“Food trucks make an average of $42,000 monthly.” That’s your cue to jump into the business right now. But not without the perfect strategy. The global food truck business is expected to reach $6.63 billion by 2028.
Yet, 60% of food truck businesses will fail within the first three years of opening.
Whether you want to serve piping hot pizzas at the city center or flavourful ice creams around the town, having the right food truck business plan can be the difference between success and failure.
Establishing a food truck business is less expensive than starting many small companies, but it is not a surefire path to reaching financial independence. To get into the food truck industry, you must put in a lot of effort, have a sound financial strategy, and be extra diligent.
Don’t worry, we have got you covered.
In this article, we will discuss the five must-haves you need in your food truck business plan to get a headstart:
Setting the budget must be your first priority. You cannot shoot arrows in the dark and expect a booming business. Your financial strategy in a food truck business plan must include the initial setup cost as well as the future costs of the business.
The food truck will evidently be the most expensive thing on your list. It will include the cost of the truck and the cost of setting up the mobile kitchen in the truck expense.
Next, the daily expenses will include the cost of goods as well as the operational costs. These may include fuel, maintenance, food wastage, and staff salary.
You’ll also want to decide on the marketing budget. Promoting a few posts on popular social media platforms like Facebook and Instagram will help you gain more traction. It will get people excited about your food truck and you can become the talk of the town even before you start rolling.
Also include the cost of technology you’ll need to run a successful food truck business. These may include a POS system or a pre-ordering system to ensure that you keep up with the digital generation.
“35,512!” That is the number of food truck businesses in the US in 2022. Evidently, the competition is huge. Therefore, it is important that you conduct market research before you jump into your truck and start selling.
Accurate and comprehensive information is the cornerstone of any successful food truck. It will arm you with a wealth of data about the consumers, competitors, and the industry in general. It will also enable you to assess the viability of your concept before investing time or money.
Just like most businesses, food businesses too, are centered around customers. Select a few great locations that you want to serve at and observe the demographics in that area. See what the customer demands are and whether your chosen menu will appeal to them.
You must also observe the time of the day when people in the area generally go looking for food. If you select a corporate area, lunches will be the busiest so it will be better to park your truck at that time to attract customers. The evenings will be appropriate to cater to recreation areas like a public park.
The licenses and permissions required to operate your food truck will be primarily determined by the state in which you live. However, you will need a company license and a food service permit at the very least. Your best option is to contact your local health board and determine exactly what you'll require.
And since food trucks cannot park everywhere, you should investigate any potential parking limitations. You can consult the local authorities to learn the local rules.
Getting a good food truck with all the cooking as well as serving amenities should be the next thing on your checklist. It must be versatile enough to help you work efficiently during rush hours.
Remember, your business will constantly depend on the mechanical integrity of your vehicle. So, make sure that you purchase an efficient vehicle that can withstand your rigorous routine. Some of the equipment that you can consider adding to your food truck are a countertop food warmer, refrigerator, and janitorial equipment.
Take good care of it and do regular maintenance to prevent mishaps. It will not only save you repair costs from regular breakdowns, but it will also ensure that your business keeps running without any hurdles.
Restricting your food truck business to physical orders, especially during an age when people rely heavily on online orders and delivery systems, might prove detrimental for you.
On the flip side, if you start taking online orders, it will double your sales. So, consider investing in a robust, feature-rich food truck ordering system so that customers don’t have to wait too long to get their food.
Restolabs is a versatile restaurant online ordering coupled QR code ordering system that will make your food truck a ‘customer magnet.’ People can easily place orders using their mobile phones or your website and get their food in just a few minutes without waiting in long queues.
The best part about it is that it comes with an integrated POS system so you can manage all your orders on a single software.
Food trucks are a terrific opportunity to test a restaurant concept, create a client base before opening a new restaurant, or even just make a stable, consistent income while being your own boss.
Although the food truck business takes a lot of work, it is bound to give you high returns in the long haul. The trick, however, is to create a good strategy through market research and stay dedicated to making things more convenient for your customers.
So, what are you waiting for?