Due to the sudden rise in the amount of money spent by youngsters, middle-class expenditure, lifestyle mobility, and the need to have food on the go, the food truck business model is gaining popularity.
This particular industry has a bright future, according to market researchers. They believe the revenue growth rate will be around 3.7% in the next five years. If things work out as expected, it’ll hit the $1.7 billion mark.
If you’re planning to start a restaurant business, you should rethink the matter and opt for the mobile variant instead.
Some people tend to get confused between food carts and trucks, but that subject isn’t within the scope of this topic. Instead, you should check why running a mobile restaurant is better than a regular one.
The initial investment is low
Those running a ramen food truck business describe it as a surprisingly profitable venture. After all, the initial investment is much lower compared to a regular restaurant.
The money you’d have otherwise spent on décor and furniture, you can spend on mission-critical business operations, such as menu engineering or marketing. You’ll only need to make a significant investment in the truck.
It’s also possible to avoid it if you take advantage of the ever-growing food vehicle rental business.
The operational cost is low
If you own a restaurant, you’ll inevitably need to pay for expensive utilities, hire & maintain staff members consisting of cooks, cashiers, servers, kitchen managers, cleaners, & others, and even pay property taxes.
Before you even realize what’s happening, hidden costs and operational expenses will bleed your reserved resources dry.
Conversely, the operational costs of running the food truck include paying for the raw materials, gas, and a few other suppliers. Of course, you may have to do everything else yourself, but if you can afford it, you may consider hiring a small team.
This mode of operation will even reduce your taxes. Now, you may want to know about maintenance. Sustaining everything in a restaurant will involve paying attention to the kitchen equipment, establishment décor, furniture, electrical appliances, plumbing, and whatnot!
Maintaining a mobile kitchen, on the other hand, involves undertaking simple repair projects from time to time.
It may seem unlikely, but a ramen food truck will attract more customers than a specialty restaurant serving the same food for the following reasons.
- The food served at these mobile establishments is cheaper. The price, however, never dictates the quality of the food. Then again, it depends entirely on the business owners and the steps they take to produce their products.
- Food prepared and sold by a mobile vendor is safer and healthier compared to other types of street food.
If you serve food to your customers through a mobile establishment, you’ll get to experiment with various locations. You’ll make more sales in some areas than others.
For instance, if you set up your shop in a business district or an educational facility, you’ll have more customers. You can also take your vehicle to a carnival.
In other words, you can shift to a different location whenever you feel that the current area you’re operating in isn’t yielding results. Building a brick-and-mortar restaurant, on the other hand, will restrict your mobility.
Instead of going to your customers, you have to come up with promotional tactics to bring them to you.
Brand-building and expansion
When you have a mobile food van, you can build your brand at a smaller level before expanding into something more significant, such as a conventional restaurant. In reality, you may never have to construct a brick-and-mortar restaurant if you manage to franchise your trucks.
Food truck dynamics are entirely different from the ones of traditional restaurants. Everything from analyzing the best location, introducing new recipes, and modifying business plans to altering the menus will be much easier compared to running a restaurant.
Food trucks bestow better control and flexibility upon the business owner.
It’s also the best avenue for entrepreneurs as they get to research and experiment with the business model of their choice before they attempt to build a sit-down restaurant that comes with more investments and risks.
The space-related constraints associated with food trucks don’t allow business owners to hire too many people. As you’ll be serving fast food mostly, your offers will be fewer compared to a restaurant that gives its customers multiple cuisines to indulge in.
You shouldn’t look at it as a drawback. After all, if you don’t have to hire multiple chefs, you can keep your operational expenses on the down low. You can keep the business ongoing with one chef and one or two servers to serve in multiple rows.
Now that the future of food trucks looks bright, you should consider going down this road, regardless of where you reside. If the revenue growth rate doesn’t dwindle, the scope for growth is tremendous for entrepreneurs and established business owners.