There has been a constant rise in youth spending and the requirement of food on the go, which makes owning a food truck very popular around the world. The future of food trucks looks very bright too with their projected revenue looking to increase by around 4% in the next five years. This might not seem like a lot, but over time it will give you a nice boost to your finances with the industry total looking to climb to $1.7 billion.
Simply owning a truck and selling food won’t always result in success though, as you will need a smart marketing strategy and location choice to get the most out of your business. When compared to owning a restaurant, while you have to focus on a lot of the same marketing strategies, there’s less risk involved due to how much more affordable it is.
This guide will look at starting a food truck business and why it’s the smartest way to start a restaurant, rather than owning a physical building. Continue reading to find out more.
Benefits of Running a Food Truck
Low Initial Investment
Having a food truck instead of a restaurant gives you a low first cost. The only main cost is buying your own truck, but this isn’t essential as you can always rent a food truck instead of purchasing one. You will also have to buy all the equipment to go inside your truck, so you can properly cook the food before serving it to the customers. This includes grillers, heat lamps and doner kebab skewers needed, depending on the type of food you’re cooking.
This is much more affordable than purchasing a building, all the cooking equipment and the tables and chairs for all your customers to sit on. All of these costs can be one of the main reasons why restaurants aren’t very profitable for the first few years.
Low Operational Cost
Owning a restaurant requires hiring a wide range of staff including cooks, servers and cleaners, while paying property taxes if you are the owner of your property. This means that there’ll be far more outgoings, which could result in fewer profits overall. Operational costs of a food truck are limited to food, supplies and gas so you don’t need to focus on paying high levels of staff.
Maintaining the appearance of the restaurant will also take a lot more work and finances than keeping your truck clean. The decor needs to be perfect, and there can also be fixes needed for pipes or the ceiling after a while. Food trucks require far less maintenance than this.
Improved Customer Potential
When you’re stuck in one location, you are limiting your customer base as you can’t reach those in other locations. This makes owning a building for your restaurant far less effective than having a food truck, which allows you to change your location day to day so you can access areas that require food truck services like festivals or social events.
If you don’t have a truck license, you can do training over the course of a few days with companies like Lifft Group. After this, you can drive your food truck from one location to another to maximise your customer potential and feed as many people as you can along the way.
Brand Expandability
Building a brand with a food truck is a smart first move, because as your truck moves, it creates excitement that can drive customers to seek you out. This mobility allows you to test your concept and build a dedicated fanbase in different locations, all before you commit to expanding your business further.
When people chase your truck, take photos of your food and follow your route on social media, you’re creating authentic hype. This has been proven by businesses like Spud Bros, who have grown from having one food truck to now having multiple physical locations across the UK.
Specialised Menu
Due to you having limited space on a food truck, you will be restricted to the amount of dishes you can serve. However, this can be a positive, as it means that you can refine your menu to focus on whatever specific type of dish you are interested in selling. You can get creative with this and think of dishes that will best resonate with a specific customer base, such as energy boosting foods.
While owning a regular restaurant allows you to cook more dishes, being spoiled for choice can lead to oversaturation and ridiculously large menus that can result in lower quality dishes. WIth food trucks, less is definitely more when it comes to menu choices.
Can You Park Anywhere with a Food Truck?
When it comes to legally selling your street food, public spaces fall into three main categories that determine whether you need permission:
- Licensed Streets: These areas are designated for trading, but you must secure a Street Trading License before you can park your food van there.
- Consent Streets: On these streets, vending is allowed, but you are required to obtain Street Trading Consent from the local authority before setting up shop.
- Prohibited Streets: Trading is never permitted in these areas. They are usually locations deemed unsafe or impractical for mobile vendors, such as busy main roads or intersections. This can be seen as a criminal offence, if you park there.
Final Thoughts
Purchasing or renting a food truck can be a great career choice, if you want to experience the restaurant ownership lifestyle while utilising the many benefits of on-the-go dining. You can have the freedom to choose your own locations on a daily basis and attract a new customer base that wasn’t previously possible.
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