Whether you are just starting a food truck, or are knee-deep in the waters of your business, it’s imperative to know the shortcomings. Like any venture, the food truck industry has its pitfalls; that’s why at Legion, we are here to help you from start to finish. Since your success is important to us, we have compiled a list of the most common reasons other food truck owners failed and how you can avoid them.
Why do food trucks fail?
Sometimes food trucks can fail to become profitable due to reasons out of your control. In most cases, however, problems are caused by a lack of preparation or misguided business decisions. Here are some of the most common reasons why food trucks fail and how you can avoid the same mistakes.
1. Cutting Corners on Equipment
The biggest leap from idea to fruition is purchasing your first food truck. It’s also where the businesses that fail make a fatal mistake. A good quality truck is a large investment, but when it’s the foundation that holds your business together, it’s not the part to save money. When choosing your food truck, focus on making sure it has everything you need to make your business thrive. Be aware of how many miles the vehicle has on it and how much more life you are going to get out of it.
2. Not Knowing Your Audience
So you have a quality truck, and you’re ready to start selling; That’s awesome, but do you know where you’re going to sell or the value of what you’re selling. Market research is a vital part of any successful business: it tells you what products sell in which areas and who and where your target audience is. Without this step, you can quickly become unprofitable.
3. Not Knowing Yourself
Not as deep of a question as it seems, but just like a relationship, if you don’t know who you are, things can go south. To start, narrow down exactly what needs your business is trying to fulfill for your consumers, and make that extremely clear. From your sign to the products you offer, if you’re a bakery, all it should take is one look to know what you sell. If you have a confusing name, or your range of products is too varied, you could end up losing customers.
4. Not Marketing Your Business
You can have top of the line products, fantastic state-of-the-art equipment, but if no one knows your name when you are starting a food truck, it’s going to take a lot longer to make a profit. Social media isn’t going anywhere, and if you aren’t maintaining a presence on all the big ones, you’re missing out on a ton of business. If you are wholly unfamiliar with social media marketing, there are plenty of online resources or people to hire to help you out.
5. Buying Cheap Equipment
After already discussing not skimping on your truck, it should come as no surprise that your equipment is no different. If you try to save money on this step, you’ll end up spending more in the long run. Quality kitchen equipment is built to last and increase productivity. There’s a reason why quality food truck equipment is so important; your employees and customers will thank you for this investment.
Set Yourself Up For Success
Legion food trucks is more than a manufacturer. We are a business partner who is invested in your success. When you work with us, you not only get a state-of-the-art food truck, you also get decades of industry experience on your side. We will help you with everything from equipment selection, marketing & branding, and even health department permits. Contact us today to learn more or use our interactive food truck builder to generate a free quote.