Launch a Food Truck Business and Not a Brick and Mortar Restaurant – Here’s Why
Restaurants were among the companies that were struck the worst when, due to the COVID-19 epidemic, authorities forced the closure of enterprises and mandated a social distance between people. However, not all enterprises that provide food services were impacted in the same way: "food trucks" or Mobile Food Services, due to the nature of their operations, have greater leeway to continue to operate.
Food trucks are not the same as "coffee carts," which our parents and grandparents may have frequented while working on construction sites in the past. Even though there are restrictions on eating indoors due to the pandemic, many establishments now provide gourmet meals that may be delivered directly to residents' homes. This allows us to "eat out."
Companies in our towns that contribute local "taste" not just to our bigger urban counties but also to our smaller, more rural ones are supported by us when we frequent such businesses, which in turn allows that "flavor" to be spread over a greater portion of the United States.
It Is Possible for Food Trucks to Experiment with Their Location
Location is essential for restaurants; it can make or break a business. New restaurants have a failure rate of approximately sixty percent in the first year. And roughly 80 percent of them went out of business before their fifth year, with a bad location and expensive leases being two of the key reasons. As a result, whether you go to a food truck or a restaurant, you need to make an informed decision.
The good news is that food trucks are resistant to this issue since they are movable, and you can pick where your food truck will be parked according to your preferences. If you find that a certain area is not conducive to your company model's success, you can relocate to another place and attempt to replicate your success there.
In addition to having all of your necessary documentation at the ready when you are on the road, you will also be required to obtain permission from the local RWAs to park your food truck in upscale residential neighborhoods.
You may leverage the portability of food trucks as an additional selling point to attract potential clients. Because you operate a food truck, it will be much simpler and more convenient for you to participate in various events and food festivals so that you may expose your dishes to people who might become prospective clients. Altering your position tactically daily or weekly, depending on the increase and decrease of foot traffic in certain locations, is another option available to you.
Just keep in mind that you should select a place that is conveniently reachable (by automobiles and other vehicles) and has a significant amount of foot traffic.
In recent years, enterprises have been increasingly centering around food trucks.
In 2018, there were 5,970 food truck establishments, nearly double the amount from 2013, when there were 3,281.
In 2018, these companies reported an annual payroll total of 320.6 million dollars and employed 16,210 people.
Businesses that provide mobile food services fall under the North American Industry Classification System code 72233 and are found in all 50 states and the District of Columbia.
In 2018, the state with the most residents, California, had the most deaths (753), while South Dakota had the fewest deaths (11).
57% of the total population of the United States was accounted for by the top 10 states: California, Texas, Florida, New York, Oregon, Washington, Pennsylvania, Ohio, Colorado, and Virginia.
The food truck industry is worth an estimated one billion dollars.
Between 2012 and 2017, sales from food trucks climbed by 79%, going from $660.5 million to $1.2 billion in total revenue.
In 2017, the average sales for a food truck establishment were $226,291, and the average sales for a food truck employee were $86,212. These figures were compiled at the national level.
These figures are from the Economic Census of 2017, which compiles comprehensive data (including sales figures) for virtually all NAICS codes at the national, state, metro, county, and place levels. The geographical particulars change depending on the NAICS sector.
California led the pack in food truck sales in 2017, bringing in $276.1 million, followed by the state of Texas with $112.6 million and the state of Florida with $98.3 million.
Between 2012 and 2017, sales from food trucks increased by a combined total of $114.5 million, $82.5 million, and $57.8 million in these three states.
In terms of average sales ($392,136) per food truck operation, California ranked first in the nation. However, Vermont had the greatest average revenue ($157,400) for each person working in a food truck.
It takes less initial capital investment to start a food truck business.
Compared to a traditional restaurant, operating a food truck requires significantly less financial outlay, making it an attractive option for entrepreneurs interested in the restaurant industry. Suppose you run a food truck rather than a traditional restaurant. In that case, you save money on the initial setup that you can use toward other business endeavors such as advertising or menu development. This in and of itself is a significant competitive advantage. The single most significant expense is purchasing your vehicle, but if you get a used truck and invest in some new kitchen gear, you can have your food truck up and running for less than $52k.
Next, you will need to set out your truck with the appropriate equipment, including exhausts, grillers, heat lamps, and any other specialized apparatus that may be required for the food you sell.
