FOOD TRUCK BUSINESS

Lucknow Office: Sidhivinayak Building ,

27/1/B, Gokhlley Marg, Lucknow-226001

Delhi Office : Multi Disciplinary Training

Centre, Gandhi Darshan Rajghat,

New Delhi 110002

Email : info@udyami.org.in

Contact : +91 7526000333, 444, 555

PROJECT REPORT

FOOD TRUCK BUSINESS

PURPOSE OF THE DOCUMENT

This particular pre-feasibility is regarding Food Truck Business.

The objective of the pre-feasibility report is primarily to facilitate potential entrepreneurs in project

identification for investment and in order to serve his objective; the document covers various aspects

of the project concept development, start-up, marketing, finance and management.

[We can modify the project capacity and project cost as per your requirement. We can also prepare

project report on any subject as per your requirement.]

Particulars Finance

Machinery/Equipments 6.84

Working Capital Requirement 3.00

Grand Total 9.84

SOURCES OF FUND

PARTICULARS TOTAL

Capital/Internal Accrual 0.98

Term Loan 6.16

Working Capital Loan 2.70

Grand Total 9.84

Term loan of Rs.6.16 lacs and Working Capital limit of Rs. 2.70 lacs

FINANCIAL ASSISTANCE REQUIRED

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FOOD TRUCK BUSINESS

NATURE OF ACTIVITY

REGISTERED OFFICE

NAME OF PROPRIETOR

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FOODTRUCK

INTRODUCTION

foodtruckisalargevehicleequippedtocookandsellfood.

Some, including ice cream trucks, sell frozen or prepackaged food; others have

onboardkitchensandpreparefoodfromscratch.Sandwiches,hamburgers,French

fries,andotherregionalfastfoodfarearecommon.Inrecentyears,asso ciatedwith

the pop‐up restaurant phenomenon, fo

od trucks offering gourmet cuisine and a

varietyofspecialtiesandethnicmenushave becomeparticularlypopular.

Foodtrucks,alongwithportabl efoodboothsandfoodcarts,areonthefrontline

ofthestreetfoodindustry thatservesanestimated2.5billionpeopleeveryday.

FOODPROCESSINGINDUSTRYININDIA

InIndia,thefoodsectorhasemergedasahigh‐growthandhigh‐profitsectordue

toitsimmensepotentialforvalueaddition,particularlywithinthefood

processingindustry.



The food industry, which is currently valued at US$ 39.71 billion, is expected to

grow at a

 Compounded Annual Growth Rate (CAGR) of 11 percent to US$ 80.9

billionby2020.Accountingforabout32percentofthecountry’stotalfoodmarket,

TheGovernmentofIndiahasbeeninstrumentalinthegrowthanddevelopmentof

thefoodprocessingindustry.

Itcontributesaround14percentofmanufacturing

GrossDomesticProduct(GDP),

13percentofIndia’sexportsandsixpercentoftotal industrialinvestment. 

TheIndiangourmetfoodmarketiscurrentlyvaluedatUS$1.3billionandisgrowing

at a Compound Annual Growth Rate (CAGR) of 20 percent. India's organic food

marketisexpectedtoincreaseby

threetimesby2020.

TheorganizedfoodbusinessinIndiaisworthUS$48billion,ofwhichfooddelivery

is valued at US$ 15 billion.  With online food delivery players like Food Panda,

Zomato, TinyOwl and Swiggy building scale through partnerships, the organized

foodbusinesshasahugepotentialand

apromisingfuture.



THECONCEPTOFFOODTRUCKS

Afoodtruckisalargevehicleequippedtocookandsellfood.Afoodtruckislikea

restaurant on wheels. Some food trucks sell ice creams, frozen or prepackaged

food;othershaveonboardkitchensandpreparefood from scratch. Sandwiches,

hamburgers,Frenchfries,andotherregi onal fastfoodfarearecommon.



FOODTRUCKSINDUSTRY

Theindustrycomprisesestablishmentsprimarilyengagedinpreparingandserving

mealsfromamobiletruck.Foodisnormallyprepared,storedandcookedonthe

truck.Thetruckmayormaynotusethesamelocationeachday.



7P’SOFFOODTRUCKBUSINESS

1. Product:Productsincludemenuitemsandservicesthatfoodtruckprovides

forsale.Whiledevelopingaproductownershouldconsiderquality,design,

features,packaging,customerservice,andanysubsequentafter‐sales

service.



2. Place:Placeisinregardstodistribution,location,andmethodsofgetting

foodtruckproductstothecustomers.



3. Price:Priceconcernstheamountofmoneythatcustomersmustpayin

ordertopurchasethefoodtruckproducts.



4. Promotion:Promotionreferstotheactofcommunicatingthebenefitsand

valueoffoodtrucksproducttothecustomers.



5. People:Humanresourceswhichareassociatedwithfoodtrucklikechefs

andassistants.



