How to start a food truck business?

Key Learnings from the Video

The food truck business is very popular throughout the world.

1. Equipment and Setup Cost  Food Truck Business

Food truck business -costing

CAPEXValue (in rupees)OPEXValue (in rupees)
Food truck (second hand)2,00,000Grocery (vegetables and fruits)5,000 – 6,000
Food truck (rent)15,000-30,000Disposables6,000
POS billing machine10,000Fuel and gas5,000
Music system3,000Salary (1 cook and 1 helper)30,000
Equipment -mixer grinder and griller7,000  
Grocery stock – spice and oil10,000  
Marketing cost (one time)10,000  
Licence fee10,000  
Miscellaneous cost5,000  

2. Food Truck Business – Location

A high footfall market or any office building is the best place for a food truck business. For example, Gurugram’s Sector 29 market is famous for its food truck business.

You can also run a food truck business in the shopping complex compounds such as DLF Mall in Saket, Delhi.

Ideally, you should start a food truck business, wherein, the competition is less.

3. Food Truck Business – Licences

To start a food truck business, you require the following licences:

  • Food Safety and Standards Authority of India (FSSA) licence
  • Health Licence and Safety Licence issued by municipality
  • Police clearance
  • GST registration

4. Food Truck Business – Funding  

To start a food truck business, you can collect fund in the following ways:

i. Bank loan: You can take a loan of Rs. 3,00,000 from any bank.

ii. Family and friends: You can ask and convince your family members or friends to invest in your business.

5. Marketing

To promote your business and reach new customers you can do marketing in the following ways:

i. Online method

  • Search food bloggers of your city who are very active on Facebook and Instagram
  • Invite these food bloggers to your food truck and offer them a free meal
  • Ask them to provide genuine reviews by making videos and vlogs 

ii. Social media

  • Post videos of your food and customers on Facebook, Instagram, LinkedIn, and YouTube on a daily basis
  • Make your truck a destination for any celebration on social media
  • Launch new offers each month and distribute your menu in your target area

iii. Do something new for customers every day

  • Always do something new for your customers
  • For example, you can offer free food to the best dancing couple on your music

iv. Register on food delivery platforms

  • Register your food truck business on food delivery platforms like Swiggy and Zomato to increase your visibility

6. Food Truck Business – Profit

In the food business, the profit margin is very high. There is about 40-200% margin in some food items like burgers, momos, chowmein, healthy salads, and healthy shakes. For example, the selling cost of a healthy milkshake is Rs 100-200 while its making cost is not more than Rs. 40-50.

7. Food Truck Business – Return on Investment (ROI)


  • If there is a footfall of “30-40 customers” everyday then an evening food truck can easily serve 100 dishes on average. The number of customers can increase on the weekends or on the basis of location.
  • The minimum profit margin is 40% in a food truck business.
  • Profit depends on the pricing and menu. However, as per industry standards, you can easily earn a profit of Rs.40 on a Rs.100 per dish.

Monthly revenue

  • If you sell 100 dishes per day for 26 days a month, the monthly revenue will be Rs. 2,60,000.
  • Your profit will be 40% of the revenue i.e. Rs.1,04,000.

Quarterly Revenue Plan

 1st month2nd month3rd month
Setup cost (including marketing cost)2,65,00010,000 (only marketing cost)10,000 (only marketing cost)
Raw material6,000×26= 1,56,0006,000×26 = 1,56,0009,000×26 = 2,34,000
Fuel and gas5,00011,0007,000
Total expenses4,62,0002,07,0002,89,000
Revenue2,60,000 (100 dishes per day)2,60,000 (100 dishes per day)3,90,000 (150 dishes per day)

Thus, the table shows that within three months, your food truck business will become profitable and generate positive ROI. The profit will increase with increasing popularity.

8. Food Truck Business – Points to be Considered

You should keep the following things in mind before starting the food truck business:

i. Food menu and quality

  • A food business’s success depends on taste and uniqueness.
  • Having a standard menu will not make your business much popular.
  • Quality and presentation is also an important factor thru which you will stand apart from other people in the fray.

ii. Location

  • A good location is very important for your business.
  • You can also move your truck to multiple locations to reach out to maximum customers.

iii. Hygiene

  • People always judge food businesses on the basis of cleanliness and hygiene.
  • You should make sure that your food truck and surrounding area are clean.

iv. Price vs. quantity

  • You should keep a balance between the price and quantity of the food to earn profit and provide value for money to the customers.

Massive Action Plan

  • Watch the “Hit or Flop” video  to decide whether you should start this business or not

Key Outcomes of the Video

  • Open food truck business at a high footfall market or any office building
  • Acquire police clearance and FSSAI licence
  • Keep your food truck and surrounding clean
  • Maintain a balance between price and quantity of food

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