Food trucks have been a huge source of inspiration for foodie entrepreneurs.
Previously, aspiring chefs would have to dish out big bucks if they wanted to try their hand at running a restaurant.
Mobile food catering is a great way to start your journey as a foodie entrepreneur, especially if you don’t mind starting solo. A mobile food business lets you start small for as little as $5,000 or big for up to $100,000 depending on your resources and goals.
However, before you jump into that food truck driver’s seat, you should really understand what you’re getting into – starting a food truck is a tremendous endeavor and no easy task by any means.
Before starting your food truck business, here are ten key factors you should consider.
1. Know Your Market Niche
One of the first things to think about before starting a food truck is your target sales niche.
What kind of food do you want to be selling? The kind of food you choose to sell can be influenced by:
- Personal Preference. What type of food you enjoy cooking or have experience with? The long hours on your truck will be more fun if you have a personal connection or passion for the food you are cooking.
- Popularity. Consider what kind of food you think would be popular in your local region.
- Competition. Think about your food truck competition – you may want to go after a food niche that doesn’t have much representation. Taco food trucks are a dime a dozen, and if the competition is established, it can be hard to stand out. However, serving a unique food like crepes or hand pies might provide the perfect opportunity to separate yourself from the pack.
- Trends. It may also be helpful to think about what foods your foresee becoming popular in the future. The cupcake craze and bacon bonanza have all had their time in the sun. Can you predict what foods might blow up next?
- Specific Demographic. Your food choice might also be influenced by the kind of demographic you hope to reach or locations you want to focus on. For example, if you know you want to concentrate on serving college students on university campuses, you probably won’t want to create high-end dishes with a hefty price tag.
From this information, you can determine whether to sell prepackaged or prepared food as well as whether to sell your food hot, cold, or from the counter. You may want to open an onsite kiosk or push a small cart around a limited location, like a business park.
On a larger scale, you may choose to drive a food truck that is outfitted with equipment that actually prepares the food you’ll be selling.
The next step will be to find out if there is market interest in your food products. This can be done by:
- Emailing a survey to networks of local eaters.
- Consulting your chamber of commerce.
- Engaging in conversation with local residents.
It’s very important to gauge interest in your food philosophy before moving forward.
2. Business Plan
Develop a business plan that maps out your company goals for your mobile food service business.
Not sure where to start? Take a look at our complete guide to writing a food truck business plan!
Organize important information about your proposed company to share with investors, prospective clients, and licensing offices.
The plan will include a general overview of your business, including:
- Business goals
- Food products
- Equipment needs
- Employees
- Budget and funding
Preparing a professional plan will help others to take your proposal seriously.
The better your food truck business plan is, the more prepared and organized you will be moving forward. It’s important to start as organized as possible, because food truck businesses often become chaotic at the drop of a hat!
3. Licensing
The food industry maintains high standards to ensure food safety and quality. This quality is ensured through licensing.
When it comes to licensing, usually the city health department or county health agency regulates food commerce and will issue appropriate licenses.
Food truck licensing restrictions vary from state to state, so check with your local health department to learn more about how to safely operate a mobile food business and how to get licensed in order to run your food truck.
It’s also worth reaching out to other food trucks in your area and asking about their experience with the licensing procedure – they may be able to clue you in to hints or better procedures to expedite the licensing process.
4. Locations
You’ll want to make sure that you scope out your preferred locations, along with other alternate routes or parking spots.
Be careful not to transgress competitors’ areas and stay on good terms with local businesses nearby (it wouldn’t hurt to offer them a free drink or side dish – remember, if businesses nearby aren’t competitors, they might be able to drive their customers over to your truck for a mid-day snack!)
You may want to consider local tourist attractions, schools and colleges, industrial complexes, construction sites, and many other sites for selling your food.
In choosing possible sites, keep in mind potential traffic patterns and parking areas for your truck. Remember, the goal is to be available but unobtrusive.
Cities slot out food truck parking spots in different ways. In Boston for example, food trucks enter a lottery, with some lucky trucks getting the top spots.
Talk with other food trucks and get info on their experience with different food truck spots – maybe one spot is dead quite at lunch, but unexpectedly busy after work hours.
5. Employees
If you plan to handle all aspects of the business yourself, you can count on spending at least ten hours daily for food and truck preparation, travel time, selling food, marketing and promotion (probably through food truck social media), nightly clean-up, and record-keeping.
You may want to hire a few part-time employees for help with tasks like these. Interns, who often work low-cost or for free, might be interested in learning the business while working a few hours each week. Keep in mind that you will need to train new employees as well as monitor their performance.
