A Step-by-Step Guide To Starting A Food Truck Business

New ideas are always welcomed. One such exotic idea is launching a food truck business and turning it into a profitable side hustle or your mainstream of income.

The last decade witnessed exponential growth in the food truck industry. In the US alone, there are more than 32,000 food truck businesses. That is a whopping high number.

A food truck business is an affordable option if you want to become a food entrepreneur on a limited budget. It’s a large enough vehicle that can support a practical kitchen, and also looks great.

The outlook of the truck matters a lot too. It plays a huge role in depicting your business in a positive way and bringing in lots of customers. Thus, visual appeal is something you should focus on a lot.

So, if you’re wondering how to start your food truck business, and what food truck wrap can make your business stand apart, we’ve got you all sorted.

We’ll be discussing different strategies, the costs of launching a food truck, and much more. Keep on reading to get a greater insight into the dos and don’ts when launching your food truck business.

Initial Set-up Costs

When you plan any business, you need to have a clear and concise business model that’ll help you leverage your skills and put them to great use. A business model is basically your plan for making a profit.

It helps you identify the key areas you can target in your food truck business and make plans for unexpected expenses, target market, and how to sell your food items.

Moreover, you should also come up with an effective unique selling proposition that’ll set you apart from competitors in the area.

Let’s look at some initial costs that you need to keep on your bucket list when planning your food truck business.

1. The Food Truck

A food truck business needs to have a truck. So, a huge chunk of our investment will have to go into the truck itself. The cost of the truck can vary because of different features. It also depends on the size, model, and condition of the truck.

If you plan on buying a used truck, you’ll also have to factor in the repair charges and other maintenance charges that may arise.

2. Equipment and Staff

You’ll need to have equipment and staff on board for the food truck. Equipment can include necessary items like a commercial kitchen, freezer, deep fryer, and other cooking utensils.

The specific items will depend on your menu and what you plan on offering. For instance, if you plan on opening a fast food truck business, you would have to get an ice cream machine.

You’ll also have to set aside a budget for the staff and how many people you plan to hire. Expenses like wages, benefits, and taxes will have to be factored in.

3. Miscellaneous expenses

The initial setup cost can go on as long as you take it. But, other miscellaneous expenses can include the following:

Fuels costs for the truck
Repair and maintenance costs
Costs for signage, branding, advertisements, and more
Staff uniforms
Inventory etc.

Your total cost can also depend on the business size, location, and other factors.

Making an effective food truck business plan

Decide on a food truck name and focus on the plan. An effective food business plan can help you outline the details of your business and help you reach a breakthrough. It helps you align your goals, strategies, and financial projections.

Therefore, it’s a vital tool for a food truck business that’s just starting out. It helps you grow in the right direction. Moreover, ensure to choose the right slogan for food truck, as it is a great impact on the customers. So, let’s have a look at some tools you need for your business.

1. Executive summary

An executive summary is like a brief overview of your business that walks you through all the expenses, goals, business concepts, and target market. It should be properly structured.

2. Competitive market analysis

Before you start anything else, it’s important to analyze the market and see what others in your arena are doing. This section will help you explain your target market, what age groups you plan on targeting for your food truck business, and your advertising strategies. It should also provide information about purchasing habits, demographics, and the local market.

3. Business Description

This part of your plan has to depict your food business and everything you wish to tell your customers in a positive way. It has to describe what food items you offer, what type of cuisine you offer, and what edge you have above others offering the same menu.

4. Management Structure

This section has to detail everything about your management. It includes the key responsibilities and roles of everyone involved in the food business, the shares and percentage of ownership, and the number of people working for the business. You also have to factor in your employees, their experience, salaries, and prior experience.

5. Operations Plan

Operations will describe your everyday routine, what hours you’ll remain open, the location where your food truck will be placed, and the staffing plan.

