My answer to I am planning to start a food truck business, what are the things that I need to gather along ?
Answer by Desmond Last:
Before you invest any money in a food truck business first ensure that you have a potential market large enough to make you a profit that will compensate you for all the hard work involved.
I was the General Manager and CEO of Matilda’s with 40 food trucks in Sydney so I know from 7 years of 7 days a week experience that food trucks are not a ‘walk in the park. I worked in a Gold Mine in the Northern Territory of Australia where grown men broke down and wept – that was easier than Matilda.
But saying that we made a regular good profit and eventually sold it to a National Company – Spotless Catering.
There are two types of operation, Static in a fixed location and dynamic in that you drive from location to location.
Both will represent a considerable investment of both your time and money.
Your operation is unlikely to be ‘greenfield’. You will be competing against established food outlets who are not going to ‘shut up shop’ just because you have turned up. in fact as happened with our competitors ‘QuickSnax’ in Sydney the competition may get a little heated at times.
In addition to the cost of your truck(s) you will need a base with a coolroom, a kitchen, a dry goods store room and an office as well as an area for your drivers/sales persons and operatives.
Depending on the type of operation you may also need an ice-machine.
You will also need somewhere to park your truck(s) and unload/load and wash them daily.
All your areas which store and prepare food will have to be licensed as will your trucks. You will need a good stocktaking and sales accounting system.
You will be required to have public liability insurance as well as ‘workers compensation insurance’.
So know and cost your market before you start.
Then compile a business plan with a profit and loss per day/per week/per month/per year. Without that level of cost and profit monitoring you will go broke in the first 12 months.
Be prepared to babysit every single part of your busiess for the first 12 months. if you do not then you many as well hand in the keys to the bank.