My answer to What are the critical success factors of owning a food truck?
Answer by Desmond Last:
When we were planning a new run at Matilda’s in Sydney (we had 40 Food Trucks) the two most important time slots would be filled first: morning tea and lunch and on some runs breakfast.
This was because the most important factor is providing a successful and profitable service is one for which there is a quantified need.
The Food Truck will lose its advantages of Mobility, Position and Product differentiation if it parks in the wrong location at the wrong time. It should offer a menu which allows it to take advantage of the ability of a food truck to cater for a need and/or niche.
There is little point in starting a run which does not have the ability to make money as opposed to making its break-even point.
A single truck with s single operator has the advantage that it would normally be an owner-operator business. The owner can extend his run time and working hours whereas an operator who has employees will be required to meet any legislation that applies to the workforce.
An operator who supplies the vehicle with an operator who purchases the stock will still have to meet the break-even point and is reliant on operating circumstances out of his control to maintain sales.
A franchise system has to ensure the market is not only able to meet the costs of the operator but also the franchiser.
The key factor to success is ensuring you have the right business model and that will apply to the market you have identified and quantified.
The Food industry is highly competitive and has a high rate of failure.
Customers must want the service for it to succeed.
What are the critical success factors of owning a food truck?
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