How to Start a Food Truck Business in 9 Steps

Popular opinion suggests food trucks are a simple but lucrative business. Factors like location, pricing, and customer demographics make the industry complex to navigate in real life. Business owners must understand how they will succeed before getting started.

The “starting a food truck with no experience” is an article that will teach you how to start a food truck business in 9 steps. It will also show you the steps that are required to get started, and what your first step should be.

A competitive and attractive idea, a sound business plan, a fully equipped food truck, and a good marketing strategy to expand your client base are all required to establish a food truck. A food truck is a terrific business idea if you’re searching for a way to make money. With initial expenditures of roughly $40,000, successful food trucks may earn in more than $500,000 per year.

Starting a food truck takes three to twelve months and involves the following nine steps:

1. Look into the legislation and food trucks in your area.
2. Pick a name and an idea.
3. Open a bank account and register your company.
4. Raise money for your food truck by holding a fundraiser.
5. Obtain all necessary licenses, permits, and insurance.
6. Get your food truck now!
7. Invest on equipment and supplies.
8. Staffing and training
9. Promote your food truck on social media.

Let’s look at each stage one by one:

1. Find out about local food trucks and the laws that apply to them.

According to the Restaurant MBA, 60 percent of food truck enterprises fail within three years. The difference between a successful food truck and a flop largely boils down to preparation. When it comes to beginning a food truck company, it’s critical to make sure you’re filling a need in the market, meeting a demand, and following the law. When doing preliminary research, consider the local food truck scene and local food truck rules and restrictions. This information will assist you in determining whether or not a food truck is the ideal company for you to start.

Food trucks that are well-targeted attract large audiences. (Photo courtesy of Pexels, James Frid)

Taking a Look at the Food Truck Scene

The food truck scene differs greatly depending on where you go. Before you start planning your menu, you should acquire a sense of what trucks are available in your region and which ones are the most successful. Local food trucks may be seen at food truck festivals and farmers’ markets on weekends. To begin, a simple online search for “food trucks” and your city or county name will usually return a large number of results.

When comparing vehicles, keep the following in mind:

• Cuisine: You don’t want to be the third falafel food truck in a small town, so choose a cuisine idea that isn’t being done by other food trucks in your region. However, you should choose a cuisine that has a broad appeal.
• Prices: If the most of the food trucks in your region offer cuisine in the $5 to $8 range, you won’t want to go too far outside of that range. If your town, on the other hand, has a large number of higher-priced, gourmet-style trucks, you know you can let your creativity go wild.
• Location of Parking: This will show you which neighborhoods are truck-friendly and which are not.
• Breakfast and lunch hours may be a popular period for trucks if many people travel to your town for work. So it’s a good idea to come up with a breakfast or lunch theme. If you’re in a tourist or college town, evenings and weekends may be busier, so a supper or late-night snack menu may be preferable.

When you visit neighborhood trucks, take notice of their service manner, menu size, parking places, and how busy they are. Examine their social media sites to discover how much marketing local trucks undertake to attract customers’ attention. Ask truck owners about their top operating issues when you meet them. They will almost certainly be willing to share their expertise with a budding food trucker. The companionship and support of other food truck owners is one of the nicest features of most food truck communities.

Investigating Local Food Truck Regulations

Regulations for food trucks are divided into three categories: health, zoning, and vehicle restrictions. What equipment your truck must have, what permissions you and your staff need, and if you need a commissary kitchen are all governed by health rules. Zoning restrictions dictate where you may park your truck for service, which areas are prohibited, and where you can leave your vehicle overnight. There will also be restrictions limiting what sort of vehicle you may use, what emissions requirements your truck must fulfill, where you must register your truck, and whether or not your truck driver need a commercial driver’s license (CDL).

Food trucks and street selling are regulated differently in each state, county, and large city.

Every individual operating on a food truck in New York City is a city in the United States., for example, must get a mobile food selling license. All food trucks in Los Angeles are required to display No Smoking signs on their vehicles. All food trucks must also have a valid contract with a commissary kitchen in many large cities and counties.

Commissary Kitchen: A commercial kitchen that supports mobile food enterprises and may be rented by the hour or day. Cooking equipment, refrigeration equipment, and storage rooms that fulfill local health department regulations are available in commissaries. Many also include grease and greywater disposal places, as well as truck servicing spaces and safe overnight parking.

You may usually learn about local rules by making a few phone calls, including one to your city or county health department and another to your city or county clerk’s department. When you get someone on the phone, you should ask:

• What permissions and licenses do I need and how much do they cost for a new food truck?
• Is it necessary to get separate food safety certifications for each employee, or is a single food manager’s license sufficient?
• What equipment does the health department demand for on-truck cooking, refrigeration, and sanitation?
• Is it necessary to have all of your equipment properly installed?
• Is it necessary for me to utilize a commissary kitchen that has been approved?
• Do I need individual vending permits for each employee or just a business license?
• Are there any restrictions on the size of the vehicle?
• When it comes to street selling, what zoning restrictions must my truck follow?
• Is a commercial driver’s license required to operate a food truck?

