Starting a food truck business before opening a restaurant is becoming a popular trend in the food industry. While both business models have their advantages, there are several reasons why starting a food truck first can be a smart move. In this article, we will explore five reasons why it’s better to start a food truck before opening a restaurant.
Before diving into some of the benefits of starting a food truck first, let’s dive into just a few items that you will have to complete no matter what.
This is essential for any new business and to secure funding from an investor or financial institute. Luckily, we have a guide on creating a business plan for your food truck that can get you moving in the right direction.
Before you can open shop you have to get a business license from your local health department and government agencies. You may also need to get a special license from the Department of Transportation as well. Check with your local small business center to get specific information for your city. Likewise, you also need to get food truck permits from your local health department and pass inspections.
For many food truck owners, marketing may be the last thing you want to think about. You just want to be able to cook the food you love for people who love it. Outside of prepping food and finding venues to host your truck, marketing yourself is just another headache. We at Food Truck Lineup understand this and are here to help but this is the final vital piece you should account for in your business plan. This can include setting up social media accounts, building a website, attending networking events, and reaching out to local news and radio stations as well as marketing agencies about opportunities to advertise.
One of the most significant advantages of starting a food truck business is that it has lower startup costs compared to opening a restaurant. A restaurant requires a significant amount of investment in real estate, kitchen equipment, and interior decoration. On the other hand, a food truck requires a smaller initial investment for the purchase or lease of a food truck, as well as licensing and permits.
In addition, a food truck allows you to test your concept and build your brand before committing to a more significant investment. With lower overhead costs, a food truck owner can focus on building their customer base and perfecting their menu.
Another advantage of starting a food truck business is the flexibility and mobility it provides. Food trucks can move to different locations, events, and festivals, allowing for greater exposure and access to new customers. This mobility also provides an opportunity to test out different markets, gather feedback, and adjust your business strategy accordingly.
Additionally, food trucks can be set up quickly and easily, providing greater flexibility in terms of scheduling and responding to customer demand. With a restaurant, you are tied to a single location, which can limit your reach and impact on potential customers.
Food trucks also have lower operating costs compared to restaurants. With a food truck, you have fewer expenses such as rent, utilities, and maintenance, allowing for greater flexibility in pricing and menu offerings. Additionally, the smaller size of a food truck means you can operate with a smaller staff, further reducing your operating costs.
On the flip side of this, you will have to rent space in a local commissary or commercial kitchen. Commissary kitchens are regulated by health authorities to ensure that they meet specific standards for food safety and hygiene. They are required to maintain proper sanitation, temperature control, and storage conditions to prevent the growth of harmful bacteria and other contaminants.
For food truck businesses, a commissary kitchen is an essential resource as it provides a location to prepare food and store ingredients, as well as a place to clean and sanitize equipment. Many cities require food truck businesses to use a commissary kitchen for food preparation to ensure that all food is prepared in a safe and sanitary environment. Depending on the kitchen you may be limited on when you can reserve space and the cost to rent can always vary. Make sure you account for this in your business plan.
Starting a food truck business also requires fewer permits and regulations compared to opening a restaurant. While there are still specific health and safety regulations that must be met, food trucks have fewer zoning and permitting requirements. This can make it easier and faster to get your business up and running.
Finally, starting a food truck business allows for greater creativity in menu development. With a smaller kitchen, food truck owners are forced to be creative with limited space and equipment, resulting in unique and innovative menu offerings. This creativity can set your business apart and build a loyal customer base.
Additionally, food trucks can cater to niche markets, such as vegan or gluten-free, which can be challenging for restaurants to accommodate. With a food truck, you have greater flexibility to cater to specific dietary needs and preferences.
In conclusion, starting a food truck business before opening a restaurant can be a smart move for aspiring food entrepreneurs. With lower startup and operating costs, greater flexibility and mobility, easier permitting and regulations, and opportunities for creative menu development, a food truck business can be an excellent way to test your concept, build your brand, and establish a loyal customer base.
