My answer to What process should you follow to define your target market for a food truck business in India?
Answer by Desmond Last:
When we wanted to expand Matilda’s in Sydney I as the CEO would ensure that our food and delivery system matched the expectations of the customers whom we wanted to use our service.
Most people have fairly defined food choices. So unless you have a completely new producer stick to what is most popular.
You must not overprice your products and the quality must be not the best you can achieve but the best in your industry sector.
We were mobile trucks. When we sold the company to Spotless Catering we had 40 trucks. Our trucks went call to call.
Food trucks cannot be everywhere at once. There are three times a day when they will be able to maximise business. Breakfast, Morning Tea and Lunch.
Therefore you must build you run around those three times. If you are a static truck then you must ensure you do not end up in a price war with the existing competition.
Building sites are excellent for building a run around but you must be prepared to restructure the run when the construction is finished.
Mobile Trucks have the advantage that they can go to the business where there are the most customers. This saves the Workers time.
Static trucks have the advantage that you do not lose driving time and are less expensive to operate.
You will need to identify a need. To do that you must ask people what is they want.
Then you have to ensure that need is sufficient to make money.
Other definitions are.
Will the need be constant?
Will it be seasonal?
Will the competition compete on price which you cannot match.
Will you be able to maintain quality and condition due to weather conditions?
You must also account for holidays and bad weather.
Food trucks provide a good return if operated professionally.
Operator Training is very important and will increase sales.
However, they lose money very quickly when you do not do your homework. If you do not have the quality systems in place to minimise stock spoiling, minimise waste food and to ensure stock and cash control for theft then you will not make money.