The answers to these questions will have a significant influence on how much it will cost to establish a food truck in your area, as well as how long it will take.

2. Decide on a name and a concept

You may narrow down a concept and name your food truck after you’ve figured out what restrictions you’ll need to follow and what sorts of cuisine perform best in your location. You should think about customer demand, although food trucks are recognized for their inventive remixes and distinct personalities. The most successful food truck ideas are those that reflect the owner’s particular interests and experiences. Consider Buldogis, a renowned Las Vegas food truck that offers gourmet hot dogs with a Korean twist, reflecting the proprietors’ American and Korean roots.

The following are some of the most popular food truck concepts:

• Fusion meals, such as Tex-Mex or sushi burritos, blend two unique cuisines to produce dishes that appeal to a wider audience.
• Local specialities, such as breakfast tacos in Texas or lobster rolls in New England, are usually a success, particularly in touristy areas.
• Acai bowls, cold-pressed juice, and creative salad combinations are just a few examples of fashionable health meals.
• Comfort meals: From fried chicken to mac & cheese, grilled cheese, tacos, and burgers, comfort foods generally translate into a lot of business for food trucks.
• Sandwiches de luxe: Who doesn’t like a delicious sandwich? Use unusual ingredients or create a theme to make your dish stand out.
• Pizza: A wood-fired pizza truck has a lot of fans (though it may also require a fire department permit, so check that first).

Your Food Truck’s Name

You’ll need a name that matches your dish after you have a broad notion of your concept. It’s crucial to get your truck name perfect since it will become your social media handle and emblem, as well as being emblazoned on the side of a truck. Our guide to naming a company provides a thorough overview, and our restaurant name generator may help you get creative.

However, here are some basic guidelines for naming your food truck:

• Choose a distinctive name: If another restaurant or food truck has the same name, you risk infringing on a trademark. To see whether your name has already been taken, utilize the free internet search tool provided by the United States Patent and Trademark Office (USPTO).
• Make your name descriptive: Your name should explain your cuisine, theme, or idea so prospective consumers know what to anticipate right away.
• Make the name memorable and simple to say: This is particularly crucial for food trucks, who depend heavily on word-of-mouth advertising. Avoid names that are too lengthy or too unclear. A reasonable rule of thumb for your food truck’s name is four words or fewer.
• Choose a name that will grow with your company: Your business name should be memorable and engaging, and it should be able to expand when you add additional trucks, new menu items, or create a regular restaurant.

Create a logo for your food truck

A company logo is the last component to your food truck idea jigsaw. You’ll need something that conjures up images of high-quality cuisine while still being interesting enough to compete with other food trucks. Your logo will appear on menus, business cards, social media, and all of your marketing materials. It will serve as the foundation for the design of your vehicle and clothing (if you have them).

You want this key marketing aspect to be in the hands of a professional designer since a fascinating logo may make a major difference in whether people approach your truck or pass right by. You don’t have to spend a lot of money to achieve this. Freelancer sites like Fiverr allow you to explore portfolios of freelance graphic designers who have developed anything from basic food truck logos to entire vehicle wraps for as little as $5.

3. Open a bank account and register your business.

You’ll need to form a business entity and register with your state before operating a food truck. The most prevalent forms of business structures are sole proprietorship, partnership, corporation, and limited liability company (LLC) (LLC). An LLC is the best option for most food truck businesses. It safeguards your personal assets in the case of a lawsuit or business bankruptcy, as well as demonstrating your company’s legitimacy to suppliers, insurers, and regulatory organizations.

The cost of incorporating an LLC varies by state, although it isn’t always prohibitively costly. The costs vary from $40 to $500, and the documents you’ll need may be found on the website of your state’s business office. However, completing LLC paperwork may be time-consuming and difficult. We suggest dealing with a legal website like Incfile if you want guided guidance. Incfile charges no costs other than the state filing fee to file your LLC and may generally complete LLC paperwork the following business day.

Open a Bank Account for Your Business

You’ll also need to create a company bank account to keep your personal and business money separate. This account will house monies that have been invested in your company and will be used to pay for permits, licenses, and vendor payments. Your credit card deposits will go into this account once your vehicle is up and running, and you will pay staff and suppliers from it. You may ask your personal bank about business banking alternatives, or go through our list of the top small company checking accounts.

4. Start a Fundraising Campaign for Your Food Truck

Depending on your region, the cooking equipment you’ll need, and the kind of truck you buy, starting a food truck company might cost anywhere from $40,000 to $200,000. The table below, based on data from mobile-cuisine.com, provides a general estimate of the itemized expenses associated with launching a food truck company.

Estimated Startup Costs for a Food Truck Business

Make a business plan for a food truck.

