Fit Small Business content and reviews are editorially independent. We may make money when you click on links to our partners. Learn More.
With more than a decade of hospitality experience, Mary has worked in some of the most celebrated restaurants in the world. Her expertise is featured across Fit Small Business in restaurant, retail, and starting a business content.
Truck Business: Now What? - How To Value A Food Truck Business title=You Want To Sell Your Food Truck Business: Now What? style=width:100%;text-align:center; onerror=this.onerror=null;this.src='https://encrypted-tbn0.gstatic.com/images?q=tbn:ANd9GcQNDO_Wv67wo6oK5oSswFmu3VSIZ4G2DLZ73zYNuAlzfUR1q1jD7kcr5u7VMHA6G9ZGpac&usqp=CAU'; />
There has never been a better time to start a food truck business; in fact, the number of food trucks grew by almost 10% from 2022 to 2023. If you’re looking for a money-making business idea, a food truck is a great one. Successful food trucks can bring in more than $500, 000 per year, with startup costs from $40, 000–$200, 000.
U.s Food Truck Services Market Size & Share Report, 2030
Starting a food truck typically takes three to 12 months and requires the nine steps below. Download our checklist to help you stay on track.
When starting your food truck business, it’s essential to make sure you are filling a hole in the market, supplying a demand, and operating within the law. So, you should evaluate the food truck scene in your area and research local food truck laws and regulations. This information will help you decide if a food truck is the best-fitting business for you to start.
Before you sketch out your menu and business plan, you should find out what trucks are most successful in your area. A quick internet search for “food trucks” and your city or county name will generally yield plenty of results to start.
Food Truck Values
Introduce yourself to truck owners and ask them about their biggest operational challenges. You’ll find that most are eager to share their knowledge with an up-and-coming food trucker. One of the best aspects of food truck communities is the camaraderie and support of other truck operators.
Food truck regulations fall into three major categories: health, zoning, and vehicle requirements. Health regulations govern what equipment your truck must have, what permits you and your employees need, and whether you need a commissary kitchen. Zoning regulations determine where you are permitted to park your truck and what types of neighborhoods are not permitted.
There will also be laws governing what type of vehicle you can use, what emissions regulations your truck must meet, where you need to register your vehicle, and if your truck driver needs to have a commercial driver’s license (CDL). Every state, county, and major city has its own laws regulating food trucks and street vending.
Food Truck Business Plan Template Sample Pages
New York City, for example, requires every person working on a food truck to have a mobile food vending license. Los Angeles requires that all food trucks post No Smoking signage on their trucks. Many major cities and counties also require all food trucks to have a current contract with a commissary kitchen.
Commissary Kitchen: Sometimes called a “support kitchen, ” this is a commercial kitchen, rentable by the hour or day, that supports mobile food operations. Commissaries are equipped with cooking equipment, refrigeration equipment, ice machines, and storage areas that meet local health department requirements. Many also provide areas to dispose of grease and greywater, truck maintenance areas, and a secure place to park overnight.
Food trucks are regulated mostly by city or county authorities. In rural locations, you’re mostly dealing with county offices. In densely populated areas, the city has jurisdiction. You can learn your local regulations by checking your local health department website. However, you’ll get faster and more accurate information if you put in a couple of phone calls—one to your city or county health department and one to your city or county clerk’s department. When you get a person on the line, you’ll want to ask:
Strategies To Increase Your Food Truck Revenue
The answers to these questions will have a considerable impact on how expensive it is to start a food truck in your location and how long the process takes.
Food trucks are known for their clever remixes and personal flair. The most successful food truck concepts reflect their owner’s interests and personal experiences. Consider popular Las Vegas truck Buldogis, which serves Korean-inflected gourmet hot dogs that reflect the owners’ American and Korean backgrounds. Start with your menu, then your name and logo should naturally follow.
Keep your final menu simple and streamlined. Most food trucks get by with a rotating list of three to five signature items and a couple sides. You can change items seasonally to keep customers interested, but a food truck is not the place for a 30-item menu; you simply don’t have the space to store that much food.
Pdf) The Influence Of Utilitarian And Hedonic Value On Food Truck Patrons' Behavior
The primary customers for food trucks are 18 to 34 years old, so food truck foods tend to be very trend-driven. Alternative everything will be the name of the food truck game in 2023; alternative flours, alternative sweeteners, and plant-based meat alternatives all sell well to this age group.
With a general idea of your concept, you need a name that fits your food. Your truck name will become your social media handle and logo and will be emblazoned on the side of a truck, so it’s important to get it right. Our restaurant name generator can get your creative juices flowing.
The last piece that completes your food truck concept puzzle is a business logo. You’ll need something that evokes quality food and is exciting enough to compete with other food trucks. You will also use your logo on menus, business cards, social media, and all of your advertising efforts. It will provide the basis for your truck design and uniforms (if you have them).
Food Trucks, Carts & Trailers For Sale
A captivating logo can make a huge difference in whether people step up to your truck or pass right by, so you want this important marketing element to be in the hands of a talented designer. You don’t need to break the bank to do this. Freelancer sites like Fiverr let you browse portfolios from freelance graphic artists who’ve designed both simple food truck logos and full vehicle wraps, with prices starting at just $5.
When starting a food truck, you’ll need to create a business entity and register with your state. For most food truck operations, an LLC makes the most sense. It protects your personal assets in the event of a lawsuit or business bankruptcy and shows vendors, insurers, and permitting agencies that your business is legitimate.
Filing fees vary from state to state, but forming an LLC isn’t necessarily expensive. Costs range from $40 to $500, and you can find the forms you need on your state’s business office website. Filing LLC paperwork can be tedious and a little complicated. If you need guided assistance, we recommend working with a legal website like Incfile or one of our other recommended online legal services. Incfile doesn’t charge fees beyond your state filing fee to file your LLC and can usually process LLC paperwork by the next business day.
How To Start A Food Truck Business: A Complete Guide
You’ll need to separate your personal finances from your business finances by opening a business bank account. This account will hold funds invested in your food truck and be used to pay permitting, licensing, and vendor fees. When your truck is up and running, your credit card deposits will run to this account, and you will pay employees and suppliers from it. You can inquire about business banking options at the bank that handles your personal banking, or see our list of the best small business checking accounts.
Starting a food truck business can cost anywhere from $40, 000 to $200, 000, depending on your location, the cooking appliances you need, and the type of truck you purchase. The table below gives you a rough estimate of the itemized costs involved in starting a food truck business. We break down the costs in the charts below.
Like any other business, your food truck will need a well-prepared business plan if you want it to succeed. Your business plan puts your concept on paper so potential investors and loan officers can see that your food truck is a good investment. Having a plan for becoming profitable gives you a better understanding of how long it will take for your food truck to turn a profit and what funds you need to sustain your business until that point. Your food truck business plan serves as a basis for how you envision your business to start, run, and grow.
How Much Do Food Trucks Make? (average Food Truck Revenue Data 2023)
When preparing your business plan, make sure that you include all the details. For example, itemize your marketing strategy, explain how each line item will reach your target consumers, how much it will cost, and how many customers it will likely bring in. List your product line to include all food items, how they will appear on your menu, the ingredients, and at what price you plan on selling each item. Include your logos and branded menus. If you have sourced a truck, include photos of the truck and possibly an artist’s rendering with your logo and branding.
Most people don’t have immediate access to the kind of capital required to start a food truck. Financing your business will be an essential step. Most lenders require a business plan before issuing a loan, so be sure to have your
0 comments
Post a Comment