How to Start a Food Stall Business in India: A Step-by-Step Guide
If you’re interested in starting a food truck business in India but need to know how to begin, this article will provide you with secrets and personal experiences for success.
Street food business in India takes time and effort. The perfect opportunity for anyone looking to break into the food industry is to start small. With our comprehensive guide, you’ll learn everything you need to know to start. Take your passion for food into a profitable business.
Brief overview of the Food cart business in India
When we look at the food truck business in India, it appears to be more organized. Roadside food stalls, vendors, and dhabas are the major unorganized forms. Almost all food truck businesses (QSR) operate in a service similar to quick service restaurants. Domino’s, McDonald’s, KFC, Burger King, and Pizza Hut are major and organized players in QSR.
Did you know that the global fast food market size was estimated to be around $980 billion in 2022 and is expected to grow to $1500 billion by 2032, i.e. an annual growth of about 6.5%? According to Statista, if we talk about the quick service restaurant (QSR) market in India was almost ₹17,190 crores in 2022. According to a 2023 report by BlueWeave Consulting, the market size of the food truck business in India is ₹15 crores.
This data must be more accurate since I already owned a food truck business. Because individual food truck businesses sell an average of ₹15 thousand per day, one person makes monthly sales of ₹4.5 lakhs and ₹54 lakhs per year. There are many food truck businesses all over India. Suppose there are 100 food trucks in each state (100*28 states) and 2800 food truck businesses in 28 states of India doing business of approximately 2800 × ₹54 lakhs in annual sales, then this is ₹15,120 crore.
The food truck business is not a small market but unorganized. You can consider starting a food truck business and then transitioning to a QSR or staying in the food truck business.
Growing Popularity and Opportunities in Food Truck Business in India
It’s harder to manage a rented store than a movable one, so they are becoming more popular. Every business wants customers’ comfort, so a food cart or food truck business is comfortable for customers to take orders easily. Whether customers want dining or takeaway does not matter.
Instead of renting a shop, a food cart or truck brings customers comfort. I am not saying that renting a shop or opening a restaurant is unfair. I am sharing my experience when I had a food truck. The restaurant business is different from the food cart business and can’t be compared. Because both have the same objective but in different ways.
Opportunities in the movable food business are endless. Most of the food trucks are on the roadside to gain more customers. Food trucks and carts operate similarly to Quick Service Restaurants (QSRs), catering to customers who crave convenient, on-the-go meals. The beauty of a roadside food cart or truck business lies in its ability to capitalize on impulse purchases. When a customer experiences a sudden craving, they’re likely to stop and buy from a conveniently located food vendor, making it an ideal business opportunity.
My experience says, that if your food quality and service are the best in the food truck business then the cost of acquiring customers is almost eliminated.
Identifying target audience and niche
The customer willing to pay for your product is your real target audience. Your target audience is the customer willing to pay for your product. Every business needs to consider demographic information (gender, age, occupation, income or education level, marital status, and religion) to tell them about their target audience to some extent. Later, the location of your outlet (food cart) can be determined based on demographic factors.
This method can increase the chances of your business being successful. Even this work is hardly done, and that is why most people fail in the beginning. And regrets after causing a loss worth lakhs. My experience says that if you do not have money then you can invest time and research well. It would be better to open a food cart. Those who have money to lose also do research, and then they can speed up their business by investing the money in marketing.
The cuisine should be anything from Indian, South Indian, Beverages, Sweets, Fruit Chaat, Ice Creams and Shakes, Chinese, Italian, Mughlai, and Afghani.
The Best Food Truck Items are Revealed
You can offer a variety of foods or a specific item/dish on the menu. The food cart owner may think it’s confusing if customers find a variety of foods on the menu, but it can be interesting for customers and not boring. Customers spend more time ordering different items each time. When there are different types of dishes, customers often spend more time and order again and again instead of sitting idly.
When a food cart owner works on a specific item/dish, it can be a more specialty-oriented food cart. This USP (Unique Selling Point) makes them more profitable as they have to focus on only one dish. This gives food cart owners an edge over competitors. A food truck menu with one dish or multiple dishes has advantages and disadvantages.
In my experience, it is not preferred to include too many dishes in the menu due to higher losses in the beginning. Only a limited 2-3 dishes should be served in the beginning. If there are enough ingredients for several dishes, but orders are not received accordingly, all the ingredients will go to waste. In the first few days or months of starting a food business, low order frequency leads to the waste of pre-cooked food and leads to losses instead of profits.
A restaurant menu consisting of one dish or multiple dishes, which one is best? Well, reading about “How to start a food truck business in India” currently. Menu design is a separate part of it. To maximize success, consider the following top-selling items for your food truck or stall:
1. Fruit Chaat
This may be a new concept, as I have never seen a food truck that serves only fruit chaats. However, this can be beneficial due to the trend of eating healthy food and snacks. A food chart is the best refreshment for a healthy body.
The food chart contains a variety of fruits that are cut into pieces or slices. Then different fruits are mixed and served to people on a plate. No established brand sells only fruit chaat. The fresh fruit market is billions of dollars in India.
2. Rolls & Wraps
Many people like rolls, a fast food. Nowadays, people love to eat rolls, which can become a global favorite snack like burgers and pizza.