If you want your food truck to prosper, it will require a well-prepared business plan, just like any other company. Your business plan documents your idea so that prospective investors and loan officials can understand why your food truck is a suitable investment. Having a strategy for becoming successful can help you figure out how long it will take for your food truck to break even and how much money you’ll need to keep it running until then. Your food truck business plan lays the groundwork for how you want your company to start, function, and expand.

The following parts should be included in your food truck business plan:

• Briefly explain the food truck sector in your location, including its current state and future prospects, your idea, theme, and other markets and industries that may have a direct influence on your operation. This should not exceed one page.
• Identify market trends in the food truck business, as well as your target market and rivals, and conduct a competitive study. Are there any food trucks or typical restaurants in your neighborhood that provide the same types of cuisine or have the same target customer base? Describe how your truck will appeal to this group in a unique way, for as by giving a novel twist on a popular dish or by spicing things up with a secret sauce or spice mix.
• Management and organization: Describe your business’s operations, including standard operating procedures, employees, and the roles and duties of each important partner and employee. Will your food truck just serve customers on the street or will you also cater private events? Where will the bulk of your food be prepared and stored? Describe your truck’s layout. In one hour, how many clients can you serve?
• Detail your menu and ingredients, as well as the cost of preparation and how much you want to sell the dish for. If you’re getting your supplies from a local farm or a well-known seller, make a note of it here. This area should demonstrate that you understand food cost and profitability.
• Describe how you want to advertise your food truck company in your marketing strategy. Word-of-mouth, influencer marketing, and social media marketing are all important marketing platforms for food trucks. Participating in well-attended yearly food truck festivals will help you promote your business.
• Financial projections: For at least the first three to five years, break out your estimated costs, earnings, and losses. If you reside in an area where the weather varies often throughout the year, you should give a month-by-month breakdown for busy and quiet months.
• monetary requirements: Indicate how much money you’ll need to start your food truck and how you plan to get it. If you’re looking for a business loan, be specific about how much money you need.

Make sure you include all of the specifics while writing your business plan. Itemsize your marketing approach, for example, and describe how each line item will reach your target consumers, how much it will cost, and how many people it will likely bring in. Include all food products in your product line, as well as how they will look on your menu, the ingredients, and the price at which you want to sell each item. Logos and trademarked menus should be included. Include images of the vehicle and potentially an artist’s depiction with your logo and branding if you have obtained one.

Funding for Food Trucks

The majority of individuals do not have ready access to the funds needed to establish a food truck. Financing your company will be a necessary step. Before giving a loan, most lenders want a business plan, so make sure you have one ready, as well as the amount you require and your credit history.

Here are a few funding possibilities for budding food truck entrepreneurs:

• Some truck dealers or equipment financiers may provide you with a loan to help you buy the vehicle.
• If you have more than $50,000 in a retirement account, you may set up a ROBS, which allows you to utilize the cash in your retirement account to support your company without having to pay early withdrawal penalties.
• Business credit cards: A business credit card may be a suitable alternative if you are skilled at paying off debt.
• If you have a decent credit score and require less than $50,000, a personal loan is a suitable alternative.
• Microloan from the Small Company Administration (SBA): Microloans are far smaller than traditional business loans, yet they may be enough to pay the expenses of starting a food truck. For loans under $50,000, look into the SBA’s Microloan Program.
• Identify potential investors: Finding investors for your food truck company, whether it’s a friend or a family member, takes planning. Prepare a great business plan and a compelling idea to persuade investors to support your firm.

Banks and large investors do not provide all of the cash. If you have a large group of friends and relatives who are enthusiastic about your food truck idea, crowdfunding may be able to cover part or all of your startup costs. Your business strategy will serve as an excellent starting point for developing a captivating crowdfunding page. A benefit of crowdfunding for a food truck is that you’ll already have a following of people who are enthusiastic to see it come to reality.

5. Obtain all necessary licenses, permits, and insurance.

Remember how you performed some preliminary research into local rules in step one? Now is the time to put your plan into action by obtaining all of the necessary permissions and licenses, as well as insurance. General company licenses, food service licenses, and vehicle licenses are the three sorts of licenses and permits you’ll require. Most food truck licenses and permits cost between $100 and $500 apiece, depending on your area.

One of the permits your truck will need is a mobile food selling permit. (Photo courtesy of Charleston-SC.gov)

The following are examples of general business licenses:

• DBA Registration: If you wish to run your vehicle as a sole proprietorship or under a different name than the LLC you filed with the state, you’ll need a DBA to register the fake name.
• Employer Identification Number (EIN): The IRS assigns this number to your company and uses it to identify it for tax reasons. You’ll need one if you recruit any staff. On the IRS website, you may register for free.
• A business license is required for all small firms to function in the state in which they are situated. The cost of this license varies by state, although it is usually less than $500. Some states combine the procedure of obtaining a business license with that of obtaining a business license, although not all. To learn about your local needs, contact your state’s business agency.
• This license allows you to register your firm with your state’s sales tax authority. State and local sales taxes apply to all of your food truck sales, and you’ll need to register with your state to correctly track your sales tax payments. Typically, this permission is free.
• Reseller’s license: With this license, you may buy wholesale items and resale them tax-free.

