Angulo found her truck on Craigslist back in 2011 and, while that is still a great place to search, there are many new resources out there, including:
● Local online classifieds: This is a good option; used trucks are cheaper and if they are local, you can easily inspect them.
● National online classifieds: This will open a lot more inventory but get as many details and pertinent information about the truck from the seller as possible since you most likely won’t see it in person before pickup.
● New custom trucks: While this is the most expensive option, it is the best way to ensure that your truck is up to code and standards and that it can be customized to your specifications.
● Leasing and franchising: You may be able to find a local truck to lease or from a national truck leasing company. Yet another option is to franchise a truck from an established company. However, among the drawbacks to consider are that you do not have control over the product, marketing or menu.
Mobile POS options:
Most food truck customers are used to paying with cash but credit cards and mobile payments are popular. “We’ve always used Square and have been very happy with both their credit card processing and their POS service,” said Angulo.
Below are a few options for processing sales, listed from the lowest-priced option to the most advanced.
Cash box and cash-only sales
● Advantages: Low-priced; you can purchase a lockable box for under $20
● Disadvantages: Doesn’t track sales or food inventory; you cannot process card payments
● Ongoing costs: None
Cash box + mobile card processor
● Advantages: Low-priced; mobile processors can simply charge swipe fees, but you’ll need Wi-Fi access and/or a good data plan to connect to the processing service
● Disadvantages: Most mobile processors include a simple inventory system and limited additional features
● Ongoing costs: Credit and debit card processing fees and mobile data fees
Cash box + POS system + mobile processing
● Advantages: Mobile credit and debit card processing, plus sales and inventory tracking
● Disadvantages: An additional monthly service fee and hardware costs
● Ongoing costs: Monthly POS service fee, card processing, mobile data service and possible hardware fees
The advantages of a food truck business:
● Business ownership: Numerous tax advantages come with business ownership and, while it is difficult to own and run a business, at least there is a little bit of relief on the tax front.
● Freedom: Choosing menu items, the vendors you want to purchase from, your employees and the events at which you want to vend are just some of the freedoms you enjoy as a food truck business owner. You also have full control of your social media, marketing and schedule.
● Mobility: Being able to bring your business to different locations based on demand during different periods of the day, days of the week, and so on, is a huge advantage, said Angulo.
● Virtual kitchen: With established brick-and-mortar businesses not always able to bring in supplemental revenue through virtual kitchens due to a lack of proximity to a large customer base, a food truck can house multiple brands if an owner is not brand attached.
The challenges of a food truck business:
● Time: Long hours are the norm with a food truck business. With issues like shopping, prep, marketing, event booking, cleaning, truck maintenance, accounting and tax obligations, running such a business is more than a full-time job.
● Competition and market: Carefully research your market to increase the chance of success ― you will most certainly have competition with other food trucks.
● Ordinances and zoning: Every area is different in terms of where you can park your food truck and how long you can park there. Make sure you know the rules in each location where you plan on operating to prevent tickets and fines.
● Foot traffic: As a food truck is reliant on potential customers walking by, it can be difficult to plan for sudden changes in demand due to weather or with the hybrid schedule of office workers for example.
Food truck permits and regulations:
It is important to research the different areas you are considering for your business location and consider the necessary permits and regulations there.
Here are a few main things to look out for:
● Food safety: You’ll need to comply with local food safety requirements, just like any other restaurant in the area. Contact the local health department to find out more information, such as if you need to prepare all your food in a professional kitchen or if you can use your own facilities. Seller’s permit: Some states require food truck owners to apply for a seller’s permit, which allows you to purchase food and equipment at wholesale prices without incurring sales tax.
● Zoning and parking: There may be restrictions on where you can park your truck; make sure you research that before setting up shop. There could be commercial versus noncommercial zoning restrictions, parking time limits or distance restrictions from other establishments. Your city and local motor vehicle department can help you.
● Vehicle license: Because your business operates from a vehicle, every driver must be properly licensed and trained to operate the vehicle. Depending on your state and the size of your vehicle, you may have to obtain a commercial driver’s license to legally operate the food truck.
● Fire certificates: If you’re using equipment on the truck to cook food, you will likely need to undergo a fire department inspection. The requirements for a fire certificate vary by state.
● Employee identification number (EIN): If you plan on hiring employees, you will need to apply for an EIN, which is a federal tax ID issued by the IRS to identify a business entity. An EIN also enables you to open a business bank account and start establishing a business credit history.
● Business permits and licenses: As with any business, you’ll need certain licenses to operate your food truck, including a doing-business-as (DBA) and a state sales tax permit, which is low-priced and easy to obtain. To form your business, check your home state’s requirements. For an easy option, try an online service like LegalZoom. To help you decide which legal structure is best for your business, read our guide on
Bring the restaurant to your customers with a food truck:
Ultimately, whether you decide to visit different locations and communicate with your social media following or only operate on Tuesdays on one corner street, your food truck is a reference point for other people to follow. Leveraging your customer base by providing a high-level quality of food will be the only way to grow your customer base quickly to account for a variation in demand and sudden expenses. Catering orders are a great way to also bring in additional revenue after a certain period of time when you know that a specific weekend will see a significant drop in foot traffic.
Whether you are trying out your lifelong dream of selling sweet pierogies or want to see if pizza slices to go from trucks are scalable, your objective remains the same with an added twist ― every day you’ll be traveling your kitchen to your customers. That can be exciting but also physically draining and you’ll have to account for that every day you operate.
Comments