Everyone wants to be successful in their chosen field, and that includes the people who become part of the growing food truck industry. Unfortunately, plenty of would-be food truck operators have left the business because they weren’t properly prepared when they started out. Here are six reasons that food trucks fail. If you want to be part of the food truck industry, consider each issue before you launch your business.
• Not enough money: Being undercapitalized is probably the biggest reason that any new business fails. You need adequate funds to operate, plus a little stashed away for unexpected events and emergencies (a normal part of doing business). Business owners must be prepared for anything. Keep cash on hand to fund your start up, as well as those difficult days.
• No brand: Check out the various food trucks that make the news. They each have a logo, a sharp look and an identity that customers recognize. Some have a catchy name that is easy to remember. Your food truck needs the same things: a consistent look, a logo, a catchy name and all things that attract customers.
• Lack of HR skills or policies. Every business operator must establish policies for employees and train them to perform their jobs properly. If employees don’t offer good customer service, make change properly or following health and cleanliness requirements, your business will suffer.
• No written recipes. Of course, you’re a great cook, but if your best recipes are filed in your brain, your operation is in trouble. Put your recipes in writing and follow them exactly. Standard and consistent recipes allow you to properly project your ingredient needs, determine price points, order ingredients, control waste and manage costs.
• Not on the premises. If you plan to start your business and then turn it over to a manager, you are in trouble. Absentee owners are not in control of their own business. You must to be on hand each day to ensure that your food truck functions properly.
• Don’t know the market: What do customers want? Where is the best place to park your food truck to reach a large number of people? You best know the answers to those basic questions before you head out on the road.
If you don’t have these issues control under control, you may want to talk to an experienced consultant. Learn the secrets of running a winning food truck operation from Mike Mikhail, owner of an LA food truck fleet. Call Mike at one of his food truck operations:
Hang 10 Tacos – 855-5-Hang-10
Greenz on Wheelz – 855-6Greenz
The Hungry Nomad – 877-NOMAD-10
Need catering? We can provide everything from sandwiches, wraps and salads on wheels to a deluxe dinner for hundreds. Give us a call.