Your state or local health agency will usually provide a foodservice license. Various licenses are required to cover your vehicle, your prep kitchen, yourself, and sometimes your individual workers. Most foodservice permits and licenses require you to pass a food safety exam or have your establishment inspected for food safety.

The following licenses are available for use in the foodservice industry:

• State-by-state requirements for obtaining a health permit differ. Getting your final overall health permit often necessitates obtaining all of the permissions and licenses mentioned below prior to applying for this general permit. Prices might range from a few hundred dollars to almost $1,000, depending on the size of your business.
• Permission for a mobile food facility (or unit): This permit is provided by a local Parks department rather than the health department in certain areas, although it still includes a food safety component. Food carts, kiosks, tiny trucks, and trucks that solely provide pre-packaged items and non-perishable liquids often have lower price levels. Prices usually vary between $300 and $500.
• Food Safety Manager’s Certification: Obtaining a health permit for your firm usually necessitates this certification. To receive one, you’ll need to attend a food safety course and pass a food safety exam. ServSafe charges roughly $199 for this service.
• Employee food handler’s permit: Some states, such as California, mandate that all food service employees have their own food handler’s permit. ServSafe may provide them to your personnel for $15 to $18.
• Commercial kitchen leasing contract: Obtaining your truck’s foodservice licenses in most places necessitates signing a lease with a licensed commercial kitchen. Health inspectors may want a written declaration from the kitchen owner verifying that you are a current renter in good standing. Prices may vary depending on the length of your lease.

Unlike in “The Great Food Truck Race,” most meals truck food is not produced on the truck itself from start to finish. Local food safety requirements in many areas mandate that food trucks cook and store the majority of their food in a licensed commercial kitchen. Preparing your food in a brick-and-mortar commercial kitchen assures that it can be maintained at safe temperatures below 41 degrees Fahrenheit and over 140 degrees Fahrenheit, which may seem like red tape (which can be hard to maintain on a truck).

Asking other food truck owners or looking on websites like Culinary Incubator and Commercial Kitchen for Rent will help you locate commissary kitchens in your region. You don’t have to limit yourself to commissary kitchens. Any commercial kitchen that has been inspected and licensed by the local health authority would suffice in most cases. This may be a restaurant kitchen that you hire out during the evenings, weekends, or summer months, or a school kitchen that you rent out throughout the school year. Some social and religious groups, such as Elks lodges, VFW halls, and churches, have commercial kitchens that meet the requirements.

Your truck will need commercial license plates, which will entail a trip to the department of motor vehicles. If your vehicle exceeds particular length and weight restrictions, you may need to get a commercial driver’s license (CDL) in certain jurisdictions. Other states make it illegal for vehicles that need a commercial driver’s license to operate as food trucks.

It’s possible that you’ll need to get parking permits for your vehicle as well. Food trucks are unable to park in the same locations as conventional vehicles. Every city has its own set of restrictions that limit parking options. You may also be required to follow the rules set out by neighborhood groups and municipal health officials.

Here are some pointers to ensure your food truck is parked properly:

• Request a list of sites where parking is prohibited or permits are necessary from your county clerk.
• For information about lesser-known parking rules, contact your local motor vehicle department.
• Your commercial kitchen contract should include overnight car parking.

You’ll need five different types of insurance to cover your food truck completely. The following is a list of the insurance you’ll need for your food truck:

• Commercial vehicle insurance is required in the event of property damage and liability claims resulting from vehicle-related incidents.
• Property insurance: This is a recommended policy that protects your vehicle and its contents in the event of theft or an accident.
• General liability insurance is a good idea since it covers injuries and property damage that isn’t caused by a vehicle.
• Workers’ compensation: In most jurisdictions, workers’ compensation is required to reimburse lost income for employees who are injured at work.
• General vehicle insurance is a legal requirement that varies by state but averages about $2,400 per year.

The following are some of the elements that might influence the cost of your insurance:

• Limits on your personal coverage
• What kind of car are you insuring?
• The state and city where you’re doing business
• You must insure the value and kind of personal business property you own.
• Each year, the number of different places and events you visit.
• If your kitchen equipment complies with a variety of industrial culinary requirements
• Your operating hours and days
• If you have a seasonal company,
• How much equipment is permanently mounted and transported in your truck to numerous events?

6. Invest on your food truck

Several of the permissions and licenses you’ll need are determined by the car you buy. As a result, this stage is usually completed concurrently with your permission application. Food trucks may cost anything from $3,250 for a used trailer to $300,000 for a brand new, custom-built vehicle.

