BUSINESS STRATEGY & GROWTH, FINANCING & BUDGETING, OTHER • November 8, 2016
1 minute Read
It seems like food trucks are everywhere these days. From food truck fairs to food trucks at breweries and special events, you can’t go a weekend without passing one on the street.
Starting a business in the food industry is an ambitious and rewarding endeavor, but entrepreneurs trying to break into this space must be ready to face many challenges. The popularity of food trucks today makes starting one very appealing, but is this just a fad or is this trend here to stay? Let’s look at some of the advantages and disadvantages of a food truck:
1. The initial investment is low – Whether you rent or buy your food truck, the initial cost is much lower than a brick and mortar building. Next, you’ll need to equip your truck with the necessities like exhaust, grills, heat lamps and any other tools you might need for the particular food you intend to sell.
2. You can switch up your location – Location is everything when it comes to the food business. And unless you can find a spot in the most popular area of a city, choosing a location always means taking a chance. With a food truck, this isn’t an issue. You can simply change your location whenever you please.
3. Maintenance is easier – Owning a restaurant is expensive. What happens when you have cracks in the parking lot or need a new roof? You’ll also need to pay utilities, hire a larger staff and pay property taxes if you own the property. With a food truck, your regular expenses are much lower. You simply need food, supplies, and gas.
1. Buying the right truck takes time – There are many options when it comes to acquiring a food truck. Used food trucks typically cost around $30,000 while a newly designed one can cost over $100,000.
2. There are many rules and restrictions – In some states there are certain rules and regulations governing the mobile food business. You’ll need to contact relevant agencies regarding the individual locations where you plan to set up shop. You’ll also need a state-licensed commercial kitchen to operate in most communities. Finally, you’ll need to watch out for unpredictable factors, such as weather.
3. The mobile food industry is competitive – The food truck and mobile food industry is becoming more and more competitive as many entrepreneurs move into this space.
The mobile food industry’s booming popularity may seem like a promising business opportunity, but every business venture has its risks and rewards. Take some time to research and find out if investing in a food truck is right for you.
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