It's hard to beat the value of a good meal from a food truck. For example, a successful food truck seller in Miami often averages between $25,000 and $30,000 in monthly earnings. The price of the most basic food truck is $50,000, which includes the additional costs for improvements such as additional equipment and furnishings.
The Costs Involved in Running a Food Truck Are Considerably Reduced
When you own a restaurant, you are required to make significant financial investments in various utilities, hire a large number of employees, such as chefs, cashiers, servers, kitchen managers, cleaners, and so on, and pay property tax if you own the real estate on which the restaurant is situated, or pay monthly rentals if the property is rented. As a result, you must control the expenses of your operations, particularly the hidden charges, which may be draining your restaurant of its financial resources.
On the other hand, the operating expenditures of a food truck are variable from month to month and are restricted to the cost of food, supplies, and gasoline. You don't need an entire staff; a small team will suffice, and most of your taxes will be significantly reduced.
The cost of completing necessary maintenance and repairs at a restaurant might quickly become prohibitive. No way to get around that owning brick-and-mortar real estate calls for constant care. Maintaining restaurant décor, furniture, electrical appliances, and other culinary equipment, as well as fixing leaking pipes or ceilings, among other things, requires a significant amount of time, energy, and financial investment.
On the other hand, mobile food businesses can perform well with only a small bit of maintenance and repair work over time.
Customers are attracted to food trucks in greater numbers.
Invest in a Food Truck to Keep Your Operations Affordable and Clean
Buying a food truck is a low-cost way to enter the competitive market of mobile food sales, both in terms of initial investment and ongoing expenses. It is unnecessary to pay hefty leasing fees or perform frequent and expensive maintenance on food trucks. Meals of five-star quality and deliciousness may be purchased at slightly reduced costs from food trucks, which are not offered elsewhere. They will provide dishes of the highest quality, cooked by skilled chefs utilizing sophisticated cooking equipment, directly to your home without increasing the prices.
Considering everything, operating out of a food truck is more sustainable, cost-effective, and adaptable. By converting your second restaurant site into a food truck, you will increase the likelihood of gaining more sales opportunities, visibility, traffic, and the size of your client base.
Modern food trucks can be customized to make your ambitions a reality. They are strong enough to withstand severe weather and fuel-efficient enough to keep your expenditures for gasoline at a minimum. They were developed to make your side hustle a success while keeping expenditures minimum and leaving a long-lasting impression on the people who may become your customers.
The variety of dishes available is the salt of life.
If someone has never eaten from a food truck before, they might believe that the only things they can get are hamburgers and hot dogs. This is the farthest thing from the truth possible. The vast majority of mobile food vendors are in no way comparable to the quick-service restaurants we visit much too frequently. Many of them can be considered to be rather unusual.
For example, Fork and Truck in Houston provide customers with a menu that features items such as chimichurri lamb, Cuban sandwiches, chicken beignets, and even duck banh mi. Crab rolls, New England clam chowder, and lobster bisque are some items found at Luke's Lobster truck in New York. What can we learn from this? Don't evaluate a vehicle based on one of its corners.
If this is the first time you have ever eaten at a food truck, you are doing yourself a disservice. The ambiance, choices, health ratings, and food are all superior to those found in traditional brick-and-mortar shops. If you happen to come across a food truck in the future, you should stop by. This may be the finest supper of the whole week.
The Nuts and Bolts of Mobile Food Vendors
Food trucks provide entrepreneurs access to a wider market since they can bring their wares directly to the consumer. A novice can improve their thoughts and boost their self-assurance by participating in this activity. A robust starting point has a smaller business model since errors have a much lower influence on that model. Some people may find the extensive range of possibilities and the significance of marketing and social media exhilarating. Still, it may be overwhelming for others, especially those who place a high value on predictability.
For such individuals, the location of a restaurant is responsible for sixty percent of its success. It can be a more consistent and dependable form of enterprise to manage. It is possible that the initial investment would be more, and the duration of the contracts would be extended.
Your existing skill set, available funds, and personal preferences should guide your decision on whether to launch a food truck or prepare your restaurant from the ground up. Planning, dedication, and having a crystal-clear picture of the end goal are all requirements for achieving success down either path.
After you have collected a realistic list of advantages and disadvantages, it is time to start researching the local environment and drafting a sound business strategy. You won't have to wait long until you can feed everyone.
