You can’t drive by a popular lunch spot without seeing a few food trucks with customers lined up. So why is the food truck movement so popular?
The cost of starting a restaurant is about $501,236 on average. By comparison, buying a food truck costs $100,000 to $175,000—less than half that of a permanent location.
Aside from the lower start-up costs, there are many benefits to starting a food truck. Read on to learn some of the top ones.
1. Always Have the Perfect Location
With most restaurants, location is everything. If it’s not situated in a prime location, a restaurant could have some trouble attracting traffic.
Location is a big advantage that food trucks have—food truck owners don’t have to limit themselves to one location.
Food trucks can test out different locations at various times and see where they get the most business. Since they basically have a business on wheels, they can go in search of customers.
A food truck owner might decide to stick to one location during lunch and pick a different place for the dinner rush.
2. Your Food Truck is Free Advertising
The average business spends about 7 to 8 percent of its revenue on advertising. Businesses that are in a standing location have to put more effort into advertising to create brand awareness.
Food trucks, on the other hand, are a moving billboard. Whenever they drive the food truck around town, they’re getting free advertising.
If a restaurant also has a food truck, the truck advertises the restaurant location and it’s great for the brand.
The more people see the food truck driving around, the more recognizable your brand will become.
3. An Experimentation Lab
When customers go to a restaurant, they expect certain things from the menu. It’s not as easy for a restaurant to change the menu overnight.
Food trucks, on the other hand, have smaller menus so they can get away with changing the menu and experimenting with more food options.
Restaurants that also have food trucks can experiment with new menu items before bringing them on to their permanent menu.
4. Explore Catering Opportunities
With the help of a food truck, businesses can expand and try out catering opportunities. The food truck is basically a moving kitchen that can go everywhere.
It’s a lot easier for food trucks to transport food around town, so food trucks can get more business if they offer catering options.
5. Keep Costs to a Minimum
Although food trucks are a big investment, they’re not quite as expensive as a standing restaurant location.
Food trucks cost less as far as startup and food costs. Also, expansion costs are a lot less for food trucks.
If you want to add a second location to your business, adding a food truck is definitely a more cost effective option than expanding to a second permanent location.
Benefits of a Food Truck Business: The Bottom Line
There are many benefits to starting a food truck business. These include low startup costs, free advertising, and a chance to experiment with a new menu.
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