The food truck business is lucrative, but then; every company has its ups and downs. One has to learn to cope and run the business effectively.
A food truck is a long vehicle that boosts kitchen and cooking facilities. It’s more or less like a mini restaurant. The only significant difference is that customers have to sit outside to eat or take their food home.
Most people have a keen interest in the food truck business. They enjoy cooking and have the financial capacity to set up the business. But the one thing stopping them is the turnover. So, here’s the big question.
How much do food trucks make?
The amount food truck owners make varies. You can earn anywhere from $23,000 to $100,000 per annum. You can even make more money annually. It all depends on diverse factors, such as the location, items you’re selling, and others.
Truck food businesses also face several challenges like every other business. Your ability to overcome these challenges will determine how successful the business would be.
We shall be looking at the factors that can determine food truck business earnings and more. Continue reading.
Factors That Determine How Much A Food Truck Make
Let’s consider things that can influence your food truck earnings.
The food truck location:
Where you site your food truck per time determines how much you’ll make. If you take your food truck to an event or festival, you’re likely to make more profit than when you site it outside an office block. For instance, a food truck can make over $50000 at a 4-day Coachella but make about $2000 per day at a local fair.
The product the food truck sells:
Some food products have a higher profit margin than others. Therefore, the amount one makes will depend on the product you’re selling. For instance, a food truck that sells barbeque for $10 may have a higher profit margin than one that sells smoothies for $4.
Even though the fees for running a food truck are low, you will always have running costs. Running costs includes staff salary, travel cost, marketing cost, and so on. So, the higher your expenses, the lower your profit margin and vice versa.
The structure of the business will determine how much you make. Your truck business may be a sole business or a partnership. For a sole proprietorship business of such, you may have to bear all the risks, including the profits and losses alone. However, for a partnership, you’ll have to split the profit with your partner. But it can be of great advantage in the long run. So, the business structure you choose can influence a lot of things in your food truck business.
Availability of the owner:
How available you are for your food truck business will determine how much you’ll make. The profit margin for a part-time business will be different from that of a food truck full-time business.
However, it is still possible for you to work part-time and earn the same income as someone that works full-time. It all depends on your commitment, location, and business strategy.
How To Manage A Food Truck Business Successfully
Do you have a food truck business or plan to have one soon? Use these tips to run it successfully.
Have a viable business plan:
Because of the highly competitive nature of the food truck business, you can easily earn less than expected. That’s why you need to lay a good foundation for your business. To increase your chances of making more profit, create a plan for the company.
Furthermore, don’t take your business plan lightly. Write your business plan yourself or hire a professional. Your business plan should contain your business and product description, your plan, and analysis of your market. It should have all the elements that make up a business plan.
Choose your type of food truck wisely:
When starting a food truck business, you have to choose your niche wisely. However, this can be somewhat confusing because the list of food truck types seems endless. From pizza to taco to grilled cheese, the list is inexhaustible. o
So, the type of food truck you choose plays a part in your business’s success. For instance, if your area has lots of pizza food trucks, it won’t be wise to start one. Instead, it will be better to start a barbeque food truck based on demand.
So, that is why you need to take your market research seriously. Also, choose a food truck business that not only has less competition but one that you’re also passionate about and appeals to your interest.
Have excellent customer service:
What stands you out from other food truck businesses is your customer service. You can easily capture the hearts of your customers if your meals are excellent and your service is top-notch.
A little compliment or a “thank you” to a customer can make a difference. The way you treat your customers can determine if they’ll come back or even recommend your business to their family or friends.
Use discounts or giveaways:
Sometimes, people try out new places when there is discount or giveaways. So, when you give deals or giveaways to your customers, you’re luring them to return. After all, it’s hard to turn down a discount.
Get your licenses and permits:
To effectively run your food truck business, get the necessary licenses and permits. However, the licenses and permits vary according to your state and location. Some of them include; business licenses, health permits, food handler permits, mobile food facility permits, etc.
Get your food truck insured:
Since your business depends on a truck, ensure your food truck is insured to avoid losing your business. The insurance should cover truck accidents and other property damage.
Also, it should cover your equipment, employees, and other aspects of your business interruption.
Use the proper marketing channels:
Choose the marketing channel that is best for your business. You can market your business through your food truck name and design. But ensure that the outer part of your food truck boost designs that comply with the signage restrictions in your state.
Furthermore, you can use a traditional medium like direct mail marketing. Also, you can use digital marketing strategies like search engine optimization (SEO) or email newsletter. It would help if you also planned to improve your marketing strategy over time. Do what’s best to increase customer base and revenue.
Use of social media:
Let’s be honest; social media can be a plus to your food truck business. So, please take advantage of it. Create Instagram, Facebook, and Twitter pages for your business. It would help if you also learned to post your write-ups on your pages and use them to share your menu list, food truck location, and giveaways.
People that love your food truck will follow you on social media. They’ll also share your content with their friends, who may eventually become your customers.
Expand your services:
Don’t limit your business to one aspect. You can offer catering services for weddings, office events, and parties. Do your research well and decide what type of events you’ll offer your services and the variety of dishes you’ll serve.
Also, you can attend festivals and local fairs. Doing so can increase your visibility and put you in front of your customers.
This can be a great way to increase your sales and customer reach. Some customers might prefer having their food delivered to them. So, this option can make a significant difference in your food truck business. You can hire an employee to take care of deliveries. However, you can choose to partner with a delivery site to do it for you.
Benefits Of Owning A Food Truck Business
It is flexible:
You can choose how you want to run your business. And you get to decide precisely how you want your business to be. These include the structure, products, marketing, and other aspects of the business that depend on you.
Ownership of the business:
If you’re the business owner, you get a level of tax leverage. You will be responsible for move your food truck forward since you own it. Also, you set your goals and milestones and create measures to meet them.
Your business is mobile:
Food truck business allows entrepreneurs to test various locations. You can move your business to any location and at any time. Unlike any other food business, you can quickly drive your food truck wherever demand is for your product.
Control over your menu:
You can design your menu to suit your environment and easily adjust it anytime. Since you’re the owner, you don’t need to get permission to alter your menu. You can do whatever will satisfy your customers.
Choose your staff:
You’re able to choose the kind of staff you want. You can decide to hire your family and friends to be your staff. You can also choose to hire an extra cook or delivery person to reduce your work.
Ability to experiment with different locations:
The food truck business allows you to try out various locations. So, you’ll be able to know the one best suited for your type of food truck business. Besides, you can easily take your food truck to a festival or other activity spots.
Starting a food truck business is a big step. But then, you have to be patient for the business to grow. The food truck business is highly mobile. So, therefore, be ready to leverage the mobility of the company to increase your customer base.
You should also be creative when choosing your menu. Understand that making the right decisions will influence your earnings.