Are you about starting a food truck business in India? If YES, here is a complete sample food truck business plan template & feasibility report you can use for FREE.
Okay, so we have considered all the requirements for starting a food truck business in India. We also took it further by analyzing and drafting a sample food truck marketing plan template backed up by actionable guerrilla marketing ideas for food truck companies. So let’s proceed to the business planning section.
What is a Food Truck?
A food truck is a large truck or means of transportation that is equipped to cook and sell food, ice cream and snacks. It is also common to see food trucks sell French fries, sandwiches, hamburgers, and fast food. Little wonder food trucks and other portable food kiosks are on the front line of the street food industry and they serve an estimated 2.5 billion people daily.
If you want to start a food truck business in india, then you should ensure that you carry out thorough feasibility studies and market survey. This will enable you properly launch the business in a good location and then hit the ground running.
Business plan is yet another very important business document that you should not take for granted while launching your own food truck business. Below is a sample food truck business plan template that can help you to successfully write your own with little or no difficulty.
A Sample Food Truck Business Plan Template India
1. Industry Overview
Food trucks and businesses in this industry are designed to service areas where it might be difficult to construct the conventional restaurant such as carnival sites, construction sites, sporting event centers, camp grounds, beaches etc. Food trucks also take advantage of places like campuses, office complexes, military bases, mechanical villages, industrial parks, farmer’s markets, cinemas, religious centers etc. to sell their foods, snacks and drinks.
A recent research conducted in India shows that Indian fast food market is expected to grow at a CAGR of 18 percent by 2022 due to changing consumer behavior and demography.
The fast food market in India is expected to be worth US$ 27.57 billion by 2022 and about 10 percent of the fast food market in India is organized. NOVONOUS estimates that the organized fast food market in India is expected to grow at a CAGR of 27 percent by 2022.
The report also shows that vegetarian fast food constitutes around 45 percent of the whole fast food market in India and it is expected to grow at a CAGR of 18 percent by 2022. Fast food Casual dining restaurants (CDRs) market in organized fast food sector in India is projected to grow at a CAGR of 27 percent by 2019-20.
Non-casual dining restaurants (NCDR) or fast casual dining restaurants have gained tremendous market share in the last 10-15 years. Non-Casual dining restaurants market in organized fast food sector in India is also projected to grow at a CAGR of 27 percent in next 5 years. Quick Service Restaurants (QSRs) market in organized fast food sector in India is projected to grow at a CAGR of 20 percent by 2019-20.
Food trucks have been around for years, they are popular when it comes to serving construction sites, camp grounds, factories, and other blue-collar work locations.
The industry is meeting a need in the society as people who don’t have the time to search for restaurants find it time saving and cheaper to patronize food trucks. Food trucks are not only patronized for their affordability but also because they save time.
Recently, there has been appreciable increase in the number of food truck businesses in India. This increase can be attributed to creativity, the change in lifestyle of the average Indian and of course post – recession and economic factors. In essence the food industry is growing and the future is still bright for the industry.
Conventional restaurant owners are venturing into the food truck business because it is easier for them to attract sales when they are mobile as against being positioned in one location. For example, a food truck can visit more than two event venues in a day to sell food and drinks.
The food truck business is indeed a profitable line of business in India and it is open for any aspiring entrepreneur to come in and establish his or her business; you can choose to start on a small scale servicing a community or you can choose to start on a large scale with several food trucks in key cities around India.
2. Executive Summary
Karina Mahatma® Food Truck, LLC is a licensed food truck business that will be based in Bangalore – Karnataka, India. Bangalore, formally designated as Bengaluru, is the capital of Karnataka state and the fourth most populous Indian city with a population of 10.6 million people.
Bangalore uses a large number of spoken languages including English, Kannada, Hindi, Konkani, Telugu, and Malayalam. Different branches of Hinduism chose the city as a place to build a large number of temples. Bangalore is also the birthplace of famous scientific and educational institutions of the nation like IISC and NCBS.
We are a unique food truck brand simply because we do not just sell assorted fast food, but we will also engage in the sale of our franchise and also offer training and consultancy services in line with our area of business.
