Food truck emerging concept in hospitality
A very famous chef quote reads “The best dishes are very simple. –augusto escoffier The Food and Beverage industry is one of the largest hospitality sectors where Simplicity is defined by various 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 takeaway requirement 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 is significant growth for a newly introduced industry.
It is becoming a selective choice over a regular restaurant for new business ventures with low investment and minimal risk involved. Some of its benefits are listed below.
It is considered a low investment with high profit food business ideas mainly because it involves less financial investment as compared to a sit down restaurant. This is one of the main competitive advantages of operating a food truck instead of a normal restaurant. Also, to reduce capital investment, buying a truck can be substituted for leasing. The selection of necessary equipment and machinery can then be managed according to the menu range, such as cooking equipment including exhausts, grills, heat lamps, and any other specialized equipment your particular food needs.
Another advantage is that it does not require the investment in expensive public services, the hiring of a wide range of staff and the taxes applicable to the usual restaurants. This reduces most of the capital and operating investment, providing disposable capital income to spend on menu engineering and marketing. On the other hand, its operating costs are on a month-to-month basis and are limited according to the need and scope of operations or can be paid flexibly to manage the cost factor as well as it does not require disturbing the maintenance and repair operation of routine. they are easily manageable and even replaceable without a large capital investment.
They are more visually appealing and hygienic, with better quality food value for money, as described by most customers, which is why they have become the latest trend in the world of food and beverages.
It offers pocket deals for all the truth of the 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 to street food items, the menu changes every 5 km and provides endless varieties to please the customer with cheap meals.
Compared to street food, food truck food and services are considered a more hygienic and better option due to many reasons, such as the use of disposable cutlery, a mobile structure that facilitates maintenance and cleaning, the configuration is similar to that of a restaurant, so it can offer better nutritional quality of food compared to street food, etc.
When it comes to taking risks in business, this model is superior to a regular low risk factor startup restaurant. Restaurants are limited by location, while food trucks are flexible. Location plays an important role in the success of food and beverage outlets as it generates a high footfall. This concept works with quality food at low prices, so selling in quantity is required to generate maximum income where location plays an important role.
Its mobility feature also works as a marketing tool to create your own product brand and provides flexibility in operation such as moving from regular sale to being part of a larger event as a secondary source or certain part of the menu and many more where the person’s imagination takes.
They are also flexible in terms of structure modification (menu engineering, service management, product design, and new product exploration) as well as concept (product or business) expansion. Compared to a normal restaurant, its dynamics are more versatile and adaptable to changes over time due to the small facility, limited equipment and staff.
This has become the best platform for the new entrant in the food and beverage industry, allowing for better control and more flexibility. Apparently, this is the best avenue for first-time entrepreneurs, as they can research and experiment with their model before venturing into setting up a high-investment, high-risk restaurant. After gaining a thorough understanding, one can dive into a conclusion about what would work best for their restaurant. The future of food trucks seems to be moving high on the profit chart in India’s developing countries.