You should get the highest-quality vehicle you can afford, regardless of your budget. Investing in a high-quality food truck from the start reduces the likelihood of future repair costs. Look for a local food truck constructor so you can be confident that all of your requirements are satisfied.

Make sure your vehicle is equipped with code-compliant equipment, such as:

• The refrigerators and ovens are in good functioning order.
• Water is accessible at both hot and cold temperatures and at a sufficient pressure.
• On board, there are fire extinguishers and first-aid kits.
• Food products should be stored properly.
• Professional installation of critical equipment is required.

Some sites need confirmation that your truck’s electric and gas systems were installed by a qualified technician. If you’re thinking of buying a secondhand vehicle, make sure you get this paperwork.

Where Can I Purchase a Food Truck?

You have a few alternatives when it comes to acquiring a food truck. A secondhand vehicle may be purchased from a private seller on eBay or Craigslist, or via an online directory service. You can normally obtain a fully equipped vehicle for under $50,000 if you buy a secondhand truck, however you will have to repaint the exterior and potentially refurbish the interior to match your company.

There are a few decent directories to go at if you’re looking for secondhand food trucks:

It’s a good idea to utilize an escrow service if you’re buying a secondhand vehicle online without seeing it first. The escrow provider will keep your cash in trust until the vendor delivers your vehicle, then release them after you accept it. To secure its customers and sellers, eBay, for example, has a built-in option to pay using Escrow.com.

A new food truck may also be purchased straight from a manufacturer, such as 800BuyCart. The regular vehicles begin at roughly $18,000. Food truck compatible automobiles are also available from major car manufacturers such as Ford, Nissan, and Mercedes-Benz; price and choices may be found by contacting a local dealer. When purchasing a new vehicle from a big manufacturer, plan to pay at least $40,000 plus equipment.

Constructing a Food Truck

If you have the money, custom-built food trucks may set your food truck apart from the competitors. Custom food trucks are designed to your precise needs by companies like Prestige Food Trucks, Cruising Kitchens, and Northwest Mobile Kitchens. The cost of a new personalized food truck will range from $100,000 to $200,000. The advantage, of course, is that everything is brand new, purpose-built, and typically covered by a guarantee. You won’t have to worry about past owners’ maintenance or if the gas lines were installed by an expert.

Getting a Food Truck on Lease

If you’re only open for a few months a year or have a restricted budget, you may want to consider leasing a food truck. Mobi Munch and RoadStoves, both located in Los Angeles, lease trucks on a month-to-month basis. Leasing is an appealing choice if there are truck brokers in your region since leases often come with a lot of included service. Customers who lease a truck from RoadStoves, for example, get overnight truck parking, a health permit, and access to a commissary kitchen as part of their lease. Food truck rentals often go from $3,000 to $4,500 per month.

The disadvantage of leasing is that the vehicle will not be personalized to your specifications. To personalize the truck with your logo and menu, you’ll need to be creative with magnetic decals. When your lease term expires, you may have to put your company on hold until you can locate a new vehicle.

7. Invest in new equipment and supplies

It’s time to finish your equipment requirements and set up accounts with wholesale providers now that you have your menu, licenses, and truck. You’ll need some additional tools even if your truck is fully equipped with culinary and refrigeration equipment. Standard food truck equipment includes generators, condiment tables, registers, and point-of-sale (POS) systems. You should also register accounts with food vendors so that you may purchase in bulk and avoid paying sales tax.

If you want to cater an event using your truck, you may want to invest in tables and chafing dishes. (Photo courtesy of Border Grill Catering and Truck)

Wrapping a truck and adding some flair to the outside are two options.

A “truck wrap” covers those bright vehicles with nose-to-tail patterns. A truck wrap is essentially a large vinyl decal that is applied to the exterior of your vehicle. A complete vehicle wrap should be fitted by specialists and should last three to five years. A vehicle wrap may cost anywhere from $2,500 to $5,000 to install (including design and installation). If you’re low on cash, you may get smaller vinyl decals created and installed yourself at a local sign shop. However, anything more than two to three square feet should be left to the professionals.

Truck wraps are available from a variety of firms, including:

It’s also possible to repaint the outside of your vehicle. This is less expensive than a vinyl wrap, ranging from $1,000 to $3,000, but it should be done by specialists. Painted decorations are less durable and may not last as long as vinyl coverings.

When your truck is stationary, in addition to displaying your company emblem and contact information, it should also display your menu. Menus for food trucks that vary often might be created by hand on chalkboards or dry erase boards. You could choose to show a professionally created, printed menu if your menu is consistent from day to day. A menu design may usually be requested from the same individual that created your food truck logo. Alternatively, utilize an app-based menu builder like Canva’s.