6. Food Specialties
As you think about the type of mobile food you want to sell, reflect on the foods you enjoy preparing and eating.
Learn all you can to become an expert on the food products so you can answer customer questions and provide helpful information to pique interest. Remember, you’re going to be cooking this food A LOT, so you have to love it!
One of the greatest advantages of starting a food truck is that chefs have a lot of flexibility to experiment with the menu and try different dishes.
Once you know the general category of food you’ll be serving, don’t be afraid to mix it up and try new food experiments – customers will love checking out and trying your latest creations!
Additionally, it’s worth considering your packaging as well. Packaging your food in attractive ways can help to increase brand recognition and improve your customers’ overall experience.
7. Health and Safety
As part of starting a food truck business, you will also need to learn about food safety, including the correct temperatures for cooking and maintaining bacteria-free items. Buying quality foods and using proper storage facilities are additional concerns you’ll need to consider when it comes to health and safety.
Pest control around food items, along with clean and sanitary cooking and serving surfaces, are an important part of serving food that is safe and enjoyable (in some cities, taking a class in food sanitation is mandatory for getting your food truck licensed). The health department will arrange inspections, sometimes without notice, to ensure that food is being handled safely.
Do not slack on sanitation! Make sure you and all employees understand how to properly store and prepare food. A bad grade from the health department could make new customers very leery of your truck. While most individuals have come to realize that today’s food trucks are far from the roach coaches of the past, it’s still important to improve and build the public’s perception of food trucks, rather than make them fearful and fill them with doubt.
8. Competition
While starting a food truck business may seem relatively easy, it is also important to keep an eye on the competition.
The mobile food industry has grown exponentially in recent years, so you are likely to encounter various types of competition in your town or neighborhood. It is best to respect each other’s turf and find a new location if someone beats you to the one you had in mind (in situations where trucks don’t have pre-designated spots).
While you should be aware of competition, don’t miss out on opportunities to work together with other food trucks or even local brick and mortar businesses.
If you are selling a completely different product, like fresh fruit smoothies, while the nearest competition offers tacos, you might be able to pair up and cater to a larger customer base that will want to buy both products.
While in some sense you are competing with other food trucks for business, it is in your best interest to befriend other food truckers. Food truckers are often a friendly and welcoming bunch, and other truckers can share tips and insider info to help you out. If one truck can’t make a catering gig, they may throw it your way. If a location hasn’t performed well for one truck, they may advise you against it. There is a lot you can learn from other food truckers!
9. Challenges
While preparing your business plan and courting investors, don’t forget to factor in the challenges that may arise.
Shifting weather patterns could bring winter to your area earlier than expected, possibly reducing the number of days you can sell to the general public outdoors.
In cities with heavy winters (like Boston), many trucks retire for the entire winter, making a serious dent in profits. Some truck persevere through the winter, but this can be costly too, with less customers willing to stand outside for your food and increased vehicle maintenance.
Vehicle maintenance costs on a large, specially outfitted truck can be huge, so make sure you’re setting aside money for repairs in your food truck budget.
Learning how to make a shopping list, to buy and prepare top quality foods, and to avoid spoilage or waste can be tricky at first. Learn all you can and do research to become knowledgeable when starting a food truck. If a problem occurs, you’ll be better able to handle it.
10. Growth and Development
Although you may start off perfectly satisfied with your push cart full of prepackaged snacks, you may eventually want to consider growing the business by graduating to a kiosk, trailer, or truck.
Give some thought to what that might look like. If you decide it’s a definite possibility, consult a mentor for helpful feedback. You can also work on long-term goals like marketing strategies and a social media presence.
If you already have a food truck, you may find yourself growing into a brick and mortar business one day! Consider what the path to a physical restaurant would look like, and how you might prepare for that future success.
Starting A Food Truck: Work For Your Dream!
Starting your food truck business likely represents a long-held dream coming true!
Keep in mind, however, that your food truck dreams won’t happen spontaneously or overnight. Consider tips like those outlined above to better understand the opportunity that awaits you as well as the responsibilities of managing a food truck operation.
With thoughtful attention to points like these, you will soon deliver delicious food that fills a valuable dining niche and you’ll find customers that will love you rolling on in!
Thanks for the advice to keep traffic patterns in mind when choosing location, since the goal of food trucks is to be available but not intrusive. My husband and I really like the idea of having a custom food truck manufactured so we can use it to make some money at local events. I’m glad I read your article because I know the location will be a big factor in determining our success, and you helped me feel a lot more prepared to choose the right places!