Six reasons why you should consider taking your business on the road
As a company owner, the stress associated with running a food and beverage establishment may be excruciating.
The majority of restaurants fail due to a lack of cash and a lack of repeat customers, which may be remedied by packing up and leaving the four walls of your brick-and-mortar restaurant.
Allow us to share the process of transitioning from a static to a dynamic and thrilling world of food trucks! Let’s travel together and go over the eight reasons why you should take your food company mobile!
With a total land area of 9.99 million square kilometers, having a food truck in Canada opens up a whole new market in numerous provinces and municipalities. The mobility of a restaurant presents an opportunity that static physical locations cannot match: the potential to serve to a greater demographic of customers at any time and in any location.
Food trucks enable you to go where the crowds congregate. Its portability makes it an appealing investment. If your current place does not seem right, it is simple to relocate. This is the competitive advantage that trucks have over sit-down restaurants.
When managing a static restaurant, you spend hours impatiently awaiting the entrance of clients! With your new wheels, anxiety will be a thing of the past! You will be able to go wherever the people are with your wheels! By combining mobility and technology, you can maximise the potential of your truck.
Initial Investment Is Minimal
If you have collateral, banks are more willing to lend you money. Loans are not something that brick-and-mortar businesses offer! Food truck financing is often more flexible, as the vehicle itself acts as collateral. Depending on your credit score, you may typically secure excellent bargains with lower interest rates and longer mortgage payments. You may begin by paying as little as possible on your mortgage, but as your business grows, you can pay the amount in bulk. This enables you to spend as little cash as possible while simultaneously enhancing your cash flow during the first months of operation.
The food truck will account for the lion’s share of your necessary investment. With it in place, you’ll have a reduced pool of cash available to raise for other startup fees. On average, the price tag of your food truck will consume between 75% and 90% of your original investment, leaving you with around 25% – 10% of cash to raise.
Are you tired of your business being drained by rental payments? Do not be concerned any longer!
Rental prices are a death sentence for restaurants. This is a well-known phenomenon, and it contributes to the high cost of physical restaurants. However, as compared to restaurants, food trucks have cheaper operating expenses. The absence of rent is a significant factor in this.
Apart from paying the mortgage (if you financed it with a loan), you are not required to pay rental charges in the case of food trucks! All that remains are parking fees and commissary charges in addition to your daily operating costs. These expenditures are a fraction of what you would spend in rent!
In comparison to restaurants, food trucks may be operated by a small number of kitchen personnel. Because everything is largely self-service, you won’t require additional maintenance personnel. Fewer staff equates to more net profits! Bear this in mind.
Opportunities for expansion
Food trucks can be static or dynamic in nature. This enables you to visit new areas and contribute to your progress. Growth opportunities for traditional restaurants are limited to the market potential within a circular radius around it.
Testing various locations is made possible by the fact that you are a restaurant operating on wheels! Can you imagine how many patrons you can get by being mobile?
Liquidation is made easier
Let’s cross our fingers that this won’t happen, but during the rare opportunity that the situation arrives, getting back your investment won’t be a problem! There is a market for used food trucks, and you can quickly sell your vehicle.
The issue with physical eateries is that they are a pain to depart! You can sell your tools or equipment, but you cannot liquidate one thing: the rental payments you’ve made over the years!
Food trucks are an asset; although depreciating, you can still sell them for at least $ 50,000. Thankfully, with the rise and popularity of the food truck industry, coupled with the increased demand of the market for second-hand food trucks, your investment is still bound to return one way or another! Of course, that would still depend on the actual condition of your truck.
The golden age of social media is now! Food trucks have taken over the world by storm and are still continuing to do so! Thanks to social media, more and more people are being made aware of various food concepts. This is a thing you should be taking advantage of once you hit the road.
Food trucks have gained traction during the start of the 2010s primarily because of the power of social media! The dynamism food trucks offer with its undeniable appeal gives it its viral quality! As a business owner, you can take on the world with your novel food ideas!
When all else fails, why not reinvent? Let’s face it, not all restaurants are created equal. Some stay, and some are fleeting. If your concept loses traction, don’t fret! Reinvent! This is the one reason that makes food trucks a beautiful business. Peel off your truck’s sticker, replace it with new branding and a fresh concept, and voila! You are back on the map! Coupled with some mouth-watering videos, you will be on your way towards reinvention!
The ever-changing economic climate has enabled food trucks to be a viable investment. Due to the Coronavirus pandemic, restaurateurs have been thinking of novel ways to beat the system and survive with social distancing protocols in place.
If there’s something that we have learned from the pandemic, it’s this: Open your mind. Open your mind to the possibilities of a greener pasture, even if the idea is scary. As business owners, we should be open-minded and resilient to change. Embracing the possibility of closing down your physical restaurant in exchange for a life on the road is scary, but we assure you, worth it.
The mental toll most businesses face due to this pandemic is undeniable. The stresses and difficulties we business owners face are over the top, and we believe that one way to manage it is to downsize. We’ve heard of many stories of restaurateurs closing shop and embracing the nomadic life on the road. Don’t get me wrong, this doesn’t necessarily mean you should literally pack your bags and move constantly. It just means that you should at least be open to the possibilities of exploring different options to survive.
Luckily here at Venture Food Trucks, we have been helping businesses, big and small, design, fabricate, and acquire the food truck of their dreams! Being in the industry for almost 30 years, we’re very confident of our expertise. We can help you from the planning up to the fabrication of your truck. Call us now!