The Covid-19 pandemic has shifted the way Americans eat, and street food has become more accessible than ever. Owning a food truck gives would-be entrepreneurs the freedom to move from one location to another, and to serve happy, hungry customers virtually anywhere.
You may have seen this business model and may wondered, should I start a business like this? In the article, we will look at some critical reasons why you should become a food truck owner.
Food trucks can be highly profitable businesses, and they allow you to make a living without being stagnant in one place.
If you’ve been thinking of starting a food business, and have been saving up for a while, here are six great reasons to purchase or lease a food truck!
Six Reasons to Become A Food Truck Owner
1. Be Your Own Boss
One of the greatest advantages of owning a food truck business is that you get to be your own boss. You set your own time and schedule without answering to anyone.
Maybe you only want to serve breakfast. You have the flexibility to run your food truck early in the morning and spend the rest of the day marketing and preparing for the next day.
Being your own boss also means that you have the freedom to incorporate your own menu concepts and bring your creative food ideas to life.
2. Find Fulfillment
Owning a business like a food truck will give you the feeling of being fulfilled because you’ll finally see yourself as accomplishing something worthwhile as an entrepreneur. And you’ll be reaching your own business goals.
Running a food truck is also a rewarding venture. Nothing beats seeing the joy and smiles of happy customers who enjoy your food.
If your dream has always been to run your own business or your own restaurant, a food truck business can help you find the fulfillment you’ve been seeking in your professional life.
3. Scale and Grow
The food truck industry is booming. Prior to the COVID-19 pandemic, the industry had an annual growth rate of 7.5%. In 2020 alone, the market size reached $1.2 billion.
Long after the pandemic, the food truck industry will still be growing and thriving. People love the idea of being able to grab a bite to eat while they’re out and about in town or at an event.
The industry’s future is bright, which means that there’s plenty of opportunity for you to scale and grow your business by running multiple food trucks in your area. Startup costs are low compared to a traditional sit-down restaurant, making it even easier to expand your operations.
Even if you have no interest in running multiple trucks, your business can still grow. Your menu can grow, the variety of foods that you offer can grow, and best of all, because you aren’t constrained by a physical location, your customer base can grow without limit.
4. Solving a problem
Starting a food truck business means that you’re solving a problem. You’re helping people purchase easily accessible food and making it convenient to purchase food on-the-go without relying on lower quality, fast food.
And people love food trucks.
A few of the statistics that show a growing need for food trucks are:
- The industry grew at a rate of 7.5% between 2015 and 2020
- Over 24,800 people operate a food truck as of January 2021
- Market size is forecast to grow by 2.4% in 2021
Millennials are a top consumer for food trucks, too. The demographic makes up over 50% of most food truck sales, but there’s also a high level of loyalty. Millennials, when they like the food, are very likely to come back and be a return customer.
5. No cap to your earnings
Running a food truck business may be your life’s dream, but you also need to turn a profit. As a food truck owner, you make the decisions that will dictate how much you earn. Perhaps you’re able to, with permission, park your truck outside of a local sports arena and sell food to people. This could increase your sales and earnings exponentially.
How much does the average food truck owner make?
Revenue can vary widely from one food tuck to the next, but the average revenue is between $250,000 and $500,000. Of course, this isn’t income, so you’ll need to make sure that you sit down and:
- Price all of your food appropriately
- Account for profit margins
- Source ingredients from suppliers willing to lock in prices
Over time, you’ll be able to grow your profits and maybe even make more money than you did as an employee.
6. Escape the 9 to 5
Starting a food truck business helps you escape the 9–5 routine of a typical employee. You may work more, or you may work less, depending on your location and profit margins. Escaping the 9-to-5 lifestyle is great, but owning a truck is not easy.
Owning a business isn’t easy, and when you’re just starting out, you may spend a lot of time on:
- Connecting with suppliers
- Learning accounting basics
- Figuring out inventory
- Getting permits
- Learning where you can and can’t park
You’ll be able to set your own schedule, work the hours you want and dictate when you have time off. While the initial stages of operation may be very time-consuming, there should come a point when you can either delegate tasks to others or streamline your operations.
Running a business is tough. There will be times when you question your decision, but it’s also rewarding. If not handled properly with dedication and passion for what you do, you could find yourself running at a loss.
But you also make all of the decisions, reap all of the profits and have full control of your life.
There’s no answering to a boss – you’re the boss. Instead of helping someone else build a business and reach their dreams, you can help grow your own business instead. Food trucks are growing in popularity, and your decision to start operating one may be the best decision you ever make.