Karina Mahatma® Food Truck, LLC was founded by the awarding winning food nutritionist and business mogul – Mrs. Karina Mahatma who has a B.Sc. in Food Science Technology and a Master’s Degree in Business Administration (MBA).
She has robust experience in the food and drinks line of business having worked at senior management positions for some of the leading fast food companies in India prior to starting Karina Mahatma® Food Truck, LLC.
Because of our corporate goal of becoming one of the leading food truck companies in India, we are willing to invest in some of the finest professionals we can find and also, we have set plans in place to acquire the best of mobile food trucks and cooking utensils.
Our food trucks will be customized to fit into the kind of ideas we have of how a top – rated food truck should look like. When it comes to hygiene, we have put plans, processes and structures in place that will ensure that we are always at the top of our game. We have been able to secure permits from all relevant departments in the state of Karnataka.
Karina Mahatma® Food Truck, LLC is set to redefine how the food truck business should be run, not just in Bangalore – Karnataka, but also in the whole of India and Asia, which is why we have put plans in place for continuous training of all our staff.
It is a known fact that the demand for fast food via mobile food truck is not going to plummet any time soon, which is why we have put plans in place to continue to explore all available market around the cities where our mobile food trucks will transverse.
At Karina Mahatma® Food Truck, LLC, our strongest selling point is the unique taste of the different types of fast foods that we sell. There is hardly any customer that will taste any of our products who would not want to come back and make more purchase.
Karina Mahatma® Food Truck, LLC will at all times demonstrate her commitment to sustainability, both individually and as a firm, by actively participating in our communities and integrating sustainable business practices wherever possible.
We will ensure that we hold ourselves accountable to the highest standards by meeting our client’s needs precisely and completely.
3. Our Products and Services
Karina Mahatma® Food Truck, LLC is an establishment that primarily prepares, serve / sell fast food, as well as drinks. As part our strategy to create multiple sources of income in line with our core business concept, we will run consultancy services and training.
Our intention of starting Karina Mahatma® Food Truck, LLC is to make profits from the industry and we will do all that is permitted by the law in India to achieve our aim and ambition. Here are some of our products and services;
- Selling burgers, sandwiches, pizza, pasta, chicken and chips, barbecued beef, fish, bacon, pork, chicken, turkey et al, coffee and other beverages, such as water, juice and sodas
- Training, Advisory and Consultancy Services
- Selling Franchise
4. Our Mission and Vision Statement
- Our vision is to be amongst the top 5 leading food truck companies in India before our 7th year anniversary.
- Our mission is to build a food truck business in India that will meet the needs of all our customers and potential customers in the regions/cities where we our food trucks will cover and to sell franchise all across India and Asia.
Our Business Structure
As part of our plan to build a top – flight food truck business in Bangalore – Karnataka, we have perfected plans to get it right from the onset which is why we are going the extra mile to ensure that we have competent employees to occupy all the available positions in our company.
We will ensure that we only hire people that are qualified, honest, hardworking, customer centric and are ready to work to help us build a prosperous business that will benefit all our stake holders. As a matter of fact, profit-sharing arrangement will be made available to all our senior management staff and it will be based on their performance for a period of five years or more depending how fast we meet our set target.
The picture of the kind of food truck business we intend building and the goals we want to achieve is what informed the amount we are ready to pay for the best hands available in the food truck industry in India as long as they are willing and ready to work with us to achieve our business goals and objectives.
Below is the business structure that we will build at Karina Mahatma® Food Truck, LLC;
- Chief Executive Officer
- Sales and Marketing Officer
- Accountants / Cashiers
- Truck Drivers
5. Job Roles and Responsibilities
Chief Executive Officer – CEO (Owner):
- Increases management’s effectiveness by recruiting, selecting, orienting, training, coaching, counseling, and disciplining managers; communicating values, strategies, and objectives; assigning accountabilities; planning, monitoring, and appraising job results; developing incentives; developing a climate for offering information and opinions
- Creates, communicates, and implementing the organization’s vision, mission, and overall direction – i.e. leading the development and implementation of the overall organization’s strategy
- Responsible for fixing prices and signing business deals
- Responsible for providing direction for the business
- Responsible for signing checks and documents on behalf of the company
- Evaluates the success of the organization
- Oversees the smooth running of the food truck business
- Responsible for training, evaluation and assessment of workers
- Ensures smooth operation of equipment by completing preventive maintenance requirements; calling for repairs as at when due.
