Business Plan > Start Business > Food Truck Business
Food Truck Business
Guide to Starting a Food Truck Business in Malaysia
Working Capital for Food Truck Businesses in Malaysia
A More Affordable Option
Unlike traditional brick-and-mortar restaurants, food trucks offer a more economical way to start a food business. The initial investment is significantly lower, as you primarily need a vehicle and a suitable location. Estimates suggest that an average of RM15,000 to RM20,000 is sufficient to launch a small-scale food truck business. This eliminates the substantial costs associated with property, renovation, and rent that are common in restaurant setups.
Funding Options
The relatively low startup costs make it easier for entrepreneurs to fund their food truck businesses. Many individuals can start with their own savings or borrowings from family and friends. Alternatively, there are various financing options available, including:
- Banking Loans: Entrepreneurs can explore loans from banks, often with favorable terms for small businesses.
- Government Financing Schemes: The Malaysian government offers various financing schemes and grants to support small businesses, including food trucks.
By carefully considering these funding options, entrepreneurs can secure the necessary working capital to launch and grow their food truck business.
Table 1: Breakdown of costs to start a food truck business
| ITEM | COST |
|---|---|
| Register with SSM (Compulsory) | RM 100 |
| Register with Bank (Compulsory) | RM 200 |
| Good Driving License (GDL) (Compulsory) | RM 500 |
| Local Business Permit from Local Authorities | RM 500 / YEAR |
| Working Capital | RM 3,000 (minimum) |
| Foodtruck Deposit (minimum 10% of total price, e.g. RM 55,000) | RM 5,500 |
| Foodtruck Installment | RM 600 / Month |
| Signboards and Bunting | RM 300 |
| Foodtruck Sticker (basic) | RM 500 |
| Equipment (kitchen, gas, freezer, etc.) | RM 4000 |
| Typhoid Immunisation Injection (Compulsory) | RM 90 |
| Food Serving Course (Compulsory) | RM 100 – 200 |
| Preparation of Raw Material | RM 4,000 – RM 8,000 |
| Maintenance | RM 300 |
Choosing and Equipping Your Food Truck
Vehicle Types and Considerations
There’s a wide variety of vehicles that can be converted into food trucks, from lorries and buses to smaller vans, wagons, cars, and even motorbikes. The ideal choice depends on your budget, business type, and desired capacity. Different vehicles offer varying qualities and price points.
Truck Design and Planning
When designing your food truck, carefully consider your business requirements. Factor in the need for equipment like freezers, gas burners, and ample space for food preparation, cooking, serving, and ordering.
Truck Body Material
Choose between steel or fiber for your truck body. Fiber is generally recommended for its durability and ease of cleaning. Keep a close eye on the refurbishment process to ensure it aligns with your design.
Interior and Exterior Design
The interior design can be customized based on your budget, but always prioritize safety and practicality. The exterior design should incorporate elements that promote your products. Consider using graphics, wraps, stickers, or even marker pens to create a visually appealing and memorable food truck.
Power Supply
While generators can be used for electricity, it’s often more practical to use cooking gas for cooking, especially for extended periods. Generators can be used for lamps, machines, freezers, coffee makers, deep fryers, and ovens.
Necessary Approvals
Ensure you obtain the required approvals from the Jabatan Pengangkutan Jalan (JPJ) and Pusat Pemeriksaan Kenderaan Berkomputer (PUSPAKOM) to operate your food truck legally. This process may take 3-4 months.
Additionally, secure the necessary licenses and permits from local authorities in the area where you plan to operate your business.
The type of food you offer plays a crucial role in attracting customers and determining the interior design and equipment needs of your food truck. To stand out from the competition, avoid offering identical products to nearby food trucks.
Customers evaluate food truck menus based on various factors:
Taste: The quality and flavor of the food are paramount.
Price: Ensure your pricing is competitive and reflects the value you offer.
Quantity: Offer generous portions to satisfy customers.
Service Time: Minimize wait times to keep customers happy.
Publicity: Effective marketing and promotion can attract customers.
Uniqueness: A distinctive and memorable menu can set your food truck apart.
Raw Material Management
When sourcing raw materials, consider both dry and fresh products. Pay close attention to the cost and shelf life, especially for perishable items. Ensure that your products are not only fresh but also in good condition by monitoring expiration dates.
Essential Utensils
In addition to raw materials, you’ll need various utensils for your food truck business. These include:
- Forks and spoons
- Food containers
- Straws
- Tissues
- Plastic bags
Store these items in a well-ventilated area to prevent pest infestation.
Staffing and Training
A typical food truck requires three operators:
- Order and Payment: Handles customer interactions and transactions.
- Food Preparation: Prepares and cooks the food.
- Packaging: Packages and serves the food.
As a food business owner, it’s essential to ensure that you and your staff are well-versed in food safety practices. This includes attending relevant training programs and obtaining vaccinations for hepatitis and typhoid.
The Importance of Trademarks
Trademarks serve as exclusive rights and legal evidence for entrepreneurs. By registering a trademark, you gain the exclusive right to use the mark for trading purposes. This protection enables you to take legal action against other entrepreneurs who infringe upon your trademark by using it without your consent.
Under Malaysia’s Trademark Law, trademark infringement is a serious offense that can result in legal consequences for the infringer.