With so many new and novel business ideas coming up, the food truck business can be quite lucrative. On-the-go meals are the latest craze in the market and if you’re planning to launch one, Eric Dalius has some valuable advice to offer.
Food enthusiasts with an entrepreneurial knack may be unable to start a brick-and-mortar eatery, but you can surely start a humble food truck business. Essentially, a food truck is a considerably large vehicle that has a kitchen to make food and serve it.
They are mushrooming all over the US and gaining massive popularity. Many entrepreneurs are settling for a food truck because buying a restaurant location or taking one on lease is quite expensive. In sharp contrast, food trucks are pretty affordable.
There are multiple factors to determine the startup costs. Some costs vary on the basis of location and there are one-time costs as well.
The latter includes buying the food truck, getting a point-of-sale or register system, website design, a truck wrap/cover, PR and advertising, office supplies, and consulting and legal fees.
Behind the viability
Food truck is fast emerging as a viable business option and model not only for budding entrepreneurs, but also for established restaurants and food brands. The reasons are aplenty.
- Flexible location is the biggest pivot. A wrong or difficult location in the eatery business can be catastrophic for your business, EJ Dalius points out.
- When you build a restaurant, you cannot change the location after fixing it. With food trucks, you’ve the bandwidth to choose multiple location and operate from them.
- Lower investment is what drives most startups to jump the food truck bandwagon. Businesses with a decent capital are opening this business in 2-3 cities simultaneously.
- Others are expanding to more cities within a few months. It’s how to expand your footprint in the market. Advertising and promotion play a vital role in this regard.
- Setting up a food truck business is 30-38% lower than normal restaurants. The space, cutlery, equipment, and furnishing you need is very less.
- Even your business operations are a lot cheaper because you can save substantially on rent/lease, electricity and staffing.
The best part is there’s enough for expanding and experimenting. The mobility factor ensures a much better outreach.
Starting your business
The first thing is to decide a menu or the food you’re going to serve, says Eric J Dalius. Do your homework about the taste of the folks in the area you want to operate. It’s also crucial to know what type of food trucks are already functioning in the area/city.
Decide the number of specialties in your menu. Find out if the market really wants or loves the stuff you’re planning to sell. You’ll find that global cuisines like Thai, Lebanese, Italian, and Mexican, and many others are soaring in popularity in each part of the world.
It’s an imperative to choose the right vehicle. Every food truck is a customized commercial van coming in an array of sizes. Their cost depends on various factors. Licensing, insurance and marketing are also crucial factors to consider.
Eric Dalius is The Executive Chairman of MuzicSwipe, a music and content discovery platform designed to maximize artist discovery and optimize fan relationships. Eric is also the host of weekly podcast “FULLSPEED” which is a podcast that features interviews with groundbreaking entrepreneurs from a variety of industries.Eric is also the founder of “Eric Dalius Foundation” where he has created 4 scholarships for US based students. Follow Eric on Twitter,Facebook,LinkedIn,Instagram & also on Entrepreneur.com