Food trucks have become a popular option for diners seeking a meal on the go. However, are they a good investment?
Whether you are a successful real estate mogul, such as Richard Maize, or a neophyte investor, the low cost of entry can be an attractive reason to consider investing in a food truck. A food truck is generally less expensive to purchase than a brick-and-mortar restaurant. There is also a lower cost for initial equipment, furniture, decor and other supplies that a new restaurant needs. You may be able to save even more by purchasing a used truck and renovating it, though it is important to consider the potential higher maintenance costs.
In addition to requiring less money to get started, food trucks usually have lower operating costs than traditional restaurants. Most food trucks can be operated by one or two people, so the labor costs are lower. The cost for monthly rent and taxes are usually less. Most of the costs associated with operating a food truck deal with kitchen supplies, maintenance, food and fuel.
One of the primary benefits of owning a food truck is that you don’t have to commit to a single location. If the rent for your parking space goes up or the foot traffic in the area goes down, you can simply move to another area. Additionally, food trucks can travel around to events and take advantage of always setting up where the people are, rather than having to deal with seasonal fluctuations that many traditional restaurants experience.
Because food trucks can be operated with a small staff, it is easier to maintain control over the quality of the product being put out. A few negative reviews can sink a new restaurant. It is critically important to make sure every dish that goes out your window reflects on your business positively. Additionally, it is easier to monitor how food is being prepared and stored so that you can avoid any food safety issues. You also have the flexibility to adjust the menu as needed to take advantage of lower food costs or attract new customers with new products.
Ability To Grow Your Following
Only about half of all diners are willing to travel more than 15 minutes to get to a restaurant. A brick-and-mortar restaurant’s appeal may be limited by where it is located. Because you can move your food truck around town, you can convince people that your food is worth seeking out without having to convince them to drive across town to give you a try.
Food trucks are trendy right now. Many diners who might pass by a new restaurant are excited to try a new food truck. Many towns now have Food Truck Fridays and other local events promoting food trucks.
Investing in a food truck is not without risks. However, a food truck investment has many benefits when compared to investing in a traditional restaurant. If you have an interest in the restaurant industry, but don’t want to commit the funds required to start a traditional restaurant, a food truck may be a good choice for you.