- Ensures that the food truck meets the expected safety and health standard at all times.
- Responsible for overseeing the smooth running of HR and administrative tasks for the organization
- Defines job positions for recruitment and managing interviewing process
- Carries out induction for new team members
- Responsible for training, evaluation and assessment of employees
- Oversees the smooth running of the daily office activities
Sales and Marketing Manager
- Manages external research and coordinate all the internal sources of information to retain the organizations’ best customers and attract new ones
- Models demographic information and analyze the volumes of transactional data generated by customer purchases
- Identifies, prioritizes, and reaches out to new partners, and business opportunities et al
- Responsible for supervising implementation, advocate for the customer’s needs, and communicate with clients
- Documents all customer contact and information
- Represents the company in strategic meetings
- Helps to increase sales and growth for the company
- Responsible for preparing financial reports, budgets, and financial statements for the organization
- Provides managements with financial analyses, development budgets, and accounting reports; analyzes financial feasibility for the most complex proposed projects; conducts market research to forecast trends and business conditions.
- Responsible for financial forecasting and risks analysis.
- Performs cash management, general ledger accounting, and financial reporting
- Responsible for developing and managing financial systems and policies
- Responsible for administering payrolls
- Ensures compliance with taxation legislation
- Handles all financial transactions for the organization
- Serves as internal auditor for the organization
- Drives the food truck
- Assists in loading and off – loading cooking utensils and accessories
- Delivers customer’s orders promptly
- Handles any other duty as assigned by the sales and marketing executive and manager
- Responsible for preparing and selling burgers, sandwiches, pizza and pasta chicken and chips, barbecued beef, fish, bacon, pork, chicken, turkey or corn et al, coffee and other drinks
- Handles customers enquiries
- Assesses customers’ needs and preferences and makes recommendations
- Provides recommendations and suggestions to customers
- Serves customers in a friendly and helpful manner
- Demonstrates a thorough knowledge of menus
- Responsible for cleaning the food truck at all times
- Responsible for washing serving wares and utensils used in the food truck
- Ensures that toiletries and supplies don’t run out of stock
- Any other duty as assigned by the manager
6. SWOT Analysis
Because of our drive for excellence when it comes to running a standard food truck business, we were able to engage some of the finest business consultants in Bangalore – Karnataka to look through our business concept and together we were able to examine the prospects of the business and to access ourselves to be sure we have what it takes to run a standard food truck company that can compete favorably in the industry.
In view of that, we were able to take stock of our strengths, weakness, opportunities and also the threats that we are likely going to be exposed to in Bangalore – Karnataka and even in India as a whole. Here is a of what we got from the SWOT Analysis conducted for Karina Mahatma® Food Truck, LLC;
Our strength lies in the fact that we have a wide range of fast foods and drinks that can meet the needs of a wide range of customers. We have state of the art food trucks and utensils that has positioned us to meet the market demand of food even if the demand tripled over night.
Another factor that counts to our advantage is the background of our Chief Executive Officer; she has a robust experience in the industry and very good academic qualification to match the experience acquired which has placed her amongst the top – flight professionals in India. We are not ignoring the fact that offering consultancy services and running a standard training center is going to count as a positive for us.
The fact that we are setting up a food truck business in a city with other food trucks and of course fast food restaurants may likely pose a challenge for us in breaking into the fast-growing market in Bangalore – Karnataka. In essence our chosen location might be our weakness. But nevertheless, we have plans to launch out big.
The opportunities available to us are unlimited. Loads of people consume fast foods on a daily basis and all what we are going to do to push our products to them is already perfected. There are also loads of people who would want to learn how to operate a food truck business and they will readily find our government approved training center ideal for them to fulfill that goal.
The threat that is likely going to confront us is the fact that we are competing with already established food truck companies and fast food restaurants in Bangalore – Karnataka and also there are other entrepreneurs who are likely going to launch similar businesses within the location of our business.
Another threat that we are likely going to face is unfavorable government policies and of course economic downturn. Usually economic downturn affects purchasing/spending powers.
