3 Reasons Why Most Food Trucks Fail
The food truck industry is booming. In 2019, there were an estimated 4,490 food trucks operating in the United States, up from just 2,500 in 2014.1 With such strong growth, it’s no wonder that many people are drawn to the food truck business. However, what many people don’t realize is that most food trucks fail. In fact, 80% of food trucks close within the first 18 months.2 There are many reasons for this, but today we’re going to focus on three of the most common: lack of planning, unrealistic expectations, and poor location selection.
Lack of Planning
One of the biggest mistakes that new food truck owners make is failing to plan properly. A food truck is a business, and like any business, it takes a lot of work to get off the ground and be successful. You need to have a well-thought-out business plan that includes your target market, your menu, your pricing, your marketing strategy, and your financial projections. You also need to make sure you have the proper permits and licenses in place before you start serving food. All of this takes time and effort, and if you don’t plan accordingly, you’re likely to find yourself struggling when things don’t go as expected.
Another reason why so many food trucks fail is because their owners have unrealistic expectations. They might think that they can make a fortune overnight or that they’ll be able to quickly build a large following of loyal customers. The reality is that it takes time to build a successful food truck business. You need to find your niche and perfect your menu before you can start making serious money. And even then, it’s important to remember that slow and steady growth is usually the best way to ensure long-term success.
Poor Location Selection
Finally, another common reason for food truck failure is poor location selection. Many new owners think that they can just set up shop anywhere and start serving food. But if you want your business to be successful, you need to carefully select the right location. You need to make sure you’re in a high-traffic area with plenty of potential customers nearby. You also need to make sure you’re not competing with too many other food trucks or restaurants in the area. If you choose a poor location for your truck, you’ll likely find yourself struggling to attract customers no matter how good your food is.
If you’re thinking about starting a food truck business, there’s no denying that it can be a great way to earn a living. However, it’s important to remember that most food trucks fail within the first 18 months. This is often due to lack of planning, unrealistic expectations, or poor location selection. So if you’re thinking about starting a food truck business, be sure to do your homework first and make sure you have a solid plan in place for success. Thanks for reading!
Why do most food trucks fail? Excess Cost of Operations
Most food trucks fail because they don’t get the cost of operation under control. Some owners enter the industry expecting food, labor, and the vehicle to be their initial costs. However, other expenses can slowly add up, especially if you do not have an established budget.
What is better a food truck or trailer? If you want a lot of space, flexibility, and low maintenance, food trailers are the way to go. If you prefer to stay mobile, food trucks may be a better option. Consider the costs too. A food truck is going to be more expensive and will require more repairs compared to food trailers.
What time is The Great Food Truck Race on tonight? “The Great Food Truck Race” returns to Food Network on Sunday, June 5 at 9 p.m. ET. You can also watch it on FuboTV and Philo. The 8-episode 15th season brings the teams together in southern California as they compete to see who has the best food truck.
Can you make a lot of money with a food truck? Food trucks make an average of $250,000-$500,000 annually, or $20,000 – $42,000 monthly. That might seem like a big range – so this guide will help you to calculate your food truck’s revenue and profit potential. Along the way, you’ll develop some strategies for maximizing your restaurant’s income.