How to Run a Food Truck - the Successful Way

Over the past few years, food trucks have grown in popularity, thanks to their delicious offerings and reasonable prices. However, creating a successful food truck business is completely dependent on how well you prepare in advance and how well you understand exactly how to run your business before you get there. Making it up as you go along is not an option. 

“Your food truck brand will impact how people perceive and interact with your business. It should answer the question “why should customers choose your food truck over other food trucks?”

How to Run a Food Truck: 10 Tips to Ensure Your Success

By following these tips, you can increase your chances of succeeding in the competitive food truck industry. 

1. Separate Yourself from the Competition

Not all food trucks are created equal. The trucks that succeed know how to differentiate them from others in the area. As you define your food truck concept, figure out what your competitors are doing and what you can offer that sets you apart from the crowd.

So what can you do to not only survive but thrive in a sea of competition? First and foremost, create a unique presentation from the food you serve, the way your truck looks, and the customer experience you offer. Also, prioritize unique, high quality dishes and promote a consistent brand that builds customer loyalty. 

2. Know Your Customers

It’s difficult to attract and retain customers when you don’t know their needs, wants, and preferences. That’s why you should perform market research and determine your ideal audience. You’ll want to answer questions, such as:

• What is the age range of your customers?
• How often do they eat out?
• What is their preferred way to pay for their food?
• How do they interact with various marketing channels?

You may survey your existing customers, use Google Analytics to uncover who visits your website and what they do there, read reviews on social media outlets and review sites, and invest in focus groups. You can even do some investigating to figure out who your competitors are serving. 

3. Choose Your Menu and Location Wisely

The reality is the menu and location can make or break your food truck venture. Unlike a standard restaurant menu, your food truck menu should be short and sweet as too many options can overwhelm you and your customers. In addition to a concise menu, make sure it includes enticing descriptions and photos. Find a unique angle and stay away from currency signs.

Now let’s talk about location. While it’s cliche, it’s true, location is important. As you look for various locations, ask yourself whether the space is large enough and determine which permits or fees are required. Also, make sure there’s enough foot traffic to make it worth your time. Several of the prime food truck locations you might want to explore include business districts, food truck parks, bars, gas stations, festivals, and special events. 

4. Pay Attention to Branding

Your food truck brand will impact how people perceive and interact with your business. It should answer the question “why should customers choose your food truck over other food trucks?” If you need help honing in on your brand, start with a mission statement.

Your mission statement should include the goal of your food truck and how you plan to achieve it. Then, determine how your brand will look and feel. If it’s fun and bold, bright colors and large fonts make sense.

However, if it’s sophisticated and high-end, a neutral color scheme and cursive fonts are a better option. No matter what type of brand you choose, make sure you’re consistent with your logo, imagery, brand, font choices, and voice.

5. Consistently Market Your Business

It’s vital to market your food truck and its offerings, even after it gains traction and you build a loyal customer base. To do so, build a compelling, user-friendly website and harness the power of various social media channels, like Facebook, Instagram, and Twitter.

Also, ensure that your business is included on well-known online review sites, like Google Reviews and Yelp with photos, hours, typical locations, and price range. If you’d like to expand your reach as much as possible, you may want to invest in PR as well.

Contact popular food bloggers in your area and ask them to review your food truck. While you might have to compensate them with a free meal, the marketing they may bring you will be worth it. In addition, offer coupons and promotions on a regular or occasional basis.

6. Keep Your Business Legal

Just like other businesses, food trucks require various licenses, permits, and insurance to operate legally. Each city and state has their own specific requirements so it’s wise to reach out to your county clerk or the U.S. Chamber of Commerce Foundation for more information.

You may also want to enlist the assistance of an attorney or accountant to help you register your business with the IRS, select a business entity, apply for permits, and more. If you understand and adhere to the legal requirements for your food truck, you can avoid headaches and costly penalties down the road.

7. Closely Manage Your Costs

Before you go ahead and launch your food truck, you’ll need to create an accurate budget for your first year in business. Some of the expenses you’ll want to consider include startup fees, labor costs (if you intend to hire employees right off the bat), food, supplies, gas and vehicle maintenance, and annual business insurance fees.

If you know your costs ahead of time and keep close tabs on them, you’ll be more likely to stay within budget and avoid unwanted financial surprises that wreak havoc on your bottom line and future.

8. Optimize Your Labor

Initially, you might ask friends or family members to help you get your food truck up and running. But as your food truck grows, you’ll likely need to invest in part-time or full-time employees. The number and type of employees you’ll want to hire will depend on factors, such as your budget, order volume, and goals.

Once you establish a list of employees, consider federal and state wage rules. Also, remember that you’ll need to provide adequate and ongoing training to ensure you’re making the most out of your labor resources. 

9. Choose a Top-Tier POS System

While you might be able to run your food truck with a paper order system, a point-of-sale or POS system and its automation capabilities will come in handy as you grow. You can use a POS system to manage orders, accept payments, track inventory, design loyalty programs, and more.

With a quality food truck POS system, you’ll be able to expedite and streamline your processes and offer better customer service as a result. If possible, choose an intuitive POS system that’s specifically created for food trucks and restaurants. A complicated system can complicate things and do more harm than good. 

10. Contract Out Professional Services

It might be tempting to try to take the DIY approach and handle all business-related tasks on your own. But doing so can lead to stress and mistakes that eventually cost you time and money. Instead of doing everything yourself, consider investing in professional services. 

