The food automotive industry has grown into a $ 1.1 billion industry by an industry by 2020, according to IBIS. New research credits many factors for the emergence of the food car industry, one of which is that consumers love being able to get gourmet food options at a fraction of the price. This may sound tempting when thinking about starting an entrepreneurial food truck business; But starting a successful business is much easier said than done.
Wondering what you need to do to start a successful food truck business? Start by creating a thorough business plan. Here are some things your business plan for food trucks must include:
1. Preliminary Food Truck Business Plan Research: Potential Competition & Locations
Before you buy your first truck, a lot of research needs to be done to make sure you make a good investment. A good place to start is to read the stories of other successful and inspiring companies. Be sure to constantly ask yourself, "What makes this company different or stand out from the rest?" and note.
After that, it's a good idea to start exploring potential competition and places. Some factors to consider:
- Do any competitors specialize in the same food offer?
- Which city, location or business district do you plan to operate in?
- What are the best and busiest times to serve?
- What is the competitive landscape in that area?
- Is there room in the market for more alternatives?
2nd Financing and Finance
It's no secret that it takes money to start a business. You will need access to finance and capital to get everything you need to start a food truck business. You need continuous access to cash flow to keep your business alive and well. Think of typical restaurant expenses and put them into two categories:
- Fixed costs : Truck loans, employees' salaries / salaries, loan payments, license fees, insurance premiums and more. Fixed costs are usually easier to plan for.
- Variable costs: Food costs, hourly wages / prices, tools, gas prices and more. Variable costs are more difficult to plan for precisely due to price fluctuations.
A solid financial plan can make or break an entire food truck business. Read more about financial planning for a company with these resources:
3. Getting a permit to work in certain places
Often the main places to park and serve customers are a permit from municipalities to operate legally. Depending on the municipality, state and services provided, you may be charged a percentage of your gross sales or an annual fee along with the license fee. For more information about which authorities you need to visit, first visit your municipality's website. In addition, the requirements for food truck permits can also change from time to time ̵
For more information, visit the National Food Truck Association's website or find a regional food truck association near you.
4. Finding the right vehicle for your food truck business
Finding the right vehicle for your business is one of the most important components of a food truck business plan. Buying a food truck is a little more complicated than going out and buying one of the lot. Most food trucks are customized and built to meet the unique needs of their new owners.
The process of finding, designing and buying a physical truck will take a lot of time and money – plan ahead for this. More research will be needed to find the right person who can help with the physical work of throwing and assembling a food truck.
5. Preparing for Health Checks and Licenses
In the restaurant industry, the ancient saying "the only things in life are health checks and taxes."
Which takes us to our next article to be part of a food plan business plan: prepare for inspections and necessary licenses. Health checks and regulations were designed to protect the public from food-related illnesses that can occur if food is not properly prepared.
3 Types of Inspections to Prepare for
- Routine Inspections : Often unannounced, routine inspections look at all aspects of the food truck business to ensure compliance. Some items include hand washing, waste disposal, equipment inspection, access to hot and cold water, fire safety checks and more.
- Complaint checks : This type of inspection occurs if a customer happens to get sick or file a complaint. Remember that all eyes are on your truck business and its employees. You can expect a thorough inspection if a complaint is received.
- Follow-up Checks : Follow-up checks usually occur after an offense or violation has been committed. Often, health inspectors will give a company an allotted time to correct a mistake. You can trust them to come back to make sure corrections have been made.
6th Food Truck Business Marketing Plan
Like all businesses, your food truck will need to attract customers. A thorough marketing plan will be necessary to make sure people know you exist! As your brand begins to grow, you need to stay fluid and flexible in your marketing efforts.
Consider using social media accounts, physical characters and even consider the graphic design of your truck in the marketing plan. Consumers are increasingly using Google and other customer review platforms to decide where to eat. Investing in local search engine optimization (SEO) can make a big difference in the popularity of your business.
Read, "8 Tips: How to Advertise Your Restaurant Business" .
7. Pricing Plan and Menu Options
Make sure you include detailed pricing and a menu plan in your food truck business plan. One of the variable costs that affects your profitability is food costs. It is important to keep an eye on the money that is being spent and earned money. Consider buying goods in bulk and finding a balance between affordable ingredients and fresh ingredients.
Customers usually expect a consistent experience when visiting a restaurant, even a food truck, and pricing is included in this expectation. In addition to a few items, a main goal should be to provide consistent pricing to consumers.
Restaurant insurance for over 100 years
Society Insurance offers business insurance including restaurant and bar insurance. Your business is unique, your insurance should be. To learn more about how Society Insurance can help your trucking business, consult with a Society agent in your area.