When it comes to starting out in the food industry, one of the biggest questions is whether to open up a brick and mortar restaurant or take your food on the road with a food truck business. Right now some major brick and mortar restaurants are starting to close their doors, but the food truck industry is continuing to grow. So is a food truck a good investment
Is a food truck a good investment?
The investment in a brick and mortar restaurant is a high-risk gamble because of several key factors including poor staff, lack of startup funding, and lack of food industry experience. The food trucks have a lower startup investment than regular restaurants. Also starting small with a food truck can allow you to control your brand and image and retain customers.
Benefits a Food Truck vs. a Restaurant
Food trucks can be very profitable and make good business ventures. But are they better than a brick-and-mortar restaurant? Here are some things to consider:
Quality Control
When you are operating a food truck, you have better control over how the food is prepared and stored. You control the open and close schedule and potential daily specials. However, in a brick and mortar restaurant, you could be dealing with customers who liked their food a week ago, but now they don’t like it today. Part of the blame rests on cooking equipment and time of day. In a food truck business, you have stronger quality control, you can set the presentation of the food when it leaves the truck.
Money and the Bottom Line
Opening a brick and mortar restaurant could end up costing you up to $800 per square foot. However, a food truck business could cost about $200,000 on average, depending on where you buy the food truck. The bottom line is, investing in a food truck will usually require a smaller upfront investment. It’s also worth noting that food trucks have lower overhead costs which means greater profit margins. Of course, this doesn’t exactly mean than food trucks are more profitable than restaurants, but they are generally considered safer investments for new business owners or those who don’t want to take out a business loan.
Ability to Relocate at Any Time
With a food truck business, you can relocate to where the crowd is, whether it’s a festival or a local farmer’s market. This gives you the opportunity to reach new audiences and test different markets.
When you have a brick and mortar store, you have one shot at picking a location and hoping will bring in the crowds. Bad locations or concepts that don’t appeal to the surrounding demographic can often be a death sentence for brick and mortar restaurants.
Choose Your Move Wisely
Is a food truck a good investment? Are restaurants better? A food truck business allows you to expand your customer base by being able to travel and having better exposure than the average brick and mortar restaurant. You can adjust your menu at any time with a food truck to adapt to your customer base and cultural tastes. With a brick and mortar restaurant, your customer base only comes from the nearby area, but you can draw your food truck customer base from anywhere when you properly market it.
Legion Food Trucks can help you find the right food truck when you are ready to start your restaurant on wheels. Visit our website to learn more and apply for food truck financing today!
