Why Food Truck Businesses Fail

It seems impossible in this day and age that a new food truck on the street could fail. Food trucks are everywhere, and foodies love them. But there is a lot more to operating a food truck than cooking up great meals and taking your customers’ money. If you dream of being food truck owner, consider how to these common problems could crater your business.

Your brand is boring The food trucks making news today feature a consistent look and a memorable logo. Some have cheeky names that make customers smile – and try the food selection. Your food truck will need these same marketing tools in order to attract attention and grow a customer base.

Your truck breaks down – If your food truck is not reliable, you have big problems. There is no faster way to lose business than to Tweet that you will be a certain location and not show up (or contract for a catered party and arrive late).

You’re not on top of diverse city health and parking codes – Health and parking codes for food trucks vary from city to city, and some of them are onerous. By not knowing and sticking to those codes, you can set yourself up for problems and a slew of costly citations.

You lack HR skills, training and/or policies –As the business owner, you are responsible for establishing policies, training your employees and then supervising them to ensure they do their jobs properly. Allowing your team to work willy-nilly – or failing to provide good customer service – can cause your business to bomb.

 You don’t know your market – Before you ever shop for a food truck, you must be aware of your customer base and how you’ll sell your product. Do you want to go out on the street every day or do you prefer catering special events, such as weddings, business meetings and celebrations. And once you make that decision, you must have a solid plan for generating business and making sales.

 You’re undercapitalized: This may be the top reason new businesses fail.Unforeseen events and added expenses are a normal part of doing business, so a business owner must be prepared anything. Keep some cash on hand for those difficult days (broken appliances, a new truck transmission) which are sure to come.

The food truck industry is booming, but not every food truck fan should become an owner. If you want to launch a successful food truck business, find an experienced consultant to help you get started. Mike Mikhail, owner of several LA food trucks and restaurants, frequently consults with new and potential food truck operators, preparing them to succeed in the industry. His guidance can help newbies avoid painful, expensive gaffes. To discuss his consulting services, contact Mikhail at one of his food truck operations:

Hang 10 Tacos – 855-5-Hang-10

Greenz on Wheelz -855-6Greenz

The Hungry Nomad -877-NOMAD-10

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