6. Physicalevidence:Physicalevidencewillincludeambiance,foodtruck

decoration,Packing,Staffappearance.



7. Process:

oCapacityLevels:Maximumfoodstorage

oAccessibility:Reachabilityofcustomer

oOrdertaking

oFoodsafety

oPayment

oFeedback



DETAILS OF MACHINERY/EQUIPMENT

Particulars Amount(In Rs.)

1 Structure (Food truck-TATA 407) 125,000.00

2 Paint Job 30,000.00

3 Vinyl 25,000.00

4 Branding Boards 16,500.00

5 Stainless Steel Panelling 66,000.00

6 Aluminium Flooring 12,500.00

7 Exhaust Fan 12,500.00

8 Water System 9,500.00

9 Gas Supply 11,000.00

10 Logo and Truck Design 10,000.00

11 Truck Labour(matting, seat covers, bumpers, light etc) 72,500.00

12 Extensive Lights 12,500.00

13 Kitchen Equipments 60,500.00

14 Insulation 4,500.00

15 Generator 140,000.00

16 Invertor 24,000.00

17 Others 51,500.00

Total

683,500.00

DOUBLE DECKER FOOD TRUCK

Income Assumption

Particular/Type Food Truck

Number of Truck 1.00

no.

No. of Working Days 300.00 Days

Average customer per day 100

no.

Average Receipts per customer 75.00

Rs.

Gross Annual Realisation(100%) 22.50

Rs. In Lacs

PROJECT DETAILS

PARTICULARS I II III IV V

Proj Proj Proj Proj Proj

SOURCES OF FUND

Capital A/c

Opening Balance - 0.78 0.54 0.21 0.47

Add: Addition 0.98 - - - -

Add: Net Profit 0.80 1.26 1.67 2.51 3.57

Less : Drawings 1.00 1.50 2.00 2.25 2.50

0.78 0.54 0.21 0.47 1.54

Term Loan 5.47 4.10 2.74 - -

Current Liabilities

Working Capital Limit 2.70 2.70 2.70 2.70 2.70

Sundry Creditors 0.13 0.18 0.23 0.28 0.30

Other Current Liabilities 0.50 0.55 0.61 0.67 0.73

TOTAL : 9.59 8.07 6.49 4.11 5.27

APPLICATION OF FUND

Fixed Assets ( Gross) 6.84 6.84 6.84 6.84 6.84

Gross Dep. 1.03 1.90 2.64 3.27 3.81

Net Fixed Assets 5.81 4.94 4.20 3.57 3.03

Stock 1.00 1.25 1.45 1.60 1.85

Sundry Debtors 0.03 0.04 0.05 0.05 0.06

Cash and Bank 2.74 1.84 0.79 0.26 0.33

TOTAL : 9.59 8.07 6.49 5.48 5.27

- - - - -

PROJECTED BALANCE SHEET

PROJECTED PROFITABILITY STATEMENT

PARTICULARS I II III IV V

Proj Proj Proj Proj Proj

Capacity Utilization 40% 50% 60% 70% 80%

SALES

Revenue from Operations 9.00 11.00 13.50 16.00 18.00

Total (A) 9.00 11.00 13.50 16.00 18.00

Consumables 3.96 5.28 7.02 8.32 9.00

Power Expenses 0.45 0.55 0.68 0.80 0.90

Salary to Staff 0.90 1.10 1.35 1.60 1.80

Misc Expenses 0.90 1.10 1.35 1.60 1.80

Depreciation 1.03 0.87 0.74 0.63 0.54

Interest on Term loan 0.67 0.55 0.40 0.24 0.09

Interest on Working Capital limit 0.30 0.30 0.30 0.30 0.30

8.20 9.74 11.83 13.49 14.43

NET PROFIT 0.80 1.26 1.67 2.51 3.57

8.88% 11.41% 12.38% 15.68% 19.85%

ADD : DEPRECIATION 1.03 0.87 0.74 0.63 0.54

CASH ACCRUALS 1.83 2.13 2.41 3.14 4.11

PARTICULARS I II III IV V

Proj Proj Proj Proj Proj

SOURCES OF FUND

Incr. in Capital 0.98 - - -

Net Profit after tax 0.80 1.26 1.67 2.51 3.57

Depriciation & Exp. W/off 1.03 0.87 0.74 0.63 0.54

Incr. in Term loan 6.16 - - -

Incr. in working Capital limit 2.70 - - -

Incr. in Creditors 0.13 0.04 0.06 0.04 0.02

Incr. in Provisions 0.50 0.05 0.06 0.06 0.07

TOTAL : 12.30 2.22 2.53 3.24 4.20

APPLICATION OF FUND

Incr. in Fixed Assets 6.84 - - -

Incr. in Debtors 0.03 0.01 0.01 0.01 0.01

Incr. in Stock 1.00 0.25 0.20 0.15 0.25

Repayment of Term loan 0.68 1.37 1.37 1.37 1.37

Drawings 1.00 1.50 2.00 2.25 2.50

TOTAL : 9.55 3.12 3.58 3.78 4.12

Opening Cash & Bank Balance - 2.74 1.84 0.79 0.26

Add : Surplus 2.74 (0.90) (1.05) (0.53) 0.07

Closing Cash & Bank Balance 2.74 1.84 0.79 0.26 0.33

PROJECTED CASH FLOW STATEMENT

COMPUTATION OF RECEIPTS

Food Truck

Income Assumption

Particular/Type

Number of Truck 1.00 no.

