What would be involved in starting a food truck business?

My answer to What would be involved in starting a food truck business?

Answer by Desmond Last:

For 7 years I was the General Manager of Matilda’s Food Trucks in Sydney. When we sold the business for several million to Spotless.We had 40 Trucks and 90 staff.

The business can be very profitable. A very good operator with the right product range and customer base can take up to $10,000 on a payday. The average would be about $3–4000 a day.

The advantage for the customer is time and credit. A good operation will arrive at the same place on time everyday. For verified customers credit can be given.

If you intend to operator a stationary truck then you will have to get permission form the local council and you will be competing against established retail outlets.

The right business model is essential to succeed. The business has high barriers to entry and staff turnover is a constant variable.

The Trucks have to be well-engineered and look presentable. A mobile bakery will require 240v power. That means a generator and/or an external source of power. Delivery of baked products is the norm.

The food has to have a rotating menu and compete in price with local outlets.

The seasons have a big effect on sales. The cash-flow is good and enables creditors to be paid quickly allowing you to obtain best buy prices.

However the costs of running are high. Economies of scale play a large part.

You can have one truck or the optimum for your profit maximization. Anything in between will lose you money and quickly.

Like all businesses identify your market before you begin.

What would be involved in starting a food truck business?

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