10 Tips To Running A Successful Food Truck in 2020 | Fora Financial Blog
10 Tips To Running A Successful Food Truck in 2020
January 28, 2020

10 Tips To Running A Successful Food Truck in 2020

If you have a passion for food but don’t want to open a restaurant, consider a food truck business. It’s less expensive and a great way to start a career in the food service industry. So, what exactly is a food truck? Essentially, it’s a large vehicle with a kitchen that prepares and serves food to customers.

Food trucks are more popular today than ever before. You’ve likely seen them at festivals, birthday parties, weddings, and other special events. If you’re intrigued by the idea of running a food truck, keep reading for some interesting insight and valuable tips.

The Food Truck Craze Continues

The idea of food trucks began in 1961 when street vendors sold food from push carts in New York. Construction workers, delivery personnel, and garment workers bought meat, sandwiches, and fruit from them. In 1974, the first taco truck, King Taco came to life and led to a successful brick-and-mortar restaurant chain in Southern California.

Since then, food trucks have evolved to feature brightly colored exteriors, often with unique images or designs. Many of them focus on a specific food types such as hot dogs, pizza, tacos, grilled cheese, and cupcakes. For example, The French Quarter is a truck based in New Jersey that offers Cajun-style jambalaya, fried shrimp, and other New Orleans fare. Another unique food truck is Seoul Taco in Missouri, which serves Korean Mexican fusion food.

Food trucks have been growing at an exponential rate since the recession in 2008. These days, they are appreciated by people from all walks of life at public events like festivals and concerts as well as private events such as weddings and parties. As of 2019, there were more than 23,000 food trucks in the United States earning about $1 billion each year.

When they first started to appear in 2008, food trucks were “trendy.” Today, however, they are a mainstream concept that are often preferred over restaurants and fast food.

Inside The Growth of the Food Truck Industry

While the restaurant industry has grown about 2 percent in recent years, food trucks have skyrocketed at an annual growth rate of 7.9 percent. The food truck craze shows no sign of slowing down as people view food trucks as a fun and affordable way to try new foods. It allows them to try a taste of something so they don’t have to commit to a full blown restaurant meal.

More and more people are realizing the growth of this industry and pursuing their own food truck ventures as a result. Here’s why: they require a much smaller initial investment than a restaurant. Startup costs will depend on the state you live in but are typically as little as $30,000 to $40,000. Since it can easily change its location or serve food while it’s on the go, it’s also more likely to earn profits faster.

Although food trucks are seen in most cities, they are particularly popular in places like Austin, Los Angeles, Portland, and Seattle. They are often successful business ventures as they are parked on streets, business districts, farmers market, bars, sports venues, gas stations, and just about anywhere that they’re legally allowed to be.

Tips For Food Truck Success

While a food truck is typically easier and more affordable to start and operate than a restaurant, it does take time and effort to ensure success. There are certain strategies that can help you stand out from other food trucks, gain new customers, retain loyal ones, and maximize your profits. Let’s dive deeper into some of the best tips for how to start a successful business in this industry.

Perform Extensive Market Research Beforehand

Before you buy a food truck, take the time to do some market research. Use the internet as well as outings to various places with food trucks to help you out. Your research should help you uncover the answers to questions such as “Is there an emerging food trend in your town or city?,” “Do certain areas need food trucks?” and “Is there an abundance of a certain type of food truck?” If you know the answers to these questions, you’ll find it easier to make strategic business decisions.

Choose Your Food Truck Type Wisely

When it comes to the type of food truck you can run, the options are endless. You can opt for pizza, barbeque, sliders, tacos, grilled cheese…the list goes on.

So, how do you choose the perfect food truck type? Your market research will steer you toward the right direction. If you discover that there are plenty of grilled cheese food trucks in your local area but not enough trucks with ethnic cuisine, you’ll know what you need to do. Try to choose a food truck that not only allows for less competition but is also affordable and suits your personal interests.

Make A List Of Necessary Supplies

You’ll need a variety of supplies to open and operate your mobile food business. Rather than just buying things whenever you see them or feel like it, make a list of what you need. Your list will likely include disposable gloves, aluminum foil, containers, dishes, utensils, cleaning supplies, and safety supplies.

Once you’ve nailed down your list, you can shop around to find the best deals.Most likely, this simple strategy can save you a great deal of time and money.