7. MARKET ANALYSIS
- Market Trends
Food Truck is becoming a growing trend in India and one interesting aspect of it is that it’s the youths who are taking it up as careers and they are living up to all our expectations. Let it be healthy, of good quality, cheap and most importantly freaking delicious. The main objective of a food truck is handy, cheap and tasty food. This makes people want to go there between office breaks or college breaks or just to hang out with friends.
8. Our Target Market
When it comes to fast food, there is indeed a wide range of available customers. In essence, our target market can’t be restricted to just a group of people, but all those who love fast food and those who would want to try them out. In view of that, we have conducted our market research and we have ideas of what our target market would be expecting from us.
We are in business to engage in the sale of fast food and drinks to the following groups of people;
- Corporate Executives
- Business People
- Military Men and Women
- Sports Men and Women
- Everyone who resides in our target locations
Our Competitive Advantage
We are aware of the growing competition in the food truck industry in India and we are prepared to compete favorably with other food truck companies in Bangalore – Karnataka and throughout India.
Karina Mahatma® Food Truck, LLC is launching a standard food truck company that will indeed become the preferred choice of residents of Bangalore – Karnataka and every city where we intend deploying our food trucks.
Part of what is going to count as competitive advantage for Karina Mahatma® Food Truck, LLC is the vast experience of our management team, we have people on board who understand how to grow a business from the scratch to becoming a national phenomenon. So also, the wide varieties of fast food that we retail and our excellent customer service culture will count as a strong strength for us.
Lastly, our employees will be well taken care of, and their welfare package will be among the best within our category in the industry, meaning that they will be more than willing to build the business with us and help deliver our set goals and achieve all our objectives.
9. SALES AND MARKETING STRATEGY
- Sources of Income
Karina Mahatma® Food Truck, LLC is established with the aim of maximizing profits in the food truck industry in India and we are going to go all the way to do all it takes to sell a wide range of fast foods and drinks to a wide range of customers.
Karina Mahatma® Food Truck, LLC will generate income by offering the following products and services;
- Selling burgers, sandwiches, pizza and pasta chicken and chips, barbecued beef, fish, bacon, pork, chicken, turkey or corn et al, coffee and other beverages, such as water, juice and sodas
- Training, Advisory and Consultancy Services
- Selling Franchise
10. Sales Forecast
One thing is certain when it comes to food truck business, if your meals are tasty and if your food truck is easily accessible, you will always attract customers cum sales that will sure translate to increase in revenue for the business.
We are well positioned to take on the available market in Bangalore – Karnataka and every city where our fast food will be sold and we are quite optimistic that we will meet our set target of generating enough profits from our first six months of operation and grow the business and our clientele base.
We have been able to critically examine the food truck industry, we have analyzed our chances in the industry and we have been able to come up with the following sales forecast. The sales projections are based on information gathered on the field and some assumptions that are peculiar to startups in Bangalore – Karnataka, India.
- First Fiscal Year: INRs. 200,000
- Second Fiscal Year: INRs. 450,000
- Third Fiscal Year: INRs. 750,000
N.B: This projection was done based on what is obtainable in the industry and with the assumption that there won’t be any major economic meltdown and there won’t be any major competitor offering same products as we do within same location where our food trucks will transverse. Please note that the above projection might be lower and at the same time it might be higher.
- Marketing and Sales Strategy
Before choosing a location to launch Karina Mahatma® Food Truck, LLC, we conducted a thorough market survey and feasibility studies in order for us to be able to penetrate the available market where we intend positioning our business. We have detailed information that we were able to utilize to structure our business to attract the number of customers we want to attract per time.
We hired experts who have good understanding of the food truck industry to help us develop marketing strategies that will help us achieve our business goal of winning a larger percentage of the available market in Bangalore – Karnataka and subsequently throughout India.
In summary, Karina Mahatma® Food Truck, LLC will adopt the following sales and marketing approach to sell our fast foods and drinks;
- Introduce our food truck brand by sending introductory letters to residents, park managers and other stakeholders both in Bangalore – Karnataka and in other cities in India
- Engage in roadshows in targeted communities from time to time to sell our products and promote our food truck company
- Advertise our products in community-based newspapers, local TV and radio stations
- List our business and products on yellow pages ads (local directories)
- Leverage on the internet and mobile apps to promote our food truck brands
- Engage in direct marketing and sales
- Encourage the use of Word of mouth marketing (referrals)
11. Publicity and Advertising Strategy
Despite the fact that our food truck company is a standard one with a wide range of meals and drinks that can favorably compete with other leading brands in India, we will still go ahead to intensify publicity for all our products and brand.