Like burgers and pizza, rolls have variety. If one wants just one type of snack in a food cart that can also turn into a meal, rolls can be one of them. There are varieties like Veg Roll, Egg Roll, Chicken Roll, Paneer Roll, etc.
Well-known brands offer Rolls & Wraps – Faasos, Rolls Mania, Rolls King, and many other emerging brands.
3. Burger
It is one of the most common snacks that Indian people love to eat in groups. But still, the market leaders are not able to sell much from the unorganized sector. However, according to some reports, the organized market is growing faster than the unorganized sector. and is projected to grow at a CAGR of 15 percent during 2023-26
According to a Kennis Ventures Pvt Ltd report, the top burger brands in India are McDonald’s, Burger King, and JumboKing. Some emerging brands are Burger Singh, BOXO Burger, Biggies Burger, and Burgerman.
4. Pizza
Children or old people must have eaten pizza at one time or another in every corner of India. As Western influence is increasing on the people of India, the trend of Western food is also increasing.
Starting a pizza-selling business can be both easy and difficult. Since pizza is a brand name in itself, it already has customers so it becomes easier to sell. But as much as people love this dish, there are already restaurants in the market to offer it as good a taste as it is, so here it becomes a little difficult. If your pizza tastes great and you’re the only vendor in the area offering it, you’ll likely attract a loyal customer base and generate strong sales.
Domino’s Pizza is the largest pizza-selling brand in India and the world. Other dominating brands include Pizza Hut, La Pinoz Pizza, and Oven Story Pizza.
5. Chowmein/Noodles
India’s affinity for spicy cuisine makes Chow Mein/Noodles a favorite among Indians. This popular dish is found everywhere on Indian streets, making it a lucrative option for vendors. With its widespread appeal, Chowmein has become a brand in its own right, rivaling the popularity of pizza. Wherever crowds gather, Chowmein/Noodles consistently draws in more customers than other food items, making it an attractive choice for entrepreneurs looking to drive sales.
So, If you’re unsure what to sell from your food cart, consider Chinese items like Chowmein. Not only are they in high demand, but you can also easily hire experienced chefs or staff to help you get started. From my own experience running a food truck with a Chinese menu, I highly recommend starting with these crowd-pleasing options.”
6. Pasta/Macaroni
Pasta is a popular Italian food. Earlier, not many people ate it, but now more and more people are trying it. With the internet and social media, people are learning about different foods from around the world. Italian food used to be expensive and only available in fancy restaurants.
But now, pasta and other Italian dishes are available at local food stalls and restaurants, making them more affordable and accessible to everyone.
7. Shakes and Ice Cream
Shakes and Ice Cream are most commonly loved on summer days. Although they may be seasonal, India is a diverse country, so they do not impact sales that much. Whether on an empty stomach or a full stomach, people still like to eat shakes and ice cream.
8. Idli and Dosa
Idli and Dosa are two very popular South Indian foods that many Indians love to eat. If you sell these items from a food truck, they can be very profitable and attract a lot of customers.
9. Biryani
Biryani is the most selling item of the zomato. Indians love biryani, making it a top-selling item. You can make many varieties of biryani dishes that attract more people to your food cart.
The biryani market is huge, with organized players valued at Rs 3,000 crore and the unorganized sector worth over Rs 15,000 crore. This shows that there’s tremendous growth potential in the biryani business.
10. Beverages – Chai (Tea)/Coffee
As you know, water is necessary for the survival of every human being. Similarly, almost all Indians are fond of tea. Regardless of the season, people love drinking milk tea everywhere, from street corners to offices. This widespread love for tea has led to the rise of popular brands like MBA Chai Wala, Chaayos, and Chai Sutta Bar. If you’re starting a food business, consider offering tea, along with other popular beverages like coffee and lassi.
You can also serve a variety of snacks, such as sweets, cakes, momos, poha, vada pav, and regional specialties. People want to try Mumbai’s regional dishes in other cities as well, just like Delhi’s famous local food. So, there is no barrier to starting from which food item.
Disadvantage of starting a food truck business in India
Common Challenges in the Food Truck Business
- Building a food truck or stall requires a high investment.
- Locating a skilled and affordable blacksmith for a food truck or stall construction can be difficult.
- Securing a prime location for your food cart can also be difficult. Renting a shop and placing your cart in front of it can be a hassle-free solution, but this comes with its own set of challenges.
- Difficulties in hiring in low salary. You have to pay a better salary than other owners for the best staff or keep top talent.
- Staff unavailability can lead to business losses, making it essential to have some cooking skills yourself to ensure continuity.
- Furthermore, food truck owners must be mindful of local regulations and avoid littering, disturbing traffic, or disrupting public spaces. Failure to comply can result in penalties and reputational damage.
- Considering these challenges, alternative concepts like Cloud Kitchen may be a more appealing option. With a food license, you can start a Cloud Kitchen business from the comfort of your own home kitchen, avoiding the hassles associated with food trucks. Know more in detail about Cloud Kitchen.
Conclusion
The food truck business in India offers a wealth of opportunities for entrepreneurs. By selecting the most profitable items to sell and executing a well-planned business strategy, you can achieve significant returns on investment and build a thriving business.
