Do food trucks have a future as small business start-ups?
They are the growing rage in delivering food to the masses – street food – not your ordinary hot dog cart – but a fully equipped truck that delivers gourmet food but without the brick and mortar costs. These trucks have been gaining in popularity and have gotten traction in a number of cities in North America. And for an industry (restaurants) that boast one of the hardest types of businesses to get financing for, it may be just the ticket for an economy that has hit a rough patch. The failure rate for bricks and mortar establishments is estimated to be any where from 57 – 59%.
There are a number of cities that are now allowing these type of businesses. And there is a growing movement in Toronto to allow them here. Check out the recent article that appeared in the April 28, 2012 Globe and Mail entitled "When Toronto is famous for its street food, you can'thank this man" by Chris Nuttall-Smith. This article is available via TPL's subscription to Canadian Business and Current Affairs. You will need your library card to access. Toronto Life took a look at the Toronto food street scene as well.
Things to consider before jumping into this business, based on a search of a number of wesites,include:
- Start up costs. While the cost is about half of starting a bricks and mortar restaurant, it is still a significant investment.
- Permits. Is this type of vending business allowed in your potential city?
- Gas prices. Enough said.
- Weather conditions. Will people line up in the rain and snow to buy your product?
- Competition for choice locations.
There are many websites available for more information regarding experiences running trucks in the cities that allow them.
And check out a few recent titles at the library:
Bon appetit!
One thought on “Do food trucks have a future as small business start-ups?”
There are lots of things to be considered before opting to hire a food delivery truck. For instance, if your food business is getting popular in other communities, and if there is a high demand from out of town, then, buying a food delivery truck is an option. Not only does it make your product mobile, but it can also make your food business more visible to consumers and food enthusiasts.