Restaurants were among the companies that were struck the worst when, due to the COVID-19 epidemic, authorities forced the closure of enterprises and mandated a social distance between people. However, not all enterprises that provide food services were impacted in the same way: "food trucks" or Mobile Food Services, due to the nature of their operations, have greater leeway to continue to operate.
Food trucks are not the same as "coffee carts," which our parents and grandparents may have frequented while working on construction sites in the past. Even though there are restrictions on eating indoors due to the pandemic, many establishments now provide gourmet meals that may be delivered directly to residents' homes. This allows us to "eat out."
Companies in our towns that contribute local "taste" not just to our bigger urban counties but also to our smaller, more rural ones are supported by us when we frequent such businesses, which in turn allows that "flavor" to be spread over a greater portion of the United States.
It Is Possible for Food Trucks to Experiment with Their Location
Location is essential for restaurants; it can make or break a business. New restaurants have a failure rate of approximately sixty percent in the first year. And roughly 80 percent of them went out of business before their fifth year, with a bad location and expensive leases being two of the key reasons. As a result, whether you go to a food truck or a restaurant, you need to make an informed decision.
The good news is that food trucks are resistant to this issue since they are movable, and you can pick where your food truck will be parked according to your preferences. If you find that a certain area is not conducive to your company model's success, you can relocate to another place and attempt to replicate your success there.
In addition to having all of your necessary documentation at the ready when you are on the road, you will also be required to obtain permission from the local RWAs to park your food truck in upscale residential neighborhoods.
You may leverage the portability of food trucks as an additional selling point to attract potential clients. Because you operate a food truck, it will be much simpler and more convenient for you to participate in various events and food festivals so that you may expose your dishes to people who might become prospective clients. Altering your position tactically daily or weekly, depending on the increase and decrease of foot traffic in certain locations, is another option available to you.
Just keep in mind that you should select a place that is conveniently reachable (by automobiles and other vehicles) and has a significant amount of foot traffic.
In recent years, enterprises have been increasingly centering around food trucks.
In 2018, there were 5,970 food truck establishments, nearly double the amount from 2013, when there were 3,281.
In 2018, these companies reported an annual payroll total of 320.6 million dollars and employed 16,210 people.
Businesses that provide mobile food services fall under the North American Industry Classification System code 72233 and are found in all 50 states and the District of Columbia.
In 2018, the state with the most residents, California, had the most deaths (753), while South Dakota had the fewest deaths (11).
57% of the total population of the United States was accounted for by the top 10 states: California, Texas, Florida, New York, Oregon, Washington, Pennsylvania, Ohio, Colorado, and Virginia.
The food truck industry is worth an estimated one billion dollars.
Between 2012 and 2017, sales from food trucks climbed by 79%, going from $660.5 million to $1.2 billion in total revenue.
In 2017, the average sales for a food truck establishment were $226,291, and the average sales for a food truck employee were $86,212. These figures were compiled at the national level.
These figures are from the Economic Census of 2017, which compiles comprehensive data (including sales figures) for virtually all NAICS codes at the national, state, metro, county, and place levels. The geographical particulars change depending on the NAICS sector.
California led the pack in food truck sales in 2017, bringing in $276.1 million, followed by the state of Texas with $112.6 million and the state of Florida with $98.3 million.
Between 2012 and 2017, sales from food trucks increased by a combined total of $114.5 million, $82.5 million, and $57.8 million in these three states.
In terms of average sales ($392,136) per food truck operation, California ranked first in the nation. However, Vermont had the greatest average revenue ($157,400) for each person working in a food truck.
It takes less initial capital investment to start a food truck business.
Compared to a traditional restaurant, operating a food truck requires significantly less financial outlay, making it an attractive option for entrepreneurs interested in the restaurant industry. Suppose you run a food truck rather than a traditional restaurant. In that case, you save money on the initial setup that you can use toward other business endeavors such as advertising or menu development. This in and of itself is a significant competitive advantage. The single most significant expense is purchasing your vehicle, but if you get a used truck and invest in some new kitchen gear, you can have your food truck up and running for less than $52k.
Next, you will need to set out your truck with the appropriate equipment, including exhausts, grillers, heat lamps, and any other specialized apparatus that may be required for the food you sell.
