If you want to get into the food business in today’s world, things just got cheaper for you. No more do you have to spend tons of money on getting the real estate, renovating it and hiring cooks and employees. The concept of food trucks just eliminates all of that. Food trucks work on a smaller scale than restaurants, but once you become popular, there is no lack of customers. Economically speaking, food trucks are much cheaper than hosting a restaurant.
Here are a few reasons why.
– Employment: You won’t be employing more than four to five employees. Some of them will be cooks, while the others will take and give the orders. Since your employees won’t be working full time, you can pay then $1,000 a week.
– Mobile Kitchen: The advantage of a mobile kitchen is that you save up on space and won’t have to pay for any real estate.
– Expenses: Once again, since you are working on small scale, the cost of supplies won’t be excessive. Most food trucks have an average of $1,000 for food and supplies and $120 for gas.
– Sale: Popular food trucks are known to sell at least 200 dishes within three hours on an average.
– Starting Up: The biggest cost for starting up a food truck will be purchasing the truck. Depending on which brand you buy and the modifications you make, it will be anything upward of $50,000.
– Break Even: Majority of food trucks have revealed that they need to make over 100 sales in day to break even on daily basis.
Do the math yourself and see how food trucks have faster ROI compared to a restaurant with seating.
Why are they Popular?
No matter how many food trucks you see around, the food truck market is still unsaturated and untapped. The market is looking for quick food which is healthy and at the same, gives them a unique experience. A unique experience means food which has different tastes and is not the same old boring burger. Many food trucks have broken of the traditional norms of food and have experimented with their own recipes. Edmonton barely has any food trucks when compared to the hub of food trucks – Portland.
The growth of food trucks has led to a spurt in street food culture wherever it has propped up; you would have noticed it in Edmonton – customers waiting in lines at food trucks and skipping traditional full-fledged meals at restaurants for bites at a food truck.
It is simply because of these points – the economy and the popularity of food trucks – that food truck franchising is such a successful idea.
Franchising in simple terms refers to setting up a business under a brand name, business model and recipes of an already successful one; in return you have to pay a percentage of your revenue to them.
There are many food enthusiasts and business entrepreneurs out there who are willing to open a food truck. If you have a successful food truck with a good brand name, you can decide to franchise the name around. It is because of the lower cost that food enthusiasts and business entrepreneurs will be able to afford to open a food truck under your brand name.
The market out there is unsaturated. Edmonton has a growing food truck scene, but it is small. All over the city, residents wouldn’t have tasted your food, but as your name grows they will want to. By franchising, you will get more customers and more customers are always good for business.
For example, Drift, a popular food truck in Edmonton is only found in one location – Jasper Avenue. This means customers will have to come all the way to Edmonton’s centre to buy their food. For many professionals searching for a quick lunch, this is not possible, but if Drift had a franchise with many food trucks around the city, then… you can guess for yourself.
Franchising in the food truck business is something that has not been done. Most successful food truck owners have thought about it, but none have ventured out into it. Though food truck franchising is an idea that still has to kick start, it can be a success bigger than any fast food chain. Today’s markets are saturated with brick and mortar fast food chains, while traditional restaurants are not quick enough and the food truck world seems localized to only a few areas. A franchising is what is needed to start the boom and capture a market that is needs a new twist.Original Source