You don't have to hire full-time employees when you need assistance with certain business functions. Instead, contract them out. Several examples of professional services you might need as a food truck owner and operator include lawyers, accountants, web developers, graphic designers, marketers, equipment technicians, and auto cleaning professionals. 

Advice for Running a Food Truck with No Experience

You don’t need a lot of experience to run a food truck business. These tips can help you succeed if you’re new to the industry. 

Join the Community

As a food truck owner, it’s wise to build relationships with various business owners in your local community. You can refer customers to one another and share meaningful business advice and resources. Don’t forget to make friends with other food truck owners as you may support one another and even cross-promote your offerings on social media.

Hire an Experienced Team

The key to a successful business is loyal, passionate employees. For this reason, you’ll want to establish a strong team of chefs, cooks, service window attendants, and kitchen prep assistants. Then, work hard to retain them by praising their hard work and offering financial rewards like raises and bonuses.

Track Your Data

Thanks to technology, such as POS systems, you can easily track all data related to your food truck. Review your data often and use it to make well-informed business decisions. Through your data, you might find that certain menu items perform better than others, you’re more profitable during specific times, or you can raise your prices while still maintaining your customer base.

Stay Organized

Your food truck business will involve a great deal of documentation. Be sure to keep all permit, license, renewal, and legal paperwork in order. You can always outsource this task to a professional.

Tips on How to Run Your Food Truck More Efficiently

To ensure smooth operations that maximize your resources and increase your profits, keep these tips in mind.

Analyze Your Menu

Your menu should excite your target audience, align with your budget, and help you stand out from other food trucks. When it comes to choosing the type of food you want to serve, the options are endless. From pizza and barbeque to sliders, tacos, and grilled cheese, there is no shortage of cuisine at your disposal. 

Partner with Others

To promote and grow your food truck, you can reach out to nearby businesses and drop off your menus. Another option is to partner with local offices during lunchtime and offer specials and/or delivery. In addition, provide a catering service and look for businesses that need food.

Keep Up with Trends

These days, customers are on the lookout for food trucks that cater to the latest and greatest trends. By adding seasonal items or limited time offers, you can keep your menu fresh while offering trendy choices that appeal to your target audience. 

Improve Your Marketing

Marketing is essential to the success of your food truck. Take a look at your current marketing strategy and figure out how you can take it to the next level. Maybe you’re missing an email newsletter that describes your menu items and states where your food truck will be parked. Or perhaps you’re not taking advantage of traditional marketing initiatives, like billboards or direct mail. You may want to hire a marketing consultant for assistance. 

Use the Right Tools

There are many tools that can make your food truck more efficient. A POS system, for example, will enable you to quickly and conveniently take orders and process payments. You might also use location apps to share the location of your food truck with current and prospective customers. Additionally, food safety systems might  come in handy and ensure you pass random visits or checks from health inspectors. 

Ensure Sufficient Funding for Your Food Truck Business

Unless you have unlimited amounts of cash on hand, you’ll likely need to secure food truck loans. Here are some options you might want to explore.

• Business Term Loans: With a business term loan, you’ll receive a lump sum of money upfront. Then, you’ll repay it plus interest via fixed payments or installments. Term loans usually come with longer repayment terms of a few years to several years.

• Equipment Financing: Since you’ll need ovens, refrigerators, and other equipment to run your food truck, equipment financing is a good option. You can receive funds to pay for new or used equipment. In most cases, you’ll be asked to provide a small down payment.

• Working Capital Loans: For short-term, temporary cash-flow, a working capital loan might make sense. It can help you stock up on food and supplies and pay for various expenses during slow seasons. Most working capital loans have short repayment terms of 18 months or less.

• Merchant Cash Advances: A merchant cash advance may be a solid pick if you don’t have the best credit and most of your customers pay you via debit and credit cards. You’ll receive immediate cash in exchange for a percentage of your future card sales.
• Business Lines of Credit: For a flexible food truck loan, a business line of credit is the way to go. You can withdraw funds as you need to, up to a set credit limit. You’ll only pay interest on the amount you borrow.

• SBA Loans: Partially guaranteed by the U.S. Small Business Administration (SBA), SBA loans offer great rates and repayment terms of up to 25 years. But you will need strong credit to qualify for them.

Business Mentoring Organizations That Could Help

For support with your food truck business, don’t hesitate to reach out to these organizations.

• Small Business Development Centers: These centers are located throughout the country and strive to develop small businesses. You can turn to them for free or low cost one-on-one advising, training, and workshops.
• SCORE: SCORE offers mentorship and workshops to entrepreneurs and  small business owners. Its website features a robust library of useful templates and advice. 
• MicroMentor: MicroMentor is an online mentoring platform. Create a profile on the site and connect to volunteer mentors at no cost. 
• Meetup: Meetup is home to a variety of mentorship groups for startups. A few examples include New York Community of Technology StartUps and Startup Mentors. 
• Nasdaq Entrepreneurial Center: The Nasdaq Entrepreneurial Center features a free mentor matching program. It can help you find a mentor with the unique experience you’re looking for.

Final Word 

A food truck business is a great idea if you’re hard working and passionate about food. With the tips and tricks mentioned above, you can avoid common pitfalls and set your food truck up for unparalleled success. Don’t be afraid to reach out to professionals for help with your truck.  Best of luck with your food truck venture!