With resurgent economies, people now have more purchasing power, and they have started to spend on more than just basic needs. Such economic changes have put a great impact on the service industry, particularly restaurants and other food businesses. Dinning out does not necessarily mean expensive restaurants or cafes. There is an ever-growing breed of street food lovers always looking for good quality food at fair prices, lining up at food trucks and food carts like never before.
If you are planning to make an investment in the food truck business or start a food truck of your own, you should really understand what you are getting into. Operating a food truck requires dedication and lots of hard work. It is not the kind of business where you will start raking in big profits in a month. You will need to stay committed. There will be times when a food truck business may start to feel like a no-win situation. If you persevere, the road to success could well be just around the corner.
It pays to be prepared before you start a venture. Some of the key factors which you must consider before starting a food truck business are briefly discussed here.
- Business Plan: Starting a business is never easy. Careful planning will take care of the biggest challenges. Develop a business plan that maps out your goals for your mobile food service business. Collect and organize all the important information about your proposed food truck business to share with prospective clients, investors, and licensing offices. This will help others to take your business proposal seriously and will also give you a concrete picture of the challenges that you will need to overcome.
- Menu and Specialty: One of the crucial things to think about before starting a food truck is your targeted consumer segment. Questions like what kind of food you would like to sell, to whom, and when are the fundamentals of your business. Analyse and consider the kind of food you think would attract customers and also think about your competitors. You may want to go for a food or beverage category that does not have much representation in your area. Of course, it is also important that you know how to cook what you plan to serve. A special signature touch helps but more popular food is a safer bet. Something unique will attract people, but if it is too niche, your patrons may lose interest later.
- Location: The next step is to select a preferred location along with other alternate routes and parking lots. Your options may be limited as many cities have designated areas for food trucks, particularly large ones. Even so, the locality is usually your choice to make. You must not encroach into a competitors’ space. You may also want to explore local tourist attractions, industrial complexes, construction sites, schools, and colleges, etc. Another option you could look into is to partner with a food truck that sells food that complement yours. A food truck that sells pastries is great next to a coffee trailer.
- Licensing: There are various legal formalities associated with food truck business. Just like any other vehicle you need to get insurance for your food truck as well. Besides, you also have to obtain the various permits and licenses for running a food truck business. The food service industry sets high standards to ensure quality and safety. A proper licensing process ensures the quality, safety, and hygiene for consumers. Food truck licensing procedures vary according to the state laws. You can gather the information from government websites. A large part of the application process is also completed online in most jurisdictions.
For many people, starting your own food truck business is a long-held dream coming true. A food truck business cannot be established spontaneously or overnight. You have to put a lot of effort and planning. Considering these factors will help you understand the opportunities and responsibilities of running and managing a successful food truck business.
About the Author:
Bo Pfromm is the owner of Van Demons Vans in Brisbane. He has a passion for helping people realise their dreams by helping them join the food van revolution. Call Bo or any of the Van Demons team on 1300 886 773 to get a quote on your custom built food truck.