4 answers

What are the best and worst risks of owning a food truck?

Updated

I'm a sophomore who has the dream of opening a business in the culinary but I want to know how much work and sacrifice will go into such a thing. I have the skills in cooking, marketing, and money management so what else will help me prepare for such a large scale passion project? #entrepreneurship #restaurants #hospitality #food-trucks #cooking #restaurant-management

4 answers

Kim’s Answer

Updated

Congratulations Karlee on having this dream. I think you have already captured many of the skills needed to be successful. I would also encourage you to seek out zoning or health code guidelines. Finding the right truck and the right menu will be important; but knowing what legal specifications you must meet should also be considered.

Nathan’s Answer

Updated

Hi!

So here are pros and cons of owning a food truck:

  • Pros
  1. Opening a food truck is cheaper, more affordable than opening a restaurant.
  2. You can choose when and where to operate your business (most of the time).
  3. You can create your own menu and change it up whenever you want.
  4. Lastly, you are the only one in charge. Therefore, you have the absolute say on what goes and what does not go.
  • Cons
  1. It costs a lot of money, therefore starting one can be difficult if you do not have large funds.
  2. Workspace is really small, so if you have claustrophobia, small space will not be possible to handle at all.
  3. You have to abide by the local zoning laws set by the city, so plan ahead and have some extra money to pay for permits and parking fees.
  4. You will have to remodel your food truck (again, that will cost you a lot of money).
  5. Taxes. Loads of taxes.

Conclusion:

It can be really risky with the cost and everything, but if you still want to do it, then I wish you the best of luck!

Sources:

  1. https://mobile-cuisine.com/legal/pros-cons-food-truck-sole-proprietorships/
  2. http://www.foodonatruck.com/pros-and-cons-of-starting-a-food-truck/
  3. https://www.forafinancial.com/blog/industries-we-serve/pros-cons-opening-food-truck-business/
  4. https://mealsonthemove.wordpress.com/2017/01/28/what-are-some-advantages-and-disadvantages-for-owning-a-food-truck-in-the-food-truck-industry/

Tony’s Answer

Updated Hawaii, Hawaii

Great to hear that you are thinking of being an entrepreneur! It is great to see young people "going" for it and doing their research on something that they are passionate about. Speaking from experience, aside from the costs to buy/lease a truck, getting a name/marketing, setting a menu, getting your finance/accounting/business plan ( there are many other factors that you should think about. County health codes need to be adhered to (truck specs, food safety training, fees, taxes, use of a commissary and costs associated, yearly updates/renewals/inspections), local city codes/license to do business there, gas/diesel costs, repair facilities for your equipment, hiring/keeping employees.  You also have to factor in costs of being down if your truck is down, your employee doesn't show up, weather, ingredients not being available, etc. Also, be prepared to make mistakes that cost you money, just learn from those and move forward. Failure also is a learning tool, but don't give up, just evolve. Ultimately doing something that you love and it won't be "work"... Good luck

Tony recommends the following next steps:

  • contact your local health department for rules on food truck
  • contact each city that you are servicing to see if you need a license to do business there
  • get a business plan together and buy in from business parks to do business at their locations
  • Look into festivals/events - although it'll cost $ to participate, it will probably be worth your time/$ depending on the size of the event

marcelino’s Answer

Updated San Antonio, Texas

These are all wonderful tips and advice. I would add that you should research the right niche for your services and product.