It's hard to beat the value of a good meal from a food truck. For example, a successful food truck seller in Miami often averages between $25,000 and $30,000 in monthly earnings. The price of the most basic food truck is $50,000, which includes the additional costs for improvements such as additional equipment and furnishings.
The Costs Involved in Running a Food Truck Are Considerably Reduced
When you own a restaurant, you are required to make significant financial investments in various utilities, hire a large number of employees, such as chefs, cashiers, servers, kitchen managers, cleaners, and so on, and pay property tax if you own the real estate on which the restaurant is situated, or pay monthly rentals if the property is rented. As a result, you must control the expenses of your operations, particularly the hidden charges, which may be draining your restaurant of its financial resources.
On the other hand, the operating expenditures of a food truck are variable from month to month and are restricted to the cost of food, supplies, and gasoline. You don't need an entire staff; a small team will suffice, and most of your taxes will be significantly reduced.
The cost of completing necessary maintenance and repairs at a restaurant might quickly become prohibitive. No way to get around that owning brick-and-mortar real estate calls for constant care. Maintaining restaurant décor, furniture, electrical appliances, and other culinary equipment, as well as fixing leaking pipes or ceilings, among other things, requires a significant amount of time, energy, and financial investment.
On the other hand, mobile food businesses can perform well with only a small bit of maintenance and repair work over time.
Customers are attracted to food trucks in greater numbers.
Invest in a Food Truck to Keep Your Operations Affordable and Clean
Buying a food truck is a low-cost way to enter the competitive market of mobile food sales, both in terms of initial investment and ongoing expenses. It is unnecessary to pay hefty leasing fees or perform frequent and expensive maintenance on food trucks. Meals of five-star quality and deliciousness may be purchased at slightly reduced costs from food trucks, which are not offered elsewhere. They will provide dishes of the highest quality, cooked by skilled chefs utilizing sophisticated cooking equipment, directly to your home without increasing the prices.
Considering everything, operating out of a food truck is more sustainable, cost-effective, and adaptable. By converting your second restaurant site into a food truck, you will increase the likelihood of gaining more sales opportunities, visibility, traffic, and the size of your client base.
Modern food trucks can be customized to make your ambitions a reality. They are strong enough to withstand severe weather and fuel-efficient enough to keep your expenditures for gasoline at a minimum. They were developed to make your side hustle a success while keeping expenditures minimum and leaving a long-lasting impression on the people who may become your customers.
The variety of dishes available is the salt of life.
If someone has never eaten from a food truck before, they might believe that the only things they can get are hamburgers and hot dogs. This is the farthest thing from the truth possible. The vast majority of mobile food vendors are in no way comparable to the quick-service restaurants we visit much too frequently. Many of them can be considered to be rather unusual.
For example, Fork and Truck in Houston provide customers with a menu that features items such as chimichurri lamb, Cuban sandwiches, chicken beignets, and even duck banh mi. Crab rolls, New England clam chowder, and lobster bisque are some items found at Luke's Lobster truck in New York. What can we learn from this? Don't evaluate a vehicle based on one of its corners.
If this is the first time you have ever eaten at a food truck, you are doing yourself a disservice. The ambiance, choices, health ratings, and food are all superior to those found in traditional brick-and-mortar shops. If you happen to come across a food truck in the future, you should stop by. This may be the finest supper of the whole week.
The Nuts and Bolts of Mobile Food Vendors
Food trucks provide entrepreneurs access to a wider market since they can bring their wares directly to the consumer. A novice can improve their thoughts and boost their self-assurance by participating in this activity. A robust starting point has a smaller business model since errors have a much lower influence on that model. Some people may find the extensive range of possibilities and the significance of marketing and social media exhilarating. Still, it may be overwhelming for others, especially those who place a high value on predictability.
For such individuals, the location of a restaurant is responsible for sixty percent of its success. It can be a more consistent and dependable form of enterprise to manage. It is possible that the initial investment would be more, and the duration of the contracts would be extended.
Your existing skill set, available funds, and personal preferences should guide your decision on whether to launch a food truck or prepare your restaurant from the ground up. Planning, dedication, and having a crystal-clear picture of the end goal are all requirements for achieving success down either path.
After you have collected a realistic list of advantages and disadvantages, it is time to start researching the local environment and drafting a sound business strategy. You won't have to wait long until you can feed everyone.