Equipment for cooking and serving

You may have most of your major equipment requirements covered between your vehicle and your commercial kitchen. However, if your menu calls for special ingredients such as wood smoke, rotisseries, or metal skewers, you may have to buy them yourself. While commercial kitchens are likely to feature blenders, tongs, and spatulas, supplies in a communal cooking area are often limited. You’ll most likely need to buy some of your own small appliances, such as a food processor, baking sheets, and Cambro containers to store and carry your prepared food to your truck. Just make sure your commercial kitchen leasing has safe storage so you don’t have to schlep your food processor back and forth every day.

If you provide catering, you’ll need a few solid folding tables and chafing dishes to keep your food warm while you’re outside. Most modest equipment may be found at a local restaurant supply or kitchen shop. Sur La Table, a popular cooking store, even gives culinary experts a 10% discount. These commodities are also available via mainstream distributors like Sysco. Table linens are one piece of equipment that isn’t worth investing on. These may be rented by you or your catering clients to fit the color schemes of the occasions.

POS Hardware

Credit, debit, and mobile wallet payments are becoming more popular among consumers. According to recent surveys, 80% of customers utilized contactless payment methods in the previous year, with up to 70% of millennials using smartphone purchases. While operating a cash-only food truck is theoretically conceivable, the inability to take credit, debit, and mobile wallet payments may severely limit your sales. A cloud-based, mobile POS system is the easiest method to take card and digital payments.

These tools have gone a long way in the last few years, and they are becoming more readily available to small enterprises like food trucks. Many of our top-rated food truck POS systems are free to use and may function via Wi-Fi or cellular networks. Square for Restaurants, our favorite food truck POS, runs on iPads, and you can download the program from the Apple App Store and start accepting payments in a matter of hours.

However, a POS system is more than just a cash register. A solid food truck POS system will keep track of your inventory, alert you when it’s running short, assist you with inventory counting, and keep track of every cash transaction (reducing the likelihood of employee theft). Modern point-of-sale systems now include facilities for logging client contact information for targeted marketing efforts, managing social media profiles, and keeping track of online reviews.

Establishing Vendor Accounts

If your food truck becomes even a little bit busy, you’ll want to create wholesale accounts with mainstream wholesalers like Sysco. This saves you money on food and beverage supplies while also saving you time on the road since most wholesalers will deliver right to your commercial kitchen. In addition, most suppliers operate on a net 30 structure, which means you’ll have 30 days to settle the supplier invoice after your credit application is granted. If you choose, you may still pay with a check upon delivery in most situations.

Instead of opening accounts with big distribution chains, you could choose to start with small wholesalers. Try to select one that can meet the majority of your food and beverage requirements; the fewer suppliers you work with, the less bills you’ll have to deal with each month.

Pro tip: Make a single page with all of your credit application information to speed up the process of creating a vendor account. Include your name, the name of your vehicle, the address of your company, your EIN, and your banking details.

8. Hire and train employees

Even though food truck entrepreneurs handle a majority of the labor themselves, you’ll almost certainly need to recruit some hourly workers. The majority of vehicles employ at least two to four people. The people you recruit should compensate for whatever abilities you lack or places where you are unable to focus. If you’re a master grill chef, for example, you’ll need to recruit cashiers. However, if you have a friendly demeanor and are good at upselling, you could be better suited to a customer-facing position and employ chefs. If you get a lot of catering enquiries, hiring an event salesman to deliver estimates and manage catering contracts can be a good idea.

For your food truck, you may wish to employ a window attendant. (Photo courtesy of Pexels, Kampus Production)

Staffing for a Food Truck

Here are some examples of common food truck staff:

• Window attendant: Your window attendant handles orders, communicates with customers, and accepts payments at the truck window. This role would suit someone with a warm demeanor and previous cash-handling expertise. Window attendants work on an hourly basis for minimum salary and may get tips.
• A truck chef prepares and serves meals on the truck itself. You may require two chefs in the truck at all times, depending on the amount of cooktops you have and your menu style. Truck cooks are often hourly workers that make at least minimum wage; however, if your truck cook is experienced, you should absolutely pay more. On-truck tip pools usually include truck chefs.
• If your truck is busy, you may want assistance with off-truck prep cooking. While your truck is on the road, hiring a prep cook to work in your commercial kitchen might help you cut down on your turnaround time between services. Prep cooks are often part-time employees who make at least the minimum pay. Prep cooks may or may not be included in tip pools, depending on local labor rules.
• Salesperson for catering: You don’t want to lose out on the opportunity to arrange private catering events. These might provide a significant increase to the profitability of your vehicle. A caterer salesperson responds to all requests for private events and works directly with your customers to establish a menu, negotiate an event contract, collect deposits, and rent rental equipment. Catering salespeople often receive a modest hourly wage or salary, as well as a 3 percent to 10% commission on any events they book. Salespeople in the catering industry are seldom tipped.
• Catering servers: At large gatherings, tray-passed food or certain meals delivered at individual tables are occasionally requested. Event planners may employ this crew themselves, but having your own team to call in might be beneficial. Having your own catering servers might help you book larger (and more expensive!) events. Catering servers might be paid a set hourly salary (typically more than minimum wage) or minimum wage plus tips.

