3 Things to Know Before Entering the Food Truck Business

3 Things to Know Before Entering the Food Truck Business

The food truck business is growing in popularity as an option for budding entrepreneurs and those who have a desire to be their own boss (while making six figures). According to Roaming Hunger, the average full-time food truck in America grossed more than $300K in 2017. And over the last five years earning averages continue to go up at a fast pace. This si why entering the food truck business is an attractive option for so many people. But before you decide to buy a food truck and attempt to live the good life, there are some things you should bring to your attention to ensure you make the best choices in how you go through the process of starting your own food truck business. Here are three tips to help get the ball rolling down a solid path of opportunity.

1. Know Your Market

It goes without saying that anyone who buys a food truck and becomes an industry player is highly passionate about what they do. Just make sure your passion doesn’t create a biased cloud that creates a disconnect in the communities you plan to serve. Do some field research; get a solid understanding for who your customers are, what current food trucks they buy from, why they like your competition’s food, and what it is that generally attracts them to food trucks. This could range from the cuisine itself, to the branding, and even to the type of service being offered.

2. Buy a Food Truck from the Right Company

Clearly, your food truck is going to be the most expensive part of your investment and the platform that will allow you to run your business. It is paramount you work with the best custom food trucks builder who understands your market and goals. Investing in something too big will cause financial loss, as will buying a truck too small to accommodate your equipment and staff. The best food trucks are the ones designed to meet specific requirements, and these are always unique in the food truck business. Your food truck builder should manufacture a vehicle designed for your cuisine, staff size, and that will allow you to grow and still work comfortably.

3. Should Your Custom Food Truck be New or Used?

In 2017 roughly 80% of new food trucks failed within their first two years of business. One of the leading causes was ongoing expensive repairs. When you buy a used food truck you may be saving money up front, but in the long run you pose a good chance you will lose thousands. Keep in mind that for every day your food truck is in the shop undergoing mechanical or equipment repairs, you lose money while your customers go to your competitors who try to earn their loyalty. There are a number of financing options to help people buy custom food trucks new from a respected food truck manufacturer who can ensure they will be in good working order throughout the lifetime of their business. Only routine maintenance will be required.