6. Products You Offer

A food truck business is going to offer food. However, this section will help you to fill the gap your food will bring to the market. It will also list new food items and address market trends and requirements.

7. Marketing and Sales Strategy

You have to point out everything in this section about marketing. From the food truck wrap you plan to use to the social media platforms that’ll help you grow online. These include online advertisements, paid ads, websites, and more.

This section is also about your offline marketing strategies. How you use signage to build a loyal local audience, what type of food truck wrap will help you advertise your food truck, and more.

Lastly, you also have to list the menu prices, see what prices others offer, including the minimum sale requirements, and stay with the seasonal trends that might affect sales.

8. Legal and Regulatory Compliance

This section should detail any legal and regulatory requirements that your business must comply with, such as permits and licenses. We’ll talk in detail about this in the section below.

9. Financial Projections

Having an accurate financial estimation may be difficult for businesses with no prior experience. However, you should include expected expenses, a break-even analysis, and cash flow projections that’ll help you analyze how to grow your business.

10. Appendix

Not every food business requires an appendix, but it helps to factor in any miscellaneous charges that may be important to investors or your partners. The information may include any legal documents, financial statements, and resumes of key personnel.

Obtain license and permits

Licenses and permits are very important when you open up any business. You wouldn’t want to face any legal obligations. The specific requirements vary from place to place, but we’re going to look at some general requirements.

1. Food service permit

Your local health department will issue the food service permit. Food truck owners have to apply for a seller’s permit in most states. This permit helps you to purchase food and other relevant equipment without having to pay taxes and at wholesale prices.

2. Vehicle license

A food truck operates in a truck, which is why obtaining a vehicle license is very important. The license requirements vary from state to state. So, you may have to obtain a commercial driver’s license to legally drive the truck.

3. Fire Safety

Operating a food truck means you’ll have access to fire sources like gas or electricity. That is why it’s important to obtain a fire certificate through the fire department and fill in all the requirements.

4. Mobile Food Vendor Permit

Most states require food trucks to get a permit that lets them operate in public areas and streets. You’ll have to take care of restrictions on where you can park your truck and where you cannot.

5. Insurance

Insurance is an important certificate for some states. Food trucks should have liability insurance to protect against accidents or injuries that may occur accidentally.

6. Business permits

Businesses like food trucks need to obtain certain licenses like a DBA and a state sales tax permit. You can also contact professionals in finance to help you decide the best legal structure for your business.

7. Employee Identification Number (EIN)

Every food truck needs some employees. So, you’ll need to obtain an employer identification number, which is issued by the IRS and identifies a business entity. It also helps you to establish a business credit history through a business bank account.

Purchase equipment and supplies

Equipment and supplies vary from business to business. It’s important to consider the type of cuisine you plan on offering and how many customers you expect. You might also have to take care of a seating place and purchase furniture for the seating place.

Let’s take a look at some common equipment and supplies you’ll need.

1. Cooking equipment

A grill is an important piece of equipment when it comes to preparing food items like hot dogs, sandwiches, burgers, steaks, and more.
You’ll also need a stove and a fryer. A fryer is important for frying different items like fried chicken, nuggets, French fries, or any other food item. A stove is an obvious piece of equipment used for cooking almost everything.
Another important thing is an oven. If you plan on offering baked items, getting an oven is crucial. You might also want to get a microwave.
Refrigerators and freezers are also important to keep food items cool. Other items like blenders, mixers, beaters, food processors, utensils, and other tools are also necessary.

2. Cleaning supplies and First Aid

Cleaning supplies like soaps, sanitizers, dish wash, paper towels, and other items are very important for maintaining hygiene in your food truck.

Keeping a first aid kit in case of an emergency is also important. Items like fire extinguishers and proactive gear should also be part of the food truck.

Designing and Branding the Truck

Designing and branding are perhaps the most important elements for your branding. They help establish a recognizable visual identity by using color schemes, custom fleet graphics, logos, and more.

