Over the past few years, the food truck business has become so popular that it’s quite the trend now in some cities.
If you are looking for a low-investment small business idea and have a passion for food, a food truck business could just be the answer.
Though small in scale compared to a full-fledged restaurant, the steps and preparations you need to accomplish are equally important.
If you feel you are the next successful food truck owner in your area but don’t know how and where to start, you’ve come to the right place!
In this article, we have listed 8 crucial steps that all future food truck business owners should take.
Towards the end of this article I’ll answer some of the most frequently asked questions on how to start a Food Truck Business…
According to Restaurant MBA, the failure rate of food truck operations in three years is going to be at 60%. The success and failure of a food truck business largely depends on how much effort you’ve put into planning.
When you are starting a food truck business, it is critical to ensure that you are filling a gap in the market or meeting a need.
Finding the location for your food truck is an important aspect of the planning process. You need to be familiar with local rules and regulations governing food truck parking, particularly on busy streets, to determine what is and isn’t permissible.
Get a sense of what cuisines are common in your area once you have an idea of the potential locations for your food truck. You wouldn’t want to be the third food truck that offers falafel, for example.
Choose a food idea that is not being offered by any other food trucks in the community, but you should also be mindful that it’s also something that would appeal to a wide range of people.
After you’ve identified the cuisines and spaces that are available in the area, narrowing down your food truck concept and name would be a lot easier. While you should think about consumer demand, you should also consider something that reflects your own interests and experiences.
Among the most popular food truck concepts are:
The next thing to consider if you want to know how to start a food truck business is to come up with a catchy name.
Our guide on naming a business provides a complete perspective, but here are some suggestions for naming your food truck:
Your business logo should represent the concept and name that you’ve decided for your food truck.
You need to have something that conjures high-quality food while still being interesting enough to compete with other food trucks.
Your logo will also appear on menus, business cards, social media, and in all of your marketing. Your business logo and colors should easily tell what your food truck is selling.
Your food truck, like any other business, will require a well-prepared business plan if it should thrive. Your business plan formalizes your idea and necessitates a financial strategy that you need to map out.
Your food truck business plan lays the groundwork for how you want your company to start, function, and develop. The following sections should be included in your food truck business plan:
Provide a description of the food truck industry in your area, including its current state and future prospects, as well as your concept, theme, and other markets and industries that may have a direct influence on your business.
Identify and evaluate market trends in the food truck industry, your target market, and competitors. Is there, for example, a food truck in your location serving the same type of cuisine, or a regular restaurant with a similar target client base?
Organization and management:
Explain your business strategy, including standard operating procedures (SOPs), staffing, and the roles and duties of each major partner and employee.
Provide a detailed account of your menu, ingredients, and methods, as well as the cost of the food preparation and the price you want to charge for it.
Describe your marketing strategy for your food truck business. Word-of-mouth, influencer marketing, and social media marketing are all important marketing avenues for food trucks.
Funding request and proposal:
Declare how much money you need to launch your food truck and how you intend to get it. If you’re looking for a business loan, make it clear how much money you need.
Make a list of your expected costs, earnings, and losses for the first three to five years.
Take note that one of the important steps you also need to accomplish is to open a business bank account for your food truck.
Depending on where you live, food truck licenses and permits will range from $100 to $500. It will require at least two types of licenses and permits. The first is your business license, and the second is your food service permit.
But additional permits may be required by some states. California, for example, needs the following:
Different cities use different standards for issuing food service permits, so the best way to know for sure is to go online and contact your local government, specifically the local health department, to obtain all of the required information on regulations.
Here are some pointers to ensure that you have the right spots to park your food truck:
At times, a commercial kitchen or commissary may be required for your food preparation depending on your state and local guidelines.
To find one, you could do your own research online or reach out the food truck community in your area for their recommendations.
It could be any of the following: brick-and-mortar restaurant, catering kitchen, or a designated commissary. This space will be used mainly for your food preparation and the disposal of dirty water.
A food truck business can set you back between $40k to $200k, depending on the following:
A second-hand food truck will cost a lot less than a brand new, customized one.
The table below, based on data from mobile-cuisine.com, gives you a rough estimate of the itemized costs involved in starting a food truck business.
The following are the food truck startup items and their corresponding approximate costs:
The majority of aspiring food truck owners cannot afford the start-up costs involved in starting a food truck business.
Hence, business financing often is the route they take to achieve this. A business plan is one of the first important things that most lenders would ask from you, including the amount of loan you wish to borrow, and of course, your credit history.
Below are some financing options that you can consider:
The best way to present your food is with a menu board mounted on the side of your truck. The layout and style should be consistent with your brand and theme. The most essential element, though, is that your food board is highly readable and engaging.
Here are some pointers to consider while creating a menu board for your food truck:
Food trucks can range from $3,250 for a used trailer to $200,000 for a brand new one. This pricing covers the cost of upgrading and wrapping, and accounts for various truck size requirements.
Investing in a high-quality food truck from the start reduces your chances of incurring repair costs later on. Search for a local food truck maker to guarantee that all of your requirements are accomplished. Once you have secured this part, this will save you a lot of money in the long term.
Check that your truck is equipped with code-compliant equipment, such as:
When buying a second-hand food truck, you can look for an individual vendor on Craiglist or eBay to buy one. Alternatively, you can check out directory sites dedicated for food trucks.
A secondhand truck is usually already fully equipped for approximately $50,000, however you will need to do some exterior repainting and interior renovation to complement your food truck business concept.
