There’s no question that the food truck craze is in full bloom. Still, we’re seeing more and more food truck owners opening up brick and mortar stores and saying goodbye to their mobile trucks. We started to wonder – what’s the reason for the change? Here are some of the reasons we found.
Some communities are making it difficult and / or expensive to run a food truck
Some communities welcome food trucks as a great way to boost the economy, while others – often under pressure from local brick and mortar restaurants – put up as many obstacles as possible for people trying to open a food truck. This can include requiring expensive permits for a food truck to operate, requiring food truck owners to cook food in a commercial kitchen, and requiring food trucks to not be parked in the same spot for more than an hour at a time.
These requirements can not only get tedious to follow, but they can get very expensive. Since many people open a food truck versus a brick and mortar store because the startup cost is typically lower, it’s easy to see that if the cost of operating a food truck skyrockets, then companies are likely to move on to another business model.
Competition is getting more serious
Just a few years ago, the number of food trucks on the roads were a fraction of the trucks on the roads today. While trucks used to have little competition in other trucks, today there are often parking lots filled with different trucks. The profit margin in most restaurants is relatively low, and for food trucks it’s often even lower. Having this competition can shave off much-needed revenue.
It’s more expensive to open a food truck than many expect
For some potential business owners, the idea of running a food truck is a great one because all they have to do is buy a truck, cook some food, and get going, right? Wrong. Not only must you have a truck, but you must have the right ventilation equipment, cooking equipment, warming equipment, cash registers, etc. What’s more, there are startup costs involved in getting the raw ingredients to make food, gas to get around, etc.
The good news is that companies like Hoodmart are here to help lower costs and make it possible for more people to afford to get into the exciting world of owning a food truck.