon.
Such cost reports will be helpful in buying a budgeted truck and also in pitching the idea to the investors.
#Get A Legal Cushioning
Before you go out and launch your food truck, you are required to protect the same by taking certain approvals from the government. Just like a normal restaurant you are required to get the following licenses in India.
- Food license from FSSAI
- Health Trade license from municipal corporation
- Eating house license from Delhi Police Licensing Portal
- NOC from Fire department
- Liquor license from excise commissioner and department of tourism
- License to play music from Indian Performing Right Society
- Signage license from municipal corporation
- Registration under Shop and Establishment Act
- NOC from Pollution Board
- Insurance for public and product liability
- GST Number
Along with applying for the licenses, you are required to select a registered business entity suitable for your food truck. You can either register a private limited company or start with a partner under Limited liability partnership or incorporate an OPC.
Further to secure your claim, you can apply for getting your brand name trademarked.
# All Set for Launch
Once all the back end formalities have been compiled, you can step forward in launching your food truck. You can initially start with a small team and expand gradually as the business thrives.
Since your business in on the go, you can spread a word of your existence from social media, engage foodies with teasers or attractive offers.
Food truck business has its own pros and cons like other food business formats. But with diligent planning and launch, it can surely make you an ‘entrepreneur-on-wheels’.