local mobile food truck
TRANSCRIPT
COST OF ENTRYLow(Rs.) High(Rs.) Notes
Cost of truck 4,50,000 9,00,000 Much lower than restaurant
Smallwares etc. 80,000 1,00,000 Similar to restaurant
License fees etc. 95,000 1,50,000 Slightly higher than restaurant
Insurance pre-pay 50,000 1,00,000 Higher than restaurant
Fuel 10,000 15,000 Higher than restaurant
Training 20,000 50,000 Similar to restaurant
Rent pre-pay 32,000 50,000 Lower than restaurant
Other 20,000 80,000 Legal fees, logo, website, etc.
Total 7,57,000 14,45,000 Much lower than restaurant
SALES ESTIMATE
How many people can you feed every 10 minutes?
- What is your max serve speed?
- How popular are your offerings?
Example: 1 customer/ 2 minutes = 5 customers/ 10 minutes = 30 customers every hour
HOW MUCH CAN YOU CHARGE?
100 small meals @ Rs30/ meal = Rs3000
30 big meals @ Rs70/ meal = Rs2100
Higher prices can make profitability easier as they better cover
some costs (e.g., food, labour), but food trucks may have
difficulty getting many customers to pay higher prices.
TARGET MARKET
Current Market: Students and workers in the urban area that are outside of their buildings walking around
in need of a snack or meal.
Potential Market:
Tourists and pedestrians or future new locations; College campuses outside of the city,
shopping areas, etc.
HOW THINGS CAN GO WELL
- Other avenues for revenue generation (e.g. – catering)- Very low food costs and labour - High utilization and high prices- Owner/operator, doesn’t need to make much money (long
hours, but low labor costs, e.g. falafel cart)- Operate in areas that doesn’t require much (e.g., low
license fees, low commissary fees, lower cost of truck, etc.)