Food cart business over corporate job? Khadak Singh Da Dhaba CEO shares ₹75,000 + salary warning, risks and rewards

Khadak Singh Da Dhaba CEO Kawaljeet Singh has warned corporate employees against hastily jumping into a food cart business, especially those earning ₹75,000 or more per month. On the social media platform X, Singh argued that while the allure of a food cart may seem appealing, the reality can be quite different. He listed several pros and cons for those considering the switch.

One key advantage is the relatively low startup cost, as a food cart can be launched with less investment than a traditional restaurant or shop. Additionally, the business does not require extensive prior knowledge of running a business. However, Singh also pointed out that a suitable location can help mitigate many challenges by drawing in a consistent customer base.

The profit margin for a food cart can range from 10-35% of sales, and family members can assist in reducing labor expenses. Lower compliance costs and the ability to adjust pricing to cater to the mass market are other potential benefits. Flexibility is another advantage, as a cart can be moved if a location proves unsuccessful.

Unlike businesses that rely heavily on online delivery platforms, cart owners can avoid commissions and marketing costs, retaining higher retail margins. However, Singh cautioned that the low entry barrier could lead to market saturation and the need for significant personal time. He noted that a food cart often involves a twelve-hour workday, even if it appears like a five- or six-hour evening job.

The business is also vulnerable to weather conditions, regulatory uncertainty, and dependence on local authorities. Additionally, there is a risk of losing the cart's location due to poor rental agreements. Singh advised entrepreneurs to have sufficient working capital to withstand at least three to four months of potential losses.

He also highlighted that sales and profits are not guaranteed, even with full-time work. Another significant factor to consider is the social perception of the food cart business. Singh stated that such businesses are unlikely to provide the same level of white-collar respect as a corporate job. He suggested that individuals earning ₹75,000 per month should reconsider entering the cart business.