Food trucks are gaining popularity, the new wave of food trucks comes with a list of improvements and changes, check it out in this article where we show you how to get in on this growing market.
Food trucks are heavily gaining interest in Malaysia and are about to revolutionise the culinary scene here. At the moment, Selangor has about 130 operating food trucks and the number is expected to double by 2018, as pointed out by Amirudin Shari, Selangor State Executive Councillor for Youth Development, Sports, Cultural and Entrepreneurship Development. This statement is also supported by statista.com, who estimates a strong growth within the food and beverages market of Malaysia in general. However, the food truck business is not new to Malaysia as selling food from trucks has been around for ages. Think about pisang goreng and lok lok. What is new though, is the improved quality of the vehicles, the equipment, as well as the added diversity of food options.
See also: Inside the Food Truck Business
Food Truck Guideline published by Government
With growing publicity, the government has put into place some rules and regulations in order to ensure quality and an organised structure within the food truck scene, which was reported by The Malay Mail.
In order to enter the market, you need to first buy and set up your food truck. We attempt to provide a breakdown of costs to help you get an idea of the financial requirements before you venture on your culinary trail.
Estimation of Costs
Malaysian Food Truck, which is a support group on Facebook for entrepreneurs who are looking to start their own food truck, or are already in the food truck business, estimate the costs for the first year as follows.
Permit fees
In order to get started, you would need to obtain a SSM Company registration (RM100) as well as a GDL License (RM500). Additionally, you need to apply for a local business permit from the local council in which you want to operate your food truck. This permit costs RM1,080 which you need to renew every 6 months.
Operating fees
In order to attract your customers and offer them a positive experience, you would also need to prepare nice looking menus and buntings to draw in the crowd. This would cost you an estimate of RM300.
In terms of raw materials for operating the business, it can be estimated to stack up to RM20,250 per month based on the assumption that your costs per servings look something like this:
((RM4 for food + RM0.50 for packaging) x 150 servings + 30 days)
Additionally, it could be useful to keep around RM3,000 in your backhand for any emergencies, plus RM300 per month for maintenance.
The Food Truck
A fully equipped food truck can cost, according to Star2.com, between RM100,000 and RM150,000. After having set up your truck, it needs to pass the Computerised Vehicle Inspection Centre.
Revenue expectations
In terms of revenue, you could expect to earn up to RM45,000 per month according to cilisos.my.
On an average price per meal of RM10, this would mean 4500 single servings per month or 150 per day (30 days month). However, there are not only single servings but also occasional catering events to factor in. According to Star2.com, for small events, the estimated revenue you can earn is between RM1,000 – RM1,500 per event and for large events up to RM8,000 per event.
Potential Costs and Revenues at A Glance
Assuming your financing amount would be RM125,900 with an interest rate of 7% and a duration of 5 years.
Prosperous Outlook for Food Truckers
In summary, it can be emphasised that the food truck business seems like a good move as there is a very positive outlook for the market. Several market observants state that food trucks are adding a lot of positive diversity to the culinary scene in general. Therefore, food trucks could be a major force in growing the Malaysian food and beverages sector.
If you could play a role in that process, this could mean a meaningful financial reward for you. Is there a downside to running a food truck? Perhaps more so for restaurant owners who may lose some customers to the food truck scene. However, the positive effects outweigh the negatives, and we all should be looking forward to all the food trucks that are coming in the future.
As we have seen, it is possible to earn a decent amount per month from a food truck business, but hard work is definitely required and the ability to cater for small to large scale events can also increase your revenue stream. Never forget to be cautious, when offers seem too good to be true. Always consider second opinions and don’t forget to find the best financing for your needs with the help of our free comparison tool for business loans.
See also: Personal Loans and Credit Cards: A Powerful Duo For Your Business
About the writer
Dennis is a Guest Writer at CompareHero.my. He is curious about trying new things, enjoys to discover the world and is interested in financial topics.
CompareHero.my strives to empower Malaysians with financial literacy and the tools to make better financial decisions in life. Find and compare the best credit cards and personal loans on CompareHero.my today.
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