You may also buy a new food truck from a manufacturer, such as Prestige Food Trucks or Cruising Kitchens.
They can create a bespoke food truck based on your preferences. Brand new, customized food trucks will set you back between $100k and $200k to build.
You would need five types of insurance to get a comprehensive food truck insurance coverage. Here’s a rundown of the insurance you’ll need along with an estimate of the costs:
Some of the things that might impact your insurance costs are as follows:
Apart from the cooking appliances such as ovens, grills, or cooktops you will have to put inside your food truck, a few more items still need to be installed.
Details may differ based on your food truck concept, however all food trucks will need a generator which is required to power your truck. Pick a generator that is easy to transport, quiet, and efficient.
Once you’re ready with your truck and you’ve decided on a location, the next step in launching a food truck company is to promote it.
A good food truck marketing plan combines online and conventional marketing tactics, such as social media marketing, sending fliers, vending at local events, and developing a website.
Leveraging Facebook and Instagram is an excellent approach to attract potential customers. With billions of social media users out there, it’s a no-brainer. In addition, Instagram is a great platform to show off images of your food.
Do regular posts to maximize impact, and make use of local hashtags so that people can find your food truck faster. Also, mention your hours and locations so that people may easily locate you. If you take orders over the phone or online, include that information in your social network bio too.
Your Instagram account of your food truck should include your contact details, location, as well as good quality photos of your food.
It may take some time for a sufficient number of customers to find your food truck before your business begins earning a consistent profit. Mail postcards providing a promo or a free special that could attract interested and hungry visitors.
Festivals are an excellent opportunity to attract new customers and learn from other food truck entrepreneurs.
The majority of towns and cities host outdoor activities such as fairs and farmers’ markets, especially during the spring and summer months.
Engaging in these events is a smart move to raise awareness about your food truck while also earning extra.
A website is a must-have for any business. It informs prospective customers about who you are, what type of food you serve, and where they can locate your truck. Your website is also an excellent platform for displaying your event calendar.
Here are some pointers to make your business launch go as smoothly as possible.
A lot of food truck businesses augment their revenues by allowing customers to rent their trucks for special occasions such as weddings and workers appreciation days.
People on the go will appreciate if you accept orders online, whether it’s through your website or over SMS. This would make their overall experience of your food truck enjoyable and convenient.
Yes, You can!
There’s a lot that comes along with starting a food truck business that many people struggle with.
Now, don’t get me wrong…
You can certainly make money with a food truck, but if you’re gonna put in the amount of grueling work to do this business (which, trust me, isn’t easy), you might as well bring in some REAL money while you’re learning the ropes.
The program that helped skyrocket my online business to over $40,000+ per month is so simple that making money really does become second nature.
The easiest way to do this is to employ a designer. Once you’ve got a concept, seek for a designer to create your work.
The cost for a simple food truck wrap design is about $500. Always be mindful of your brand, ensuring that your truck design and logo represent who and what you are.
Clearly relay your expectations and objectives, set a timeframe, and put everything on paper.
With your food truck concept, your goal should be something that sets you apart from your competitors but also has a widespread appeal. Some of the common options are:
Food trucks could potentially make a lot of money. According to Profitable Venture, it is not unusual for successful food trucks in big metropolitan areas to generate $20,000 to $50,000 in monthly sales.
In smaller, more mid-sized cities, food trucks are likely to earn much less, ranging from $5,000 to $16,000 monthly.
If you’ve ever wondered how to start a food truck business, it’s a rewarding but time-consuming endeavor with a lot of potential for development and profit.
The food truck business is tough but ultimately profitable if you put in the effort to develop a thorough business plan that includes market research and a strong marketing strategy.
Our review team has come across a program in the real estate industry that is next level!
Although it’s not real estate in the traditional sense, it’s all digital.
Although starting a food truck business sounds like a lot of fun, the last thing you want to do is jump from one job to another job!
With digital real estate, you have the opportunity to completely walk away from your current 9-5 grind!
And it’s a hell of a lot cheaper!
Sound too good to be true?
Of course it does!
But it isn’t…in fact, business owners wish they had this skill!
What exactly is the skill?
Well, basically you are acting as a conduit for small business to increase their bottom line.
What I mean is…
You are helping these businesses grow!
All you have to do is build and rank a website and forward certain jobs off to a business owner in town… you could even email it to them!
This works for literally any service based business… ie: tree service, plumbing, towing, etc.
Simple, after you forward the jobs off to a business owner and he closes the deal, you simply ask to make the deal beneficial for him AND you.
A fair price to charge per lead, depending on the industry is 10-20%…let’s just use the tree service industry for example and go by worst case scenario.
Let’s say you build and rank the site and only 20 jobs a month come in. The average tree service job is anywhere from $500-$2000!
That means at bare minimum you have an asset worth $1000 a month!
See why they call it digital real estate now?
That’s a rent payment.
The great thing is how easy it is to scale. You don’t have to answer the phone…all you have to do is get the phone to ring.
Truly passive income!
The training program takes making money online to a whole other level. The owner of the program walks you through how to build and rank a site hand in hand, with the occasional voice over when he is sharing his screen.
You will learn the importance of keywords, website name, how to send call notifications via email, backlinking, etc.
Once the training program is completed you will also have access to a Facebook group where you can ask questions and be in a community with others on the same journey as you.
Digital real estate allows you to have passive income with most of your day being spent OUTSIDE of the brick and mortar landscape… even if that landscape is on 4 wheels.
Now, I know you probably have tons of questions…