Where Can I Find Food Truck Employees?

The first step in recruiting food truck employees is to create a detailed job description. Make it clear what responsibilities the prospective employee must do, what experience they must have, and what licenses or degrees they must have. If you’re in New York City, for example, you may give candidates who already hold a Mobile Food Vendor license first preference.

Share your job vacancy with friends and family members by posting a comprehensive job description with a pay range on popular employment sites like Indeed. Personal recommendations may lead to excellent candidates.

Staff Training for Food Trucks

Every member of your crew will need to be trained on your menu and truck procedures. Allow two to two weeks, depending on the amount of expertise on your team, to get everyone on the same page. Prepare itemized menus with ingredient lists and common allergies, as well as a list of what can and cannot be amended. If your chili is prepared with bulgur wheat, for example, it cannot be made gluten-free.

All of your truckers should be familiar with how to use the fire safety devices on your vehicle. Ascertain that they are aware of the location of fire extinguishers and how to utilize them. If your vehicle has a fryer, make sure everyone understands what to do in the event of a grease fire.

You’ll also want to educate your staff on your commercial kitchen’s regulations and practices. If you have stringent operation hours, specific storage locations, or designated parking places, you’ll want to make sure your crew is aware of them so they can represent your business properly.

Handling Suggestions

If your vehicle receives tips, you may set up a tip pool to disperse the money to your employees. See our guide to restaurant tip pooling legislation and what is tip out for more information on how to manage a tip pool. A typical method of distributing food truck tips is to create a tip pool based on hours worked.

9. Publicize Your Food Truck

The last stage in beginning a food truck company is promoting your truck after you’ve got your vehicle and your location set up. Social media marketing, selling at local events, developing a website, and joining advocacy organizations are all examples of smart food truck marketing techniques.

Ronnie’s Kickin Chicken’s website makes it simple to locate its trucks. (Photo courtesy of Ronnie’s Kickin Chicken)

Food truck in Burlington, Vermont In their Instagram feed, Farmers and Foragers assigns equal weight to food and human tales. (Image courtesy of Instagram)

Vegan empanada truck in New York To respond to typical consumer queries, the Cinnamon Snail employs automated Facebook message. (Photo courtesy of Facebook)

New consumers go to food truck events in significant numbers. (Photo credit: Pinterest)

Marketing on Social Media

Using Facebook and Instagram to interact with your local community and assist prospective consumers discover your company is a fantastic method to do both. In addition, Instagram is a great location to share photos of your delicious cuisine. Post often for optimum effect, and be sure to incorporate any local hashtags to help your company get noticed. Don’t simply take pictures of the food; part of the attractiveness of food trucks is their personal narrative and team togetherness. Allow people to get a sense of your personality and enthusiasm.

Also, be sure to provide your locations and hours of operation so that clients can readily locate you. If you take orders over the phone or online, provide that information in your social network profile. You can also put shoppable links to your online purchasing site or buy gift cards using stickers and buttons on your Facebook or Instagram pages.

Collaborate with Influencers

It’s no secret that foodies abound on social media, particularly Instagram. You don’t have to pay to advertise to high-profile Instagrammers. Your ideal influencer is a local person with a large following who often tweets about food. Send a direct message to a few local foodies offering a free supper and watch what kind of organic posts you get in return. You should meet them in person and offer a hashtag that advertises your vehicle to make this tactic succeed. Even better if your vehicle has a unique style that stands out in images.

Participate in local festivals and events.

Festivals are a terrific chance to meet new people and learn from other food truck entrepreneurs. Countless towns and cities have outdoor activities, ranging from fairs to farmers markets, especially during the spring and summer months. Participating in these events is an excellent method to raise awareness about your company while also generating additional revenue.

There are also a number of food truck events. Make an effort to attend as many events as possible. You’ll have a captive audience to sell your company to, and you’ll almost certainly generate sales. Create an event calendar that you can give out to consumers if you participate in many events, fairs, or festivals so they know where to find you next.

Become a member of a street vending advocacy group.

Food truck advocacy organizations may be found in many places with thriving food truck communities. Joining one will give you in touch with other like-minded company owners who can assist you with challenges and refer you to events if their truck is not accessible. Advocacy is, of course, an extra advantage of joining an advocacy organization. These organizations collaborate to promote food truck-friendly municipal rules, which benefits everyone’s company.

It’s a good idea to start with the National Food Truck Association. It presently has chapters in the following cities:

• California’s south coast
• San Antonio is a city in Texas.
• Nashville
• New York City
• Philadelphia
• Houston
• St. Louis is a city in Missouri.
• … as well as a slew of additional states and cities

Make a web page

Any small company, but particularly a food truck, need a website. A website informs prospective consumers about who you are, what you offer, and where they can locate your food truck. Your website may also serve as a venue for displaying your event calendar or a contact form for catering orders. Our step-by-step tutorial will help you through the process of creating a company website.

