What Legal Permissions Do I Need To Open A Food Truck Business in India?

In recent times, there are a number of restaurants opening up by offering a range of popular gourmet cuisines and regional fast food from around the world. In India, the fast-food trucks are becoming quite popular, especially in the metro cities across the country.

The reason for the increasing popularity of the food truck is because of the initial low start-up cost, lower than a restaurant or any other format. The food truck is a new start-up concept, but if it is done in the right manner, it can prove to be a profitable business option. You need FSSAI License  for Food truck as well as you need Trade license or Permission from Local MCD.

Overview of Food Truck Business in India

The term “Food Truck Business” denotes an eatery that can move to the place where customers are located. It is one of the hottest trends in the Food Sector right now. Further, the main reason for their growth is the continuous change in food demands.

This business is also known as Mobile Food Business and includes all sorts of food items, starting from ice cream to snack and barbeque food.

Further, as per a report published by the CISION PR Newswire, the Fast Food Market of India is expected to grow at 18% CAGR (Compound Annual Growth Rate) and to reach the worth of US$ 27.57 billion by the end of 2020.

Benefits of Food Truck Business

The benefits of starting a Food Truck Business in India are as follows:

• Flexible Location: As we know, a location is enough to make or break a business. In the case of a Café or Restaurant, one cannot change the location. However, one of the main benefits of a Food Truck Business in India is Flexible Location. That means a food truck can easily operate in multiple locations that, too, in a hassle-free manner.
• Low Investment: The cost of starting a Food Truck in India is 30 to 35% less than in comparison to a fully fledged hotel or restaurant.

The factors that assist in reducing the cost of a Food Truck Business are as follows:

1. Lesser Space;
2. Minimal Equipment and Cutlery;
3. Minimal Furnishing;
4. Less Staff;
5. No Rent or Lease;
6. Less Electricity;
7. Enable Food Experimenting

Due to low cost investment, a food truck owner can easily experiment in the quality of his/her food items to satisfy the needs of the customers, that, too without the fear of financial loss.

• Better Outreach: The Mobility Factor in a Food Truck Business gives it a benefit in better Customer Outreach than a Café or Restaurant. That means a café and restaurant waits for the customers to reach them, whereas a Food Truck Business has the advantage of reaching the customers to get its food tasted.

Market size of Food Truck Business in India

The food truck or the mobile kitchen business in India has huge potential as it is still in its nascent stage. In India, it is estimated to be growing at a rate of 8.4% annually. As per a National Restaurant Association report, it was estimated that by 2017-18 the revenue generated from the food truck business in India would touch 2.7 billion dollars approximately, a huge leap from 650 million dollars five years back.

Licenses required to start a Food Truck Business in India 

The Licenses required to start a Food Truck Business in India are as follow:

• FSSAI License: As a Food Truck Business comes under the domain of Food Business Operators (FBOs), it becomes compulsory for the owner to acquire FSSAI License prior to commencing its business operations.
• Vehicle Registration: As we know, a commercial vehicle plays a notable role in performing the business operations of the food truck. Therefore, a food truck owner must obtain a vehicle license granted by the RTO (Regional Transport Office) of commercial vehicles for starting a food truck business in India.
• GST Registration: If a food truck satisfies the criterion prescribed by the GST Act, it must obtain a compulsory GST Registration.
• Fire NOC: Every Food Truck Owner must obtain a Fire NOC or Fire Security Certificate from the State Fire Department in which he/she wants to start a Food Truck Business. The authorities will issue this certificate only after the proper installation of fire extinguishers and other safety measures in the truck.
• Shop and Establishment License: The main objective behind the introduction of the Shop License was to defend and safeguard the rights of the workers employed in the Food Truck.
• Kitchen and Vehicle Insurance: Nowadays, Food Trucks compulsorily need to apply for insurance policies such as Kitchen Insurance and Vehicle Insurance.
• Approval Letter from Local Municipal Authority: After choosing the Location for the Business, the owner must obtain a duly stamped Written Document, known as the Approval Letter from the Local Municipal Authority, for starting a Food Truck Business in India.
• NOC from RTO: Lastly, a food truck owner needs to acquire Commercial Vehicle Certificate from the RTO for selling food items on wheels.

How to get a Food Truck with Minimum Investment?

In the market, there is an exhaustive range of the food trucks available whose cost may vary on the features, modification, and the space required. When buying a food truck, one must consider getting a truck that has enough space, allowing mobility and it must have enough space to accommodate all the kitchen equipment in a proper manner.

Also, there are many manufacturers that can customize the food truck as per your requirement; however, it may elevate the price a little more for customization. Also one can opt to buy a second-hand food truck to save money.

Conclusion

The rules and regulations for the Food Business Operator registration application are very elaborate and stringent, and the FBOs need to fulfil all the requisites laid out under the regulations.

Therefore, it is wise to obtain the assistance of a professional. Hire Legal Window as your professional consultant as it offers services to help the FBOs in the procedure of the application for the food License.