No. of Working Days 300.00 Days

Average Customers per day 100.00 no.

Average Charges per customer 75.00 Rs. In Lacs

Gross Annual Realisation(100%) 22.50 Rs. In Lacs

CALCULATION OF WORKING CAPITAL REQUIREMENT

(i) Projected Sales 22.50 Lacs

(ii) Working Capital requirement

25% of Projected Sales 5.63 Lacs

(iii) Margin 2.25 Lacs

10% of projected Sales

(iv) MPBF 3.38 Lacs

Working Capital Limit Required 3.00 Lacs

REPAYMENT SCHEDULE OF TERM LOAN 11%

Year Particulars Amount Addition Total Interest Repayment Cl Balance

I Opening Balance

Ist Quarter - 6.16 6.16 0.17 - 6.16

IInd Quarter 6.16 6.16 0.17 - 6.16

IIIrd Quarter 6.16 - 6.16 0.17 0.34 5.81

IVth Quarter 5.81 - 5.81 0.16 0.34 5.47

6.16 0.67 0.68

II Opening Balance

Ist Quarter 5.47 - 5.47 0.15 0.34 5.13

IInd Quarter 5.13 - 5.13 0.14 0.34 4.79

IIIrd Quarter 4.79 - 4.79 0.13 0.34 4.45

IVth Quarter 4.45 - 4.45 0.12 0.34 4.10

0.55 1.37

III Opening Balance

Ist Quarter 4.10 - 4.10 0.11 0.34 3.76

IInd Quarter 3.76 - 3.76 0.10 0.34 3.42

IIIrd Quarter 3.42 - 3.42 0.09 0.34 3.08

IVth Quarter 3.08 - 3.08 0.08 0.34 2.74

0.40 1.37

IV Opening Balance

Ist Quarter 2.74 - 2.74 0.08 0.34 2.39

IInd Quarter 2.39 - 2.39 0.07 0.34 2.05

IIIrd Quarter 2.05 - 2.05 0.06 0.34 1.71

IVth Quarter 1.71 - 1.71 0.05 0.34 1.37

0.24 1.37

V Opening Balance

Ist Quarter 1.37 - 1.37 0.04 0.34 1.03

IInd Quarter 1.03 - 1.03 0.03 0.34 0.68

IIIrd Quarter 0.68 - 0.68 0.02 0.34 0.34

IVth Quarter 0.34 - 0.34 0.01 0.34 0.00

0.09 1.37

Door to Door period 60 months

Moratorium period 6 months

Repayment Period 54 months

DEPRECIATION SCHEDULE

Description

Machinery/Equipment

Total

15.00%

Opening Balance(Year 1) 0.00 0.00

Addition 6.84 6.84

6.84 6.84

Less : Depreciation 1.03 1.03

WDV at the end of Year 1 5.81 5.81

Addition 0.00 0.00

5.81 5.81

Less : Depreciation 0.87 0.87

WDV at the end of Year 2 4.94 4.94

Addition 0.00 0.00

4.94 4.94

Less : Depreciation 0.74 0.74

WDV at the end of Year 3 4.20 4.20

Addition 0.00 0.00

4.20 4.20

Less : Depreciation 0.63 0.63

WDV at the end of Year 4 3.57 3.57

Addition 0.00 0.00

3.57 3.57

Less : Depreciation 0.54 0.54

WDV at the end of Year 5 3.03 3.03

DEBT SERVICE COVERAGE RATIO

Particulars

I II III IV V

NET PROFIT

0.80 1.26 1.67 2.51 3.57

Add : Depreciation

1.03 0.87 0.74 0.63 0.54

CASH ACCRUALS

1.83 2.13 2.41 3.14 4.11

ADD: INTEREST ON LOAN

0.67 0.55 0.40 0.24 0.09

TOTAL (A) 2.49 2.67 2.81 3.38 4.20

REPAYMENT OBLIGATIONS

REPAYMENT OF LOAN

0.68 1.37 1.37 1.37 1.37

INTT. ON LOAN

0.67 0.55 0.40 0.24 0.09

TOTAL (B) 1.35 1.91 1.76 1.61 1.46

D.S.C.R.(A/B)

1.84 1.40 1.59 2.10 2.87

AVG. D.S.C.R.

1.92

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reflect the views of the industry which are drawn from various research material

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