While it may be a dream come true for an anfoodie entrepreneur to open a restaurant, there are many hurdles that you must jump to make that dream a reality. Costs are a huge inhibitor for many budding restaurant owners.
Instead, considering a food truck business may be just the balance of reward and risk. In fact, there are several advantages to finding a food truck for sale instead of renting out or buying a physical restaurant location. Cost is a major driving factor, but there are other significant advantages as well.
Capital Investments Are Lower
The typical brick and mortar restaurant will incur start-up costs in the range of $500,000 depending on the city and location. That type of capital investment is simply out of reach for many aspiring restaurant owners.
A food truck, on the other hand, will cost, on average, roughly $80,000. Even the most expensive trucks will reach about $200,000.This means that most high-end food trucks will still cost less than half of opening your own brick and mortar restaurant.
Overhead is Less Expensive
You have the advantage of just having a few employees as a food truck business. There is no need for wait staff, bus service, or clean-up crews in a food truck. The cook and perhaps one or two other people is enough to staff a food truck on an average day. Having fewer employees makes overhead significantly less expensive.
Food truck businesses also do not need to worry about some of the more traditional overhead expenses that regular restaurants face, like utilities and premises liability insurance. Saving on these costs definitely adds up over time.
You Have an Opportunity to Earn More
Food trucks can do very well because they serve a food void between sit-down restaurants and fast food. They offer quality food at lower prices than most traditional dining establishments. Because their products and services are in demand, many food trucks can make significant revenue relatively quickly.
A 2013 review of food truck revenue by Priceconimics indicated that a successful food truck could earn upwards of $500,000 per year.
An Outlet for Creativity
Food trucks are flexible. They may not have set hours, menus, or marketing. Owners can experiment with food, advertising techniques, locations, and the best hours for their business. It is a playground for creativity and innovation.
Starting a food truck business can also be a good stepping stone to eventually creating your own more traditional restaurant. You can try out foods now, so you know what your customers consistently return to order for creating that staple menu, making the jump to a restaurant a bit easier (and financially safer).
If you are going back and forth about whether finding a food truck for sale or investing in a physical restaurant is the right choice for you, you should seriously consider the benefits that come along with owning a food truck.