Karina Mahatma® Food Truck, LLC has a long – term plan of deploying our food trucks in various locations all around India and also to sell our franchise which is why we will deliberately build our brand to be well accepted in Bangalore – Karnataka before venturing out to other cities in India.
As a matter of fact, our publicity and advertising strategy is not solely for selling our foods and drinks but to also effectively communicate our brand. Here are the platforms we intend leveraging on to promote Karina Mahatma® Food Truck, LLC;
- Place adverts on both print (community based newspapers and magazines) and electronic media platforms
- Sponsor relevant community programs
- Leverage on the internet and social media platforms like Instagram, Facebook, twitter, et al to promote our brand
- Install our billboards in strategic locations all around Bangalore – Karnataka
- Engage in roadshows from time to time in targeted communities
- Distribute our fliers and handbills in target areas
- Position our Flexi Banners at strategic positions in the location where we intend getting customers to start patronizing our products.
- Ensure that all our staff members wear our customized clothes, and all our food trucks are customized and well branded.
12. Our Pricing Strategy
The prices of our burgers, sandwiches, pizza and pasta chicken and chips, barbecued beef, fish, bacon, pork, chicken, turkey or corn et al, coffee and other beverages will be what is obtainable in the market. In fact, we will try as much as we can to sell below the industry’s average so as to attract loads of customers.
We are aware that pricing is one of the key factors that gives leverage to a food truck business, and it is normal for consumers to go to places where they can get good deals. We are aware of this trend which is why we have put structures in place that will enable us retail our products a little below the industry’s average.
We will ensure that we reduce our overhead, and we are ready to run on low profit margin for the first six months of launching the business just for the purpose of attracting loyal clients and build our clientele base. We also have plans in place to discount our fast foods and drinks once in a while and also to reward our loyal customers.
- Payment Options
The payment policy adopted by Karina Mahatma® Food Truck, LLC is all inclusive because we are quite aware that different customers prefer different payment options as it suits them but at the same time, we will ensure that we abide by the financial rules and regulation of the government of India.
Here are the payment options that Karina Mahatma® Food Truck, LLC will make available to her clients;
- Payment with cash
- Payment via online bank transfer
- Payment via check
- Payment via Point of Sale Machines (POS Machines)
- Payment via mobile money transfer
In view of the above, we have chosen banking platforms that will enable our clients make payment for food and drinks purchased without any stress on their part. Our bank account numbers will be made available on our website and promotional materials to clients who may want to deposit cash or make online transfer for our fast foods and drinks and training services.
13. Startup Expenditure (Budget)
In setting up any business, the amount or cost will depend on the approach and scale you want to undertake. If you intend to go big by renting a place for your back office, then you would need a good amount of capital as you would need to ensure that your employees are well taken care of, and that your facility is conducive enough for workers to be creative and productive.
The tools and equipment that will be used are nearly the same cost everywhere, and any difference in prices would be minimal and can be overlooked. As for the detailed cost analysis for starting a food truck business; it might differ in other countries due to the value of their money.
When it comes to starting a food truck business, the major areas that you will look towards spending the bulk of your cash is in the purchase of food trucks, latest grillers and accessories. Aside from that, you are not expected to spend much except for paying of your employees and the purchase of supplies.
These are the key areas where we will spend our startup capital on;
- The total fee for registering the business in India – INRs. 9,200
- Legal expenses for obtaining licenses and permits as well as the accounting services (software, P.O.S machines and other software) – INRs. 27,300.
- Marketing promotion expenses for the grand opening of Karina Mahatma® Food Truck, LLC; in the amount of INRs. 13,500 and as well as flyer printing (2,000 flyers at INRs. 1.00 per copy) for the total amount of – INRs. 2,000.
- The cost for hiring Business Consultant – INRs. 22,500.