The primary goal is to attract potential customers and offer them something valuable. Thus, the design process is super important. You also have to consider the target audience, the purpose of your food truck, and the overall aesthetic of your brand.

You should also ensure consistency across all marketing and communication channels. These may include signage, decals, wraps, and paint, as well as marketing materials like your website, business cards, flyers, and brochures.

1. Food Truck Décor

Your food truck has to have a visual appeal. Without the proper aesthetics, it won’t appeal to the audience, and you’ll end up making no sales.

Using a commercial truck wrap for your food business is a great way to establish your branding and attract customers. You can use different options like a full truck wrap, a partial one, or any other option that suits the tone of your food brand.

Let’s look at how different types of food truck wraps can help build a loyal customer base and establish a brand personality for your food truck business.

2. Full food truck wrap

Covering your entire truck in a food truck wrap is a great way to advertise your food truck. It helps with maximizing your visibility to potential consumers.

A full food truck can also be customized. You can get creative with your style and include images, logos, different colors, and text to the wrap that align with your brand and make you stand out.

Food truck wraps are also very durable. You can also include custom fleet graphics for the wrap to stand out. Another great benefit is you can easily change the wrap. It’s easy to update, so if you ever want to change your branding or marketing message, using a food truck wrap can be a great option.

3. Partial truck wrap

A partial truck wrap will work just as great as a full truck wrap. However, you’ll miss out on the opportunity to use different graphics, add more text, or utilize all the leftover space. But it’s still a great option if you are on a tight budget.

How to Choose a Food Truck Wrap

Choosing a suitable food truck wrap is very important. In most cases, a vinyl truck wrap is the best choice since it offers great visuals and is very durable.

You’d also want to choose something that aligns with your food brand. Include eye-catching graphics, and clear and legible text, and use bold colors to make your food truck stand out.

You can also add some lights to the food truck wrap. However, it’s also important to make sure that the food truck wrap doesn’t cover the license plate and complies with local regulations.

The last factor you’ll have to consider is the cost of the food truck wrap. Choose something that offers a quality vinyl truck wrap but doesn’t make a huge impact on your wallet.

It’s always a good idea to work with a professional company that can help you design and install a great custom cart wrap.

Choose a POS system

A food truck always needs to have a mobile Point of Sale (POS) system. A POS system allows you to accept credit card payments directly from the truck. However, you will have to get an internet connection for this purpose.

A POS is an essential tool for food trucks. It helps you to process transactions easily and manage your sales and inventory as well.

Let’s look at some applications where a POS system helps.

Inventory management. Keeping a track of your inventory lets you predict how many supplies and ingredients you’ll need for a given day. It also helps to track finished products and when to stock them.
A POS system also helps with sales tracking. You can generate reports using your sales. These reports help to identify your best-selling food items and also items that aren’t doing well on the menu.
Staff management. A POS system also helps with managing your employees, tracking their working hours, scheduling shifts, and even making payroll payments.
Mobile payments. The most widely used application for POS systems is mobile payments. Food trucks often operate in places where payment methods like debit cards and credit cards may not be used. In that case, a POS system allows customers to make payments using their smartphones.

Conclusion

Starting a food truck business requires a lot of planning. You have to keep in mind the market trends, research your competitors, devise a great menu, gather supplies, hire staff, get permits and licenses, and take care of a lot of other things.

However, the most important factor is your branding. You have to take care of how the food cart will look from the outside so it can attract enough customers. The right branding can set you apart from your competitors and help increase sales.

That’s where a captivating custom food truck wrap helps. A professional team of a sign company can help you design and create a fully customized food truck wrap that is durable and very appealing. They make sure the food truck wrap aligns with your business goals and helps you reach the right target customers.

Author bio:
Sophia is a content writer, and her specialty is in the signage industry. She is currently working with a professional signs and wrapping company, Signs NYC, as their content writer. She loves spreading her experience in the signage industry through her words on different platforms.