FOOD TRUCK FAILURE RATE vs. RESTAURANTS: RELIABLE LOW-COST OPTIONS
If you are considering opening a restaurant at a low cost that will make the most long-term financial sense for you, be sure to look beyond the trendy food truck and consider investing in a franchise.
FOOD TRUCK FREEWAY
If you’re thinking of opening a restaurant, running it out of your very own food truck may seem like an appealing option. Without the right amount of business planning and marketing expertise, many of these operations are unable to survive.
Just because you may be a new entrepreneur doesn’t mean you won’t find success, but operating on your own will put you at a disadvantage. Investing in a food truck may start out less expensive than other small business options, but financial freedom is not guaranteed.
BUSINESS ON WHEELS
A food truck, as self-contained and low-maintenance as it may seem, is still a business, after all. As with any business, it will require a dedicated business plan and reliable funding. Adherence to the various licenses, permits, and regulations are mandatory and vary from state to state (sometimes from city to city); violation of such can result in hefty fines. Health department standards also vary by location and are different for food trucks than for brick-and-mortar restaurants.
Insurance costs also need to be factored in to cover not only the business itself but also the physical truck you are operating.
To open and run a successful food truck, it is essential to know exactly where and how each dollar is spent. Food trucks may fail due to improper inventory management or underestimated costs.
PEOPLE & PLACES
Whether you plan on literally sitting behind the wheel or assigning responsibilities to others, the set of managerial skills required to run your food truck are slightly different than they would be in a more traditional restaurant setting.
Many people who operate food trucks take on almost all of the responsibility themselves which can lead to an overwhelmed owner without the support of a trained and prepared staff. Owners need to maintain a presence, but if the business is to be successful, a food truck will need a trusted team, however small, to execute the owner’s vision.
Food trucks rely heavily on word of mouth. If an owner is ignoring the feedback of customers, bad reviews will travel at lightning speed, beating them to their next location.
ON THE MOVE
It will take most rolling businesses some time to gauge their busiest locations, busiest times of day, and most popular menu items in order to stock and prepare the right amount of inventory to prevent overspending or underserving. Some food truck operators forget to bear in mind the limitations of a truck kitchen, which can be a disastrous mistake. When operating an inherently nomadic restaurant, it is nearly impossible to predict exact business patterns. One of the biggest hurdles when operating a food truck is something that cannot be controlled – the weather. Extreme cold or hot temperatures, snow, and rain can have a serious impact on sales for the day or even the week.
There is almost nothing more essential to the success of a food truck than the number of captivating advertising tactics over a range of mediums. Marketing strategies, including search engine optimization (SEO), Facebook ads, Twitter announcements, Instagram hashtags, and emails, can make or break your business. A food truck that changes locations regularly isn’t going to attract business if no one knows where to find it. Likewise, an outpost that stays parked for a longer stay won’t succeed in a low-traffic area.
SO, FOOD TRUCK OR FRANCHISE?
In the never-ending sea of food trucks that are out there these days, many seem satisfied with fitting in rather than standing out. And while this approach may keep a business afloat in the short term, your truck might end up like the 60 percent that fail within the first three years of business. In order to stand out and really make an impression on people, your concept needs to have a specific “voice.”
It’s not enough to run a food truck or even a food truck with a particular flavor. The market is over-saturated, and consumers are restless.
If you already had the thought of opening a restaurant through a food truck, chances are you’re looking for a concept that will not only bring a return on your investment but will deliver a unique and special experience for your customers. A food truck may seem like a good idea at the outset, but with all of the hidden, unforeseen costs and unpredictability, why not consider an inexpensive franchise with a proven model to help launch you toward success?
Wayback Burgers is a leader in the better burger sector, making it a proven investment for entrepreneurs, experienced and new, to enter the burger restaurant industry. One of the greatest appeals of the brand to new franchisees is that it’s an affordable, well-established fast-casual alternative to other restaurant chains. Wayback Burgers combines the efficiency of fast food with the quality and service of a casual restaurant making it a perfect choice for diners and franchisees, alike.
Whether you are new to the business or an established professional looking to expand your portfolio, Wayback Burgers offers opportunities for all prospective partners.