Costs & Legal Permission Required for Food Van Business in India

Food vans are gaining popularity since they have fewer initial start-up expenses than restaurants or any other style. The food truck is a novel start-up idea, but it may be a profitable company approach if properly handled. A food van requires a trade licence from the local MCD and fssai food licence.

Advantages of Food Truck Business

The following are the benefits of starting a food van business in India:

Location Flexibility

As we all know, the location of a business can make or destroy it. Unfortunately, in the case of a café or restaurant, the location cannot be changed. However, site freedom is one of the primary benefits of a food van business in India. That means a food truck may easily operate in a variety of areas.

Low Price

In India, operating a food truck is 30 to 35% less expensive than opening a full-service hotel or restaurant.

Legal Permission Required

All food business owners must have particular food certifications to operate in India. Here’s a brief rundown of the legal approvals needed to launch a food van business in India.

• If your business earns less than 12 lakhs per year, an FSSAI registration is sufficient. However, you must obtain an FSSAI license if you earn more than that. This 14-digit number will also guarantee that you maintain the most significant levels of safety and hygiene for all your customers.
• Because your food truck will have gas and electric appliances, you will want a NOC from the Fire Department to verify there are no fire dangers.
• Depending on your region, you may require a letter of authorization or approval from the local municipal body.
• Because you will be driving a commercial vehicle for your business, you will require a vehicle licence from the RTO.
• If your municipality requires it, you must get a one-year Trade License or Eating House License.
• If you have more than ten employees, you must get a Shops and Establishment Registration from your state’s labour department.
• You will also need to obtain your state’s Pollution Control Board certificate.
• You can establish your company as a sole proprietorship, partnership, or LLP to limit risk. You must additionally obtain a firm PAN card and TAN in this situation.
• You are also strongly encouraged to obtain a new GST registration for your company online.

The Costs of Starting a Food Truck in India

• The most expensive aspect of starting such a business is purchasing the necessary food van and kitchen equipment. For example, a new 18-foot-long food van will cost between 7 and 8 lakhs. Many businesses, including Ashok Leyland, Tata and Mahindra, and Mahindra manufacture such trucks.
• If you don’t have enough finance to buy a new vehicle, you can buy a food van at a garage sale. A used vehicle will cost you between 3 and 4 lakhs. The vehicle will then need to be refurbished to make it as good as new, which would cost roughly 1 lakh.
• The overall cost of kitchen equipment will be approximately three lakhs. A juicer mixer, refrigerator or freezer, grill, steamer, exhaust, burner, and deep fryer are all required for most food van enterprises.
• You will need generators and big batteries with inverters to power all this equipment. This, coupled with the gasoline required to run the vehicle, will cost you around 40,000.
• Insurance plus the remaining processing expenses to get all of your licences, permits, and documents in place will total roughly Rs. 50,000.

Hiring more personnel is another cost connected with running a food van business. For example, you may need to hire an extra chef or one or two children to help you deliver orders. You can work with a third-party meal delivery service if you want to save money. In this instance, you must pay such partners a commission but will not be required to engage delivery boys or girls. The following are additional costs:

• Point-of-Sale software for your company will cost around Rs. 1500 each month.
• Staff uniforms for all your employees, including the cooks, will be a one-time expense of roughly Rs. 5,000.
• Marketing initiatives may range in price from Rs. 5,000 to 20,000.

Conclusion

Because the laws and regulations regulating the registration application for food business operators are quite extensive and severe, FBOs must meet the standards outlined in the regulations. As a result, it is prudent to seek expert guidance.