Buy The Right Truck

Not all food trucks are created equal. Believe it or not, food trucks range in price from $50,000 to $250,000. In addition, you can buy them new or used. While new trucks can be customized to meet your particular needs, they’re expensive.

Used trucks, on the other hand, are cheaper than new ones but come with a higher risk for expensive maintenance. Another option is to lease a truck so you can test out your venture and spend less cash each month. When you figure out what type of food truck you want to buy or lease, go to a reputable food truck dealer like Prestige Food Trucks, Cruising Kitchens, or FoodTrucks.net.

Incorporate To Protect Your Assets

You could start your food truck business as a sole proprietorship and incorporate it down the road. But, the wise move is to incorporate from the start. Since you’ll be selling food products, which can make people sick, incorporating can protect your assets in the event of a lawsuit.

First, decide on a name and register your business in your state. Then, obtain an Employer Identification Number (EIN) from the IRS. Once you’ve done both, you may want to consult a CPA or attorney to assist you with the process.

Set A Solid Budget

A solid budget is a vital part of a food truck business plan. To set one, write down the amount of money you want to spend for each component of your business. These components may include kitchen equipment, staffing, vehicle maintenance, and marketing.

Keep in mind that the market, regulations, menu changes, and other factors will likely cause you to change your budget over time. Also, make sure your budget is realistic and allows you to take on as little debt as possible. An unlimited budget can lead to financial hardship in the future.

Learn Some Creative Marketing Tactics

Marketing is one of the keys to business success. Take the time to design a creative marketing strategy that involves multiple tactics.

Try digital marketing strategies such as Facebook ads, Search Engine Optimization (SEO), and email marketing. Pair them with traditional marketing initiatives like direct mail and event marketing. Your marketing efforts should be ongoing and will evolve over time as you learn what works and what doesn’t.

Select Locations With High Volume

As a food truck owner, you have the freedom to take your business just about anywhere. Think about where your ideal customers hang out the most. Then, drive there and see how much traction you get. If you don’t attract as many customers as you thought you would, no problem.

Next, drive to another high volume location and see if things improve. Typically, food trucks perform optimally at festivals, business districts, and food truck parks.

Keep An Eye On Your Reviews

In present day, reviews can make or break your food truck business. For this reason, it’s in your best interest to monitor your reviews regularly.

If possible, respond to all reviews, good and bad. This way prospective customers who search for you online will know that you value your customers and are always looking to improve. When you’re first starting out, you may want to offer an incentive so that customers review your food truck and you build trust online.

Leverage Social Media Following

Social media marketing can do wonders for your food truck business. Create compelling Facebook, Twitter, and Instagram pages and update them often. Share your hottest menu items, where you’ll be at various times, deals, and giveaways.

Get people excited about your food truck so they become a fan or follower and expose your content to their network. Social media, especially Facebook is also a great place to ask for customer reviews.

Final Thoughts On Food Truck Success

A food truck business can be an exciting way to become an entrepreneur, earn a living, and make a positive difference in your community. However, just like with any business, it takes hard work, dedication, and patience. As long as you select the right financing option and follow these tips, your chances of success are very high. Best of luck!

At Fora Financial, we strive to help business owners succeed. Sign up for our cta-newsletter today for more small business tips.

Frequently Asked Questions

What is a food truck?

A food truck is a large vehicle which prepares and serves food. Essentially, it’s a “restaurant on wheels.”

Why do people like food trucks?

Food trucks have increased in popularity in recent years because they allow people to try new foods in an easy and affordable way.

What are the advantages of opening a food truck?

If you open this type of business, you’ll have a much lower initial investment than you would if you start a restaurant. Also, you’ll likely profit much faster and be able to experiment with different locations.

Is the food truck industry popular?

While the food truck concept started in 1961, has skyrocketed in popularity over the past decade. It’s grown 7.9 percent as opposed to the 2 percent growth rate of restaurants.

Fora Financial

Editorial Note: Any opinions, analyses, reviews or recommendations expressed in this article are those of the author's alone, and have not been reviewed, approved, or otherwise endorsed by any of these entities.

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Fora Financial is a working capital provider to small business owners nationwide. In addition, the Fora Financial team provides educational information to the small business community through their blog, which covers topics such as business financing, marketing, technology, and much more. If you’d like to see a topic covered on the Fora Financial blog, or want to submit a guest post, please email us at [email protected].