A very famous chef quote says “The best dishes are very simple. –Auguste Escoffier ” The food and beverage industry is one of the broader sectors of hospitality where simplicity is defined by diverse perspectives. “FOOD TRUCK” is the simplest example of street food served by moving vehicles. With an increase in the disposable income of the middle class; Spending on fast food, nutritional awareness, mobile lifestyle and need for take away food has made this model a popular choice among the Indian population, both as customers and investors. According to a study, this industry will achieve revenue growth at a rate of 3.7% in the next five years, which represents significant growth for a newly introduced industry.
It is becoming a selective choice over a regular restaurant for new business activity with little investment and minimal risk involved. Some of its benefits are listed below.
It is considered to be a low investment with high profitability food business ideas, mainly because it involves a minimal investment compared to a tabletop restaurant. This is one of the main competitive advantages of having a food truck instead of a normal restaurant. Also, to reduce capital investment, the purchase of a truck can be substituted for rental. The selection of necessary equipment and machinery can then be managed according to the range of the menu, such as kitchen equipment, including exhausts, grills, heat lamps and any other specialty equipment that your particular food needs.
Another advantage is that it does not require the investment in expensive public services, hiring a wide range of personnel and taxes applicable to the usual restaurants. This reduces most of the capital and operational investment, providing disposable income from capital to spend on menu engineering and marketing. On the other hand, its operating costs are from month to month and are limited according to the need and scope of operations or can be paid flexibly to manage the cost factor, as well as does not require disturbing the operation of maintenance and repair of routine. they are easily manageable and even replaceable without a large capital investment.
They are more attractive and hygienic to look at with a better value for money in food, as described by most customers, which is why they have become the latest fad in the world of food and beverages.
Offers pocket-sized deals for all consumers. The price range starts from Rs 10 to Rs 200 to Rs 500 varying in every possible way: vegetarian or non-vegetarian, starters to complete the meal. In a country like India, where there is no end for street food items, the menu changes every 5 km providing endless varieties to please the customer with inexpensive meals.
Compared to street food, food truck foods and services are observed to be more hygienic and are a better choice due to many reasons, such as the use of disposable cutlery, the mobile structure that makes it easier to maintain and clean , the configuration is similar to that of the restaurant, so it can offer better nutritional quality in food compared to street food, etc.
When it comes to taking risks in business, this model is superior to a regular start-up restaurant with a low risk factor. Restaurants are limited by location, while food trucks are flexible. The location plays an important role in the success of the food and beverage establishment, since it generates a large influx of public. This concept works with quality food at a low price, so it is required to sell in quantity to generate the maximum income where the location plays an important role.
Its mobility function also works as a marketing tool to create your own product brand and provides flexibility in the operation, such as going from the regular sale to being part of a larger event as a secondary source or a certain part of the menu and many more where the person’s imagination leads.
They are also flexible in terms of structure modification (menu engineering, service management, product design and exploration of new products), as well as concept expansion (product or business). Compared to the usual restaurant, its dynamics are more versatile and adaptable to changes over time due to the small setup, limited equipment and staff.
This has become the best platform for the new entrant in the food and beverage industry, allowing better control and more flexibility. Apparently this is the best avenue for first-time entrepreneurs as they can do their research and experiment with their model before venturing into setting up a high-investment, high-risk casual restaurant. After acquiring a comprehensive knowledge, one can plunge into a conclusion about what would work best for their restaurant. The future of food trucks appears to be high on the profit chart in developing India.