How to Start a Food Truck Business in India

How to Start a Food Truck Business in India

In a country like India, where different gastronomic demands meet bustling streets, getting into the food truck business may be an interesting and profitable venture. Food trucks are mobile eateries with kitchens inside. In contrast to regular eateries, they can be parked or set up anywhere. However, the business strategy for a food truck must be intelligently designed, including decisions on the vehicle, location, funding, and so on. In this article, we will discuss how to start a food truck business in India.

What is a food truck?

A food truck is similar to a mobile restaurant, delivering a variety of foods and beverages to consumers in different locations. These trucks come equipped with cooking appliances and kitchen facilities, allowing you to produce and serve food directly from the vehicle, no matter where it is parked or set up.

Food Truck Business Plan.

Entrepreneurs who want to launch a food truck business should perform extensive market research and analysis tailored to their target regions, consumer preferences, and competitive landscape. This allows them to make informed decisions and maximise the potential of the food truck industry.

A food truck business plan should incorporate the following considerations:

Market Research

Conducting market research is the first stage in beginning a business. If you want to start a food truck business, you need to undertake market research to uncover industry possibilities and risks. Determine the market size and key demographics such as age, income level, client preferences, and so on.

Decide on your target market, or the segment of the market that you will service with your products.

Concept and Cuisine

This is one of the most crucial aspects of a food truck business plan. Once you’ve determined your target market, you must create a unique concept to best meet the wants of the customers. For example, you may create a food truck that serves seasonal meals to consumers; this would ensure that you have customers throughout the year.

It also involves decisions about the cuisines you will provide, such as Indian, Chinese, and Mexican.

Selection of Vehicle

A variety of things influence the vehicle you choose for your food truck business. It is primarily determined by the range of foods offered. If you intend to serve multiple cuisines on your food truck, you should get a larger vehicle; otherwise, a medium-sized vehicle can be employed. The cost of such trucks is between Rs. 8 and 10 lakh.

However, if you want to save money, use an outdated truck. In that situation, you must pay repair costs and install the required equipment. It will cost approximately Rs. 4-5 lakhs. In any case, the truck’s built-up area should be sufficient for the cooking setup.

Appropriate location.

The location of the food truck can be critical to the success of your business. As a result, you should carefully choose the location, taking into account the local licenses required, the existence of competitors in the region (if any), consumer footfall, surroundings, and other factors.

Simply put, the food truck’s location should be somewhere that receives a high volume of traffic throughout the day.

Business Structure

There is no ‘one-size-fits-all’ business model. You must select the most appropriate option from a list of possibilities such as Sole Proprietorship, Partnership, Limited Liability Partnership (LLP), Company, etc. based on the scope of operations you want to conduct, the amount of power you are willing to share, and other factors.

For example, if you wish to run a modest food truck business without sharing power with others, you can do so as a sole proprietor. If you wish to collaborate with someone, you can form a partnership or start a business.


The success of your food truck business is primarily reliant on its branding. In addition to having a logo, you must create a brand identity in the minds of your customers. Your branding should be appealing to your intended audience, from a catchy and memorable truck name to a visually appealing design that complements your cuisine and style.

Building consumer loyalty and awareness through consistent branding across menus and social media will eventually fuel the growth of your food truck business.


Arranging cash is another critical element for any organisation. Consider the various forms of finance available to you, such as loans from banks and financial institutions, borrowing money from family or friends, and crowdsourcing, among others.

Furthermore, if your business idea or concept is exceptional, you can seek funding from venture capitalists or angel investors. Consider the expense of collecting these funds.

Purchase of Raw Materials and Equipment

To set up the kitchen inside the food truck, you’ll need a mixer, microwave, juicer, refrigerator, burner, griller, exhaust and other supplies. As a result, you must devise a strategy for acquiring them, including whether you will purchase new or used equipment. On average, purchasing all of these equipment costs roughly Rs. 2 lakhs.

Furthermore, you must determine the frequency with which raw materials will be purchased and the amount of raw materials that will be kept on hand at any one moment. It is advisable to base the frequency of raw material orders on their nature. For example, if you plan to provide fruit juices, you will need to purchase raw materials on a regular basis to ensure that your consumers receive fresh juices.

Obtaining Licence and Permits

There is no formal law governing the food truck industry in India. However, it is recommended to obtain the following licences and permits for the smooth operation of business:

FSSAI license shops and establishments. Required documents include a vehicle licence, a fire safety certificate, and a no-objection certificate from the municipality.


A food truck requires only 4-5 people to operate. One person is required to receive orders from customers and collect payments. Food preparation requires at least two people, and if you intend to provide consumers the option of home delivery, two delivery people must be hired.

In addition, you can have a uniform made for your employees with your company name and emblem on it. It helps to gain customer trust.


Maintaining records is usually a good idea for tracking sales and business growth. As a result, you must licence Point-of-Sale (POS) software, which allows you to produce bills and keep track of transactions. Many organisations in the market provide licences for POS software, which range in price from Rs. 3,000 to Rs. 40,000.


Creating a competitive price structure is another critical option in a business plan. To preserve profitability without losing quality, consider the cost of materials, preparation, and operations.

Furthermore, market study, particularly competitive analysis, aids in developing competitive pricing that appeals to the target market.

Marketing & Promotion

You can use a variety of tactics to market and promote your food truck business. Because the majority of food truck clients are young individuals, you should have a digital presence that focuses on social media marketing. To attract customers, host social media contests and provide food discounts.

Furthermore, you can distribute pamphlets throughout the surrounding neighbourhood, as the bulk of customers who visit food trucks live in the neighbourhood where the food truck is stationed.


Risk management is crucial for all businesses, regardless of size, nature, or kind. As a result, food truck insurance is recommended to reduce the risk of unforeseen situations.

Competitor Analysis

A business plan is incomplete unless it includes a thorough examination of competitors’ activities. Competitor analysis aids in

Identifying market gaps, pricing products or services, anticipating risks and problems.

As a result, you need to first identify your market competitors and then evaluate their strengths and shortcomings in order to develop an appropriate plan.

Hygiene and Environmental Sustainability.

Other considerations to consider when starting a food truck business are hygiene and environmental sustainability. It is critical to maintain hygiene inside and outside the food truck. Furthermore, you should adequately prepare how to dispose of generated waste so that it does not pollute the environment.


To summarise, the combination of culinary enthusiasm, strategic planning, and entrepreneurial spirit can pave the road for success in the food truck industry. By painstakingly designing your food truck business plan from concept to execution, you will be well-positioned to succeed in the ever-changing environment of running a food truck business. 

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