Highlights
- Australia’s restaurants, cafes face financial downturns due to repeated COVID lockdowns
- Food trucks emerge as alternative business model in food industry with success
- Location and food-type are of utmost importance before starting food truck business, say experts
Dilpreet Singh has been serving Indian food from '2 Massi De Munde', his food truck in Clayton in southeast Melbourne since last year.
The 38-year-old Mr Singh has a passion for the food business. He had once dreamt of operating an Indian restaurant in Australia. But he had to change his mind last year due to the consistent lockdowns in Melbourne, which also led him to settle for a relatively lower investment in a food truck.
“It turned out to be a good decision. Although it has been very challenging to operate during the lockdowns, eventually it proved to be a profitable business given the negative trends in the food industry,” he tells SBS Punjabi.
Following his new business success, he is now expanding his operations across Melbourne’s northern and western suburbs.
Dilpreet Singh operates food truck '2 Massi De Munde' in Melbourne's southeast. Source: Supplied by Mr Singh
Unlike brick-and-mortar restaurant setups, mobile food units do not need to serve a wide variety of food. Their focus remains on relatively dry dishes that their customers can conveniently eat while sitting in their car or standing by the food truck.
Mr Singh says his business has a huge demand for fish pakoras, chicken and cheese tikka, lamb cutlets, chhole-bhature, gol-gappe, stuffed kulchas and naans.
Food truck business gains momentum during pandemic
Indian food trucks are famous for their 'street foods' including chole bhature, fisha pakora, chicken and paneer tikka. Source: Supplied
Food industry experts claim that the hospitality sector was severely impacted during the pandemic-led lockdowns, with many restaurants and cafes either closing down or on the verge of collapse.
Although the pandemic is said to be under control in Australia, this industry is still sensing a negative business sentiment regarding the fears of its recurrence.
Navnish Bansal, a hospitality industry expert from Brisbane, says the loss in customer base, long-term leases or the inability to pay rent and the closure of international borders have hit Australia’s food sector hard.
“This uncertainty has resulted in a new trend of mobile food businesses or ‘meals on wheels’. Many people who lost their jobs or businesses have used food vans or trucks as a possible solution, and in some cases, even as a successful business model,” he tells SBS Punjabi.
From survival to success
A representative image of a food van worker serving his customers. Source: Pexels
Mr Bansal says this new trend in the food industry seems to have followed a similar change in the United States where the industry also adapted to container-type food venues.
“The main advantage is that you can easily cut expenses on rent or leases, running costs and reduce the number of workers and their salaries,” he adds.
He claims that during the last year, considering there was “nothing to lose,” many people in the industry decided to try their luck with food trucks which resulted in hundreds of new businesses opening up in this sector.
“This is definitely a plus side for small business owners. They can work with the peace of mind given that if there is loss of work, it will still be tolerable, whereas losses in restaurants sometimes may force you to go bankrupt,” he explains.
Meanwhile, Mr Singh adds that outdoor food venues like vans and trucks offer people more convenience and relatively better social distancing and safety measures, making this model even more successful in the current circumstances.
Points to ponder before starting a food truck business
A representative image of a food truck worker. Source: Pexels
Industry experts and food vendors say there are two important things to consider when starting a food truck business – location and food type.
Mr Singh said that following common principle of “go where people go”, choosing a place to do business becomes very important.
“The rent of the place where the truck or van is to be parked, additional parking for cars, road safety and visibility from the main road, traffic and easy access are a few things that you must take into account before venturing into this business," he advises.
“In addition, you need to consider your budget, food quality control and the training of your staff. A typical food van or truck can cost anywhere from $50,000 to $100,000, depending upon its condition and the facilities you choose,” he adds.
Gill Ealwalia, who operates a food truck manufacturing company in Melbourne, says that when buying a new vehicle, food vendors must make sure that the vehicle and its equipment are approved or certified by the relevant safety authorities.
Inside view of a newly assembled food truck. Source: Supplied by Gill Ealwalia
“You don’t want to take this decision in a rush because safety comes first. In the last year, we’ve built more than 50 food vans and trucks and meeting this constant demand has been very challenging due to the recent boom in the market,” he tells SBS Punjabi.
Dilbir Singh Gulshan, who runs a food van business in the regional town of Tamworth, NSW, advises caution when buying a vehicle for this business.
Dilbir Singh Gulshan and Pawan Kumar are the proud founders of Burger Bulls' food truck, Tamworth, NSW. Source: Supplied by Mr Gulshan
“It is important that you do your groundwork for the vehicle requirements and market analysis,” he says.
Mr Gulshan adds that his business is no longer in survival mode, rather it is being operated as per a new successful business model.
“There are fewer chances of failure provided you have experienced and well-trained staff, quality food with a strong focus on customer care,” he adds.
For more details listen to this podcast in Punjabi:
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