With the trend in the food industry turning enthusiastically for food truck offers, it would seem like a win-win situation to invest in this kind of business. However, not all food trucks are successful and according to food experts and critics there are a few top reasons for failure:
Wrong Menu Selection
Being a copycat is going to doom a food truck within the first year of operation unless it tastes infinitely better than the food it is trying to copy. Another error would be trying to have too much on the menu or having a menu that isn’t cohesive. For example, you shouldn’t mix Mexican with Chinese unless your focus is fusion food.
Your menu should match your location and your location should be one where foot traffic is heavy. One of the challenges of having a food truck is that local laws and ordinances tend to give food trucks a specific location to operate. This means everyone is in or around the same area and competition is fierce. It also means that there is major jostling for prime spots among food truck owners or if the food trucks are allowed to move, being in the right spot at the right time becomes something akin to a race.
No Business Plan
Enthusiasm and drive is great but without a business plan, the chances of owning a successful food truck business dwindle considerably. A business plan is like your guide; it’s not just a feasibility study. It will be your road map as you go through the first 2 years in operations and you will be constantly updating it as you pick up speed with your food truck business.
The State of the Economy
Although you can’t always blame the government for a poor economy, it is much harder to succeed when people aren’t spending money except on essentials. This is another strong reason for creating a business plan, the right menu, and finding the location with the best revenue potential. Food is an essential need and if you can price your products so it is within the meal budget of a family man or working mom, then you have a better chance of attracting new customers every day.