The food truck trend represents one of the most exciting developments in the culinary industry. These compact dining establishments bring a variety of enticing flavors to locations in which such cuisine might not otherwise be available. Consumers benefit from convenient access to numerous culinary styles, while restaurant owners are able to expand business flexibility and minimize the costs associated with traditional brick-and-mortar locations.
With so many advantages available for both customers and owners, it’s easy to see why food trucks are quickly taking over the casual dining market. As of 2020, IBISWorld statistics revealed a total of over 25,000 food truck businesses in the United States, as well as an astounding market size of $1.1 billion.
Clearly, opportunity abounds in the rapidly growing food truck industry. It’s easy to see why so many aspiring entrepreneurs are jumping in with no hesitation. Some, however, fail to realize that the process of opening and maintaining a successful food truck business can prove surprisingly arduous. They are starting a food truck business without really understanding how to keep it profitable. From compliance to developing a marketing plan for your food truck, challenges abound.
Thorough preparation is essential to ensure that you can handle the unique complications of this promising, but sometimes frustrating culinary niche. As you move forward with your big plans to open a food truck, be sure to lock down the following essentials:
FOOD TRUCK ENTREPRENEURSHIP REQUIRES A CONCEPT
Generic won’t cut it in the competitive food truck industry. The most successful businesses boast memorable concepts that get customers talking. This is essential not only for marketing purposes but also for the sake of streamlining your menu. Limited to the space within your truck, and, perhaps, a supplementary location for food prep and storage, you’ll only be able to produce and serve a few menu items.
As you determine your concept, consider current opportunities and areas of need within your region. What do locals crave? Are they able to satisfy those cravings in a convenient and affordable manner? Your core concept doesn’t need to be revolutionary, but it should get customers excited.
NECESSARY PERMITS AND LICENSES
As with any restaurant, proper licensure is critical if you intend to run your food truck on an above-board basis. This process can differ dramatically from one state to the next, as each region holds its own unique laws regarding food truck operation. Not sure where to turn for information? Your local health department may be able to help.
If you’re really serious about maintaining full compliance, it may be worthwhile to hire a lawyer or business consultant to guide you through the essentials. In addition to helping you score the necessary licenses or permits, this advisor will enlighten you on local rules and regulations you might otherwise have glossed over. Yes, such guidance requires a significant investment—but it could pay dividends in terms of compliance, profitability, and sheer peace of mind.
A VEHICLE—AND ACCOMPANYING EQUIPMENT
For obvious reasons, your vehicle is integral to your success as a food truck operator. Your truck serves many functions: transportation, preparation, sales, and marketing. Handling all that within such a small space may seem intimidating, but it’s possible if you equip yourself with the right tools and layout.
While some food truck operators repurpose vehicles on their own, many rely on dedicated designers to ensure maximum safety and efficiency. Either way, you’ll inevitably find yourself facing the following considerations:
- Whether all meals can be prepared onsite or will require supplementary prep work at an additional location.
- Weighing the storage space of a large food truck against the greater mobility of a smaller design.
- If a food trailer will be needed for hauling essential ingredients and supplies.
- Scalability concerns if you eventually intend to expand your menu or serve a greater volume of customers.
- Which vendors will you turn to for key ingredients—and how will you access these essentials while dealing with a constantly evolving schedule? Do you have a plan for additional vendors/alternative ingredients when there are supply chain logistics challenges?
- Safety concerns, such as the number of seatbelts, ventilation, refrigeration, and the complications of simultaneously handling food and money.
A LOCATION PLAN
Contrary to popular opinion, food trucks don’t just pull over randomly and serve delighted customers. Each location is carefully mapped out and vetted to ensure not only marketability, but also compliance with local regulations.
Some food trucks rely on community events such as annual festivals. Many people attend these with the sole intention of exploring food truck offerings. Other food truck operators work with public and private facilities to craft regular schedules. For example, a food truck may be permitted to pull up to a specific block at lunchtime before heading elsewhere for the dinner shift.
Increasingly, food trucks partner with breweries which, in their eagerness to avoid the complications of serving both alcohol and meals, may book a rotating schedule of food truck vendors. This allows them to cater to visitors with a desire for culinary novelty.
No matter your preferred location or schedule, you’ll need to determine whether you can secure a high enough volume of customers at each spot to warrant the effort of visiting. This requires extensive market analysis, as well as detailed reporting after each shift to determine the ultimate return on investment.
How will you get the word out about your food truck and its upcoming schedule? Word of mouth helps, of course, but that alone won’t deliver a high enough volume of customers—especially if your locations vary considerably from one day to the next.
Many food trucks depend on social media marketing. Facebook and Instagram, in particular, encourage strong relationships with satisfied customers. These platforms also provide valuable access to scheduling information. A dedicated website is just as essential, especially as you court visitors via traditional search engines.
Are you interested in opening your own food truck? Learn business planning, management strategies, and marketing techniques when you earn your bachelor’s degree in Food & Beverage Entrepreneurship from JWU. For more information about this online degree program, complete the Request Info form, call 855-JWU-1881, or email [email protected].