Do you love to cook and have a few delicious recipes under your belt, but don’t have the budget or desire to open up a full restaurant?
Then you may be a great candidate for the food truck industry! It’s certainly a good time to invest in this type of business, as the global food truck market is expected to grow at a compound annual growth rate (CAGR) of about 6.8% until 2028.
So, the demand may be there, but is opening up a food truck a good idea in your case? Let’s take a look at some of the pros and cons so you can decide for yourself.
Pro: You’re the Boss
Many people can only dream about being their own boss, but you get to do just that running your own food truck. You get to decide on the menu, hours, location, ingredients…everything is under your control!
Con: You’re the Boss
While it may sound nice on paper, being your own boss isn’t for everyone. Since everything is under your control, you must be willing to put in long hours to ensure that you’re giving enough attention to every area of your business.
You don’t have anyone guaranteeing you a certain amount of money for your time either. Therefore, if you have an especially slow day, you may not be able to take home much of a profit.
Pro: Less Startup Costs
It can be significantly less expensive to own and run a food truck than your standard brick-and-mortar restaurant. Rent and utilities alone can cost you an arm and a leg, and then there’s the kitchen equipment, tables and chairs, staff…the list goes on.
With a food truck, on the other hand, the main startup cost is the vehicle. Your operational costs are then mostly limited to gas, food, supplies, and perhaps wages for an employee or two. A smaller space requires a smaller investment, making a food truck a great option for an aspiring chef on a budget.
Con: You’re Stuck in a Small, Cramped Space
A food truck isn’t just small – it can also be quite cramped. Once you add in all the kitchen equipment, a POS system, and your ingredients, you may not have much room to move around inside. If you don’t do well in confined spaces, working in a food truck may not be an ideal fit.
Pro: There’s Lots of Opportunity
Working out of a food truck offers lots of flexibility in terms of operating hours and location, so it’s important to use this to your advantage. For example, you could set up shop outside of a stadium when there’s an event going on to take advantage of the crowd coming or going, or park outside of large companies during lunch time.
Con: There’s Lots of Competition
Since the startup costs are low and there’s a demand for quick and convenient meals these days, the food truck industry can be a rather competitive one. Therefore, if you don’t have a unique, in-demand menu for your business, you may have a tough time finding success.