The Common Food Truck Misconceptions You Must Know as an Owner
The concept of a food truck gained a lot of popularity in the past decade since it is a viable startup option way cheaper than opening a full-fledged restaurant. There are many benefits of running a food truck, including savings in rentals, flexible locations, no need for seating arrangements, and more. However, there are many food truck misconceptions you need to know about before deciding to start your own food truck business. Running a food truck is not easy, and often, many people fail due to their unrealistic expectations.
You Can Make Profits Easily
Food truck owners generally earn less than restaurants. This is because customers have to pay only less for food truck items, and unlike a restaurant, they also do not stay around longer ordering more food. Food truck owners also have to bear a lot of expenses, such as permits, event fees, gas, promotions, and supplies, which further bites into their profits. They may even have to deal with unexpected factors like heavy rains, parking issues, or heat waves. Customers always expect food trucks to offer them the best dishes at low prices. Food truck owners need to work long hours cooking, managing, and serving customers if they are to earn big profits in the future.
You Only Have to Put in Fewer Work Hours
This is another big misconception people have about food trucks. Many people get into this business, thinking this is an easy way to earn big money in a short period. They realize quickly that this business involves a lot of hard work and that there is heavy competition. There are many tasks a food truck owner must attend to like preparing before lunch service, serving lunch, cleaning up, and going to stores for supplies. Then he also has to prepare before dinner, serve dinner, and clean up after dinner. He then has to prepare for the next day and spend time doing marketing and other office work. All these add together to make a 16-hour workday. The owner does most of the tasks initially so that he can get sufficient funds to hire someone for help.
There are No Legal Requirements
Like restaurants, food truck owners follow more or less the same requirements. They also have to pay taxes regularly. They need to register with the state government and also require licenses, sometimes even multiple ones as they are always on the move. Furthermore, food trucks also pay property tax on their vehicle and have to pay taxes in whichever city or state they travel to. There also are frequent health inspection checks as the trucks move about a lot.
They must also place their health inspector grades at a place visible to customers, failing which their businesses could be shut down. Apart from these, if they prepare their food elsewhere, their food also undergoes inspections like any commercial kitchen. If the owner fails the test, the truck will be shut down, or the owner moves to another kitchen.
Food Trucks are Easier to Run than Restaurants
Food truck owners will tell you that it is more difficult to run than a restaurant. Most owners work anywhere between 16 to 18 hours a day.
Things a food truck owner has to face
- The space inside the truck is very less when compared to restaurants. All activities like chopping, cooking, assembling, and serving meals are done in limited space.
- If the truck breaks down, especially at serving time, it results in losses.
- Parking is always a serious problem with food trucks. The trucks deal with the law, restaurant owners, and others to get suitable parking spaces.
- The owner often does all the hard work while restaurants have many staff members.
Parking Your Truck is Easy
The rules are strict in most places for food trucks. They have to follow the city law to avoid paying penalties for illegal parking. Parking restrictions are also present, and many areas have limitations on the time a vehicle can stay in one spot. There are also restrictions preventing trucks from parking at certain distances from a restaurant. There is another stipulation regarding restrooms stating that food trucks parking at a spot over an hour must be accessible to a bathroom nearby. This uncertainty over getting the best parking spots can result in a lot of stress.
Expenses are Low for Food Trucks
Many truck owners start their business thinking they will incur only low overheads. But often, the owners spend on repairs to maintain their trucks in good condition. They spend on fuel, buy supplies, incur accounting expenses, pay taxes, spend on staff, and maintenance. All these make running a food truck a costly affair.
Delicious Food will Attract Crowds
This is another myth as drawing huge crowds takes more than just tasty food. It needs a sufficient amount of planning and hard work to attract customers. People today have many dining options, and that makes them more selective about where they would like to eat. The food truck owner must creatively promote the food and the truck to attract maximum customers. The owner also has to manage meal preparation carefully. If the truck runs out of food in the course of serving a large number of customers, it can create a bad impression. The owner has to leverage the internet and social media, along with word of mouth publicity, to attract more people to the truck.
Learning about these food truck misconceptions is a must if you want to achieve your goal of running a profitable food truck business in India. If you are well prepared for these challenges, nothing can come in the way of your success. Our team, at 3E Accounting, provides cost-effective, customized business set up services to all enterprises, including food trucks. We are reputed India business startup experts, well-versed in business incorporation processes, and provide support for all accounting, taxation, and compliance matters. We are eager to answer all your queries and will provide all details about our services if you contact us.
3E Accounting India
3E Accounting India is a corporate service provider and accounting firm assisting clients with company formation and incorporation. We offer company secretary and business-related services in India.
