Top Reasons Why You Should
Open A Food Truck.
The Future Of The Food Truck
Industry Is Booming!
Mobile street food vending has increased by nearly 13% in the past five years and is expected to continue to grow. It is no longer considered a fad. Mobile street food vending is now a $1.7 billion industry. This is a huge opportunity for local, regional and national brands especially given that the street food vending industry is still relatively new. which is massive growth for a newly introduced industry.
With low investment and minimal risk, food trucks have become an increasingly popular choice for restaurateurs. Instead of opening multiple brick-n-mortar locations, food trucks are proving to be more lucrative. Food trucks are also a great way to increase the visibility of your brand in the local marketplace.
The Benefits Of A
Successful Food Truck Program.
1. Food Trucks Require Low Initial Investment
A food truck provides greater profit margins than a traditional brick-n-mortar mainly because it involves a much lower investment. This alone offers a greater ROI than a typical brick-n-mortar. The biggest expense of going mobile is buying, equipping and branding the right type of mobile vending unit for your concept. You can set up a food truck in a few short weeks as opposed to the months upon months of costly build-outs, inspections and permit requirements.
2. Food Truck Involves Relatively Low Operation Cost
Owning a restaurant requires you to invest in expensive utilities, hire a wide range of staff including cooks, cashiers, servers, kitchen managers, cleaners, etc., and pay property tax if you own the real estate. If you fail, guess who keeps all of the attached equipment such as your exhaust hood, fire suppression system, grease traps, sinks and sanitizing systems etc...? In most cases, it's your landlord.
With a food truck, you own it outright unless you get involved with one of the leasing programs that are available. Hence, it becomes imperative for you to generate a significant amount of revenue each and every day if you have a brick-n-mortar.
On the other hand, the operational costs of a food truck are simple. Costs are limited to food, labor, event fees, supplies, insurance, and gas. With a food truck, you don’t need to have a full staff just a small team that can execute a limited menu quickly. Your taxes are much lower as well.
There is no denying that a brick and mortar requires continuous maintenance, marketing, labor, food costs and more. You have to have consumer volume on a daily basis in order to maintain profitability.
If you start off with a NEW food truck that is under warranty, your maintenance costs are low and productivity can be maximized directly reflecting your bottom line. The average food truck its first year out will do over $125,000. Maintaining furniture, electrical appliances, kitchen equipment, restaurant decor, leaking pipes, etc... all require a lot of effort and money.
3. Food Trucks Attract More Customers
Food Trucks are no longer considered a fad. They are now being used by national brands in markets all across the country.
Inexpensive: Almost all food trucks are pocket-friendly; a meal at food trucks is far more cost-friendly for the public with the average ticket price between $10-$12. Since food costs are low, operational expenses are low, labor costs are low, you can now offer your customers budget-friendly food in a fast-paced environment without comprising quality.
Health and Hygiene: Food trucks are now a safer and healthier alternative to the gut truck predecessor. With growing health consciousness, more and more people are comfortable dining from food trucks.
4. Location, Location, Location
Restaurants rise and die with their location. Around 60 percent of new restaurants fail within the first year. And nearly 80 percent shut before their fifth year of operation. The primary reasons are location and high overhead costs. This is why prime restaurant retail spaces are virtually unavailable. If it’s a new development in a great location, your square foot price is often cost-prohibitive. Ask yourself this, when was the last time you were able to feed 3,000 people in just a few hours? Probably never unless you own a 50,000 square foot restaurant.
Fortunately, Food Trucks are immune to this problem, they are mobile, and you can access a large number of consumers that are there for the sole purpose of eating from food trucks. The mobility of a food truck is the key to its success. You can strategically change your location on a daily or weekly basis depending on foot traffic.
5. Food Trucks Allow You to Build & Expand Your Brand
With a mobile food operation, you can increase your brand awareness in your local market by taking your food to the people. Give them a taste of your dishes and use your mobile food unit as a calling card for your brick-n-mortar.
The key to branding is your vehicle wrap, menu design, and cleanliness of your street food operation. Offer consistent quality food and build your social media followers and you'll see a direct increase in your brick-n-mortar traffic as a result.
While the dynamics of a food truck are entirely different from those of a sit-down restaurant, they can completely benefit one another.
If the revenue growth continues as projected into 2020, there is a tremendous amount of growth opportunity for both the entrepreneur and established brick-n-mortar brands.
If you're looking to start up a mobile food truck in the Greater Cincinnati market and need help getting your operation started, feel free to reach out to us to discover all that the Queen City Mobile Food Truck Association offers.
We can help you every step of the way from purchasing a new or used food truck, trailer, bus or conversion to fabrication, web design, social media marketing, vehicle wrap, location selection, staffing, point of sale systems, equipment purchases and more. We truly are your one-stop-shop for everything food truck related in Greater Cincinnati.