Restos on Wheels: Why You Should Invest in Food Trucks
Humans began peddling food shortly after knowing how to cook. Street food has been around for a long time now, so there’s really nothing special in seeing a hotdog cart near your workplace.
With the advancement of modern technology, streetfood traditions have changed mostly for the better. From carts and kiosks, the streets have made way for large food trucks that can serve quality meals like a traditional restaurant. This would explain why the food truck industry is gaining traction, with Nashville’s Grilled Cheeserie and LA’s Kogi BBQ at the forefront.
If you’re planning to venture into the food business, you might as well consider food trucks as a great commercial real estate investment. Let’s look at the most important reasons:
1. There’s always constant demand
People will always be looking for food either to satisfy their hunger or try something exotic for their palate. Either way, as long as they know you’re selling food, you don’t need to go far in search of customers – although you can because your business is literally on wheels!
2. Cheaper to set-up
One advantage food trucks have over sit-down restaurants is that you don’t need commercial space just to set up shop. This means you won’t have to pay rent or commercial property taxes while your business is in operation. Moreover, you only need minimum start-up capital to acquire a food truck along with the equipment and supplies you need.
3. Lesser manpower costs
Most food trucks are family-owned with the parents and children running every aspect of the business, from kitchen duty down to accounting. One thing’s for sure, you don’t need a lot of people to operate your business. Most food trucks have less than five employees, so it won’t cost you too much in terms of salaries and benefits.
4. Better reach and adaptability
One weakness of a sit-down restaurant is that it has to stay in one location. It’s fine if you’re in an area where there’s less competition. As more restaurants emerge, your market share decreases until you decide to close your business and transfer to another area. This is hardly a problem for a food truck business. You can simply drive to a street and cater to customers there. You can then transfer to another location where there are people craving for shawarma or whatever it is you deem your best-seller.
5. Cheaper and effortless marketing
Your food truck doubles as an advertising channel. Since you’re driving around town, you can ensure greater awareness for your business. This strategy works best together with social media. But the best part of it all is that you can take your food truck to a food fest or any other event where you can show off your menu and reach out to foodies.
6. Greater flexibility and control
Since they don’t require a large investment to begin with, food trucks can provide you with better control over your finances. Plus, you don’t need too many employees or spend too much on maintaining your equipment and the food truck itself. Everything is pretty much low-cost, so you only need to worry about preparing your menu, creating new food items, and guarding your secret formula!
Considering these advantages, you might want to invest in food trucks as a form of commercial real estate. For sure, though, you still need to process the right licenses just as you would when you rent or buy commercial spaces. Nonetheless, you can still secure a sustainable and highly profitable business model.