A website may also add gloss to your company by allowing you to use a business email address that is branded with your truck’s name. A professional-looking food truck website does not have to cost thousands of dollars. For $3.95 per month, Bluehost offers options that include registering a custom domain name, hosting your website, access to a WordPress web builder, and a business email address.

The Benefits and Drawbacks of Starting a Food Truck

There are various processes to developing and operating a food truck, as you now know. The food truck sector, like any other economic enterprise, has its benefits and drawbacks.

Food Truck Alternatives

If a food truck seems to be a more difficult business venture than you anticipated, you could choose to try a mobile food company with a smaller footprint. These food truck options have some of the same criteria as traditional food trucks—you’ll still need to cook in a certified kitchen and have a food safety certificate—but the initial expenses and time commitment are far cheaper.

• Food Cart: Food carts can go into places where a food truck can’t. A food cart may usually be run without the need of any workers. Menus are often smaller than those of food trucks, focused on a single item such as hot dogs or coffee. But that doesn’t mean you can’t be inventive; empanadas, falafel, and Guyanese bakes are all excellent choices for a food cart.
• Tent Vending: Compared to a food truck or a food cart, tent vending has a considerably lower initial cost and functions similarly. Rather of serving from a truck, you serve from a table in a tent, as if you were at a farmers’ market.
• Cottage Food Business: Some kinds of food may be made in permitted home kitchens and sold to the general public in all 50 states. There are certain restrictions on what you may serve—cured meats and meals that must be served hot are normally off limits—but if you produce gorgeous breads and pastries, you might quickly turn a profit. Cottage foods include pickles, vinegars, mustards, jams, and other shelf-stable foods that may be kept at room temperature.

A food cart takes up less space than a food truck. (Photo courtesy of Pexels, Meruyert)

Tent vendors often use grilling and barbecue as cooking methods. (Photo courtesy of NYC BBQ)

Cottage foods are items that are shelf-stable at room temperature, such as breads. (Pexels photo by Felicity Tai)

If you’re searching for a more ambitious project, consider opening a restaurant.

Frequently Asked Questions about Starting a Food Truck (FAQ)

What Is the Profitability of a Food Truck?

Successful food trucks may be very successful, with yearly sales of approximately $500,000 and monthly sales of up to $50,000. To achieve such high numbers, you’ll need a well-targeted menu, good marketing, and a full-time dedication to controlling your expenses and overhead.

Expanding your food truck company to incorporate private catering, online ordering, and additional income sources like selling a shelf-stable trademark sauce or retail products may help you have a very lucrative food truck. It benefits to operate in a food truck-friendly city, such as Los Angeles, Philadelphia, or Denver, where policies support the growth of food trucks.

Is it Difficult to Own a Food Truck?

It takes a lot of effort to run a food truck, but it can be highly gratifying. Food prep may begin many hours before service in your commissary kitchen, and your day doesn’t end until the truck is parked, the food is unloaded, the greywater is drained, and all surfaces are cleansed and sterilized. You’ll engage with hungry customers, but you’ll also be in charge of scheduling employees, managing payroll, and handling parking violations. Marketing is crucial, and it’s entirely on you, as are less creative tasks like paying sales taxes.

If that seems doable, then having a food truck won’t be difficult. However, if that description seems intimidating, you may want to brush up on your restaurant management or basic business abilities before attempting to run a food truck. Alternatively, pick one of the food truck options mentioned above.

What Can I Do If I Don’t Have Any Money to Start a Food Truck?

If you have no money and want to create a food truck, crowdfunding is your greatest option. Alternatively, try beginning small with a cottage food business or tent vending to create a brand and fan base while saving for your truck.

What Causes Food Trucks to Fail?

Due to a shortage of money, many food trucks collapse within the first three years of business. Uninteresting ideas, strict rules, bad supplier selections, truck breakdowns, and poor marketing are all examples of challenges.

The following are some of the most common reasons food trucks lose money and eventually fail:

• Traditional eateries are protected by local rules.
• Poor financial and operational planning
• Vehicle maintenance costs that were not budgeted for
• Underestimating the amount of hours required on a daily basis
• Marketing that is ineffective

Conclusion

If you’ve ever wondered how to start a food truck company, you should know that it’s a fun—yet time-consuming—process with a lot of room for profit and development. The food truck business is tough, but lucrative in the end if you take the time to develop a thorough business plan based on market research and a well-thought-out marketing strategy. The greatest approach to ensure success is to make sure you have enough initial funds and the correct equipment.

The “how to start a food truck business in texas” is a guide that will help you get started on your food truck business. It has 9 steps, which are detailed and easy to follow.

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