- Insurance (general liability, workers’ compensation and property casualty) coverage at a total premium – INRs. 22,400.
- Other start-up expenses including stationery (INRs. 5,000) and phone and utility deposits (INRs. 12,500).
- Operational cost for the first 3 months (salaries of employees, payments of bills et al) – INRs. 100,000
- The cost for start-up inventory (beef, oil, sugar, eggs, butter, flour and milk, chocolate chips, nuts, coconut, cocoa powder, pudding, mini-marshmallows and peanut butter and packaging materials et al) – INRs. 80,000
- Storage hardware (bins, rack, shelves, food case) – INRs 13,720
- The cost for counter area equipment (counter top, sink, ice machine, etc.) – INRs. 19,500
- Cost of purchase of a well – equipped mobile food trucks – INRs. 120,000
- The cost for store equipment (cash register, security, ventilation, signage) – INRs. 14,750
- The cost of launching a website – INRs. 7,000
- The cost for our opening party – INRs. 15,000
- Miscellaneous – INRs. 10,000
We would need an estimate of seven hundred thousand Indian Rupees (INRs 700,000) to successfully set up our food truck business in Bangalore – Karnataka.
Generating Startup Capital for Karina Mahatma® Food Truck, LLC
Karina Mahatma® Food Truck, LLC is a family business that is owned and financed by Mrs. Karina Mahatma and her immediate family members. They do not intend to welcome any external business partners which is why he has decided to restrict the sourcing of the startup capital to 3 major sources.
These are the areas we intend generating our startup capital;
- Generate part of the startup capital from personal savings and sell of stocks
- Source for soft loans from family members and friends
- Apply for loan from the bank
N.B: We have been able to generate about INRs. 700,000 (Personal savings INRs. 180,000 and soft loan from family members INRs. 20,000) and we are at the final stages of obtaining a loan facility of INRs. 500,000 from our bank. All the papers and documents have been signed and submitted, the loan has been approved and any moment from now our account will be credited with the amount.
14. Sustainability and Expansion Strategy
The future of a business lies in the number of loyal customers that they have, the capacity and competence of their employees, their investment strategy and business structure. If all of these factors are missing from a business, then it won’t be too long before the business closes shop.
One of our major goals of starting Karina Mahatma® Food Truck, LLC is to build a business that will survive off its own cash flow without the need for injecting finance from external sources once the business is officially running. We know that one of the ways of gaining approval and winning customers over is to retail our fast foods and drinks a little bit cheaper than what is obtainable in the market and we are prepared to survive on lower profit margin for a while.
Karina Mahatma® Food Truck, LLC will make sure that the right foundation, structures and processes are put in place to ensure that our staff welfare are well taken of. Our company’s corporate culture is designed to drive our business to greater heights and training and retraining of our workforce is at the top burner.
As a matter of fact, profit-sharing arrangement will be made available to all our management staff and it will be based on their performance for a period of three years or more. We know that if that is put in place, we will be able to successfully hire and retain the best hands we can get in the industry; they will be more committed to help us build the business of our dreams.
- Business Name Availability Check: Completed
- Business Registration: Completed
- Opening of Corporate Bank Accounts: Completed
- Securing Point of Sales (POS) Machines: Completed
- Opening Mobile Money Accounts: Completed
- Opening Online Payment Platforms: Completed
- Application and Obtaining Tax Payer’s ID: In Progress
- Application for business license and permit: Completed
- Purchase of Insurance for the Business: Completed
- Conducting feasibility studies: Completed
- Generating capital from family members: Completed
- Applications for Loan from the bank: In Progress
- Writing of Business Plan: Completed
- Drafting of Employee’s Handbook: Completed
- Drafting of Contract Documents and other relevant Legal Documents: In Progress
- Design of The Company’s Logo: Completed
- Printing of Packaging, Marketing/Promotional Materials: In Progress
- Recruitment of employees: In Progress
- Creating Official Website for the Company: In Progress
- Creating Awareness for the business both online and around the community: In Progress
- Health and Safety and Fire Safety Arrangement (License): Secured
- Opening party / launching party planning: In Progress
- Establishing business relationship with vendors – wholesale suppliers / merchants: In Progress
- Purchase of mobile food trucks with standard kitchen: Completed