Author: launchdeckadmin

Finding consistent crowds presents one of the most significant obstacles when operating a food truck. Festivals provide a viable solution, bringing thousands of people to one place. All food truck vendors have to do to attract potential customers, and they’ll turn a profit, right?

Making money, even at festivals, isn’t always straightforward or guaranteed. It depends on the event, location, and crowd demographics, to name a few factors. If you’ve ever wondered, “How much do food trucks make at festivals?” here are your answers.

The 5% Rule

The festival’s size offers the best indicator of success. Food truck vendors can expect to sell one meal for every 20 people at the event. That translates to 5% of the total attendance.

While parking your truck at a large event doesn’t correlate with success, it does help. The more people see, smell, and hear about your food, the better your chances of building a line of paying customers. Vendors also benefit from a closed environment, where patrons can’t leave the festival grounds and are obligated to eat from vendors on-site.

Finding the Right Event

If you operate a food truck, you’re going to get a lot of requests to attend events. While you may feel tempted to say yes to every opportunity, pick your festivals selectively. For instance, selling your barbecue may not gel at a yoga gathering. The same goes for selling bento boxes at a Fourth of July parade.

Find festivals with a significant number of people from your target demographic. That means matching the attendees’ tastes with the food you sell. Here are two examples of how choosing the right event can influence how much a food truck makes at a festival.

Event #1: Music Festival

Attendance: 25,000 people

Expected Sales: 5% or 1,250 transactions

Gross Sales ($7 per transaction): $8,750

Operating Costs (33% of food): $2,888

Net Income: $5,862

Event #2: Local Farmers Market

Attendance: 1,000 people

Expected Sales: 5% or 50 transactions

Gross Sales ($7 per transaction): $350

Operating Costs (33% of food): $115.50

Net Income: $234.50

The difference between attending a music festival and the local farmers market is night and day. The concert’s massive attendance draws a diverse and ravenous crowd that helps your food truck make a sizeable profit. Events such as Austin City Limits can attract more than 450,000 people! So even if you have to pay a fee to vend at a music festival, the overall net income makes up for the initial investment.

Consistency Is King

Setting up shop at one large festival is a start. Doing it at several festivals is even better. Earning the most net income from festivities means attending as many events as possible.

It’s not unheard of for a food truck to earn $50,000 or more from a multiple-day festival like Coachella or Bonnaroo. Each event runs four to six days, with crowds reaching upward of 100,000 people. The competition to get into those festivals and attract foot traffic is fierce, but with the proper execution, they can provide a substantial reward.

Most food vendors can expect to make between $1,000 and $2,000 in net income from a festival. The exact numbers depend on the festival attendance and food, so the range serves only as a rough estimate. Keep in mind that selling $5 hot dogs requires triple the sales as $15 pizzas to generate an equal net income.

Maximizing Your Income

Food truck vendors should expect a 5% sales rate when attending large festivals, which translates into hundreds or even thousands of dollars. Maximizing income requires choosing the right event with the right demographics to ensure you make as many sales as possible. If you want to harness the power of a better vending experience, check out the Truckster mobile app.

If you are not yet a food truck owner and thinking of taking the plunge, check out our Food Truck Resources Page to see how Truckster can get you started on your own food truck success story!

Truckster Vendor App

Opening a business involves talent, hard work, and a bit of luck. According to Investopedia, 20% of new businesses fail within the first two years of opening. That number jumps to 45% within the first five years and 65% for the first decade. If you’re in the restaurant industry, you have it even worse, at 60% failure in the first year, and 80% in the first five years.

Operating a successful food truck is hard but not impossible. If you’re asking yourself why food trucks fail, you’re on the right track to running a profitable business. Here are the seven most common ways food truck owners fall short and how you can fix them.

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.

Some easy-to-overlook costs include:

• Auto insurance
• City, county, and state permits
• Fuel
• Legal fees
• Liability insurance
• Marketing
• Storage
• Vehicle maintenance

A budget is your best friend when keeping costs under control. Noting all your monthly operating expenditures keeps you aware of how much money you’re spending versus earning. You don’t have to be an accountant to start a budget, either. Just open an Excel document and start listing expenses.

Poor Location

Food trucks succeed when they go where the people are. The more people there are in a given area, the more likely a vendor is to have a customer. As a rule of thumb, food trucks sell to 5% of people during a festival or large event.

A poor location doesn’t attract enough customers or the right customers. Consider your target demographic when choosing a location. If you’re parking outside a college bar, sophisticated dishes like sushi or beef Wellington shouldn’t be on the menu.

Some of the best places to set up shop include:

• Bars
• College campuses
• Designated food truck parks
• Farmers markets
• Festivals
• Nightclubs
• Office buildings or business districts
• Parks
• Sporting events

Doing Too Much

The mantra of every food truck should be KISS: Keep It Simple, Stupid. Too many owners want to show off their creative flair with extensive menus and intricate dishes. If you’re going to serve complicated items that you’d find on a tasting menu, you’re better off opening a brick-and-mortar restaurant.

Successful food trucks require a streamlined menu with straightforward dishes. Create flavorful items without going overboard on preparation, cooking, or costs. Keep your list to 6 to 12 dishes, and you’ll save yourself time and money.

Lack of Social Media Presence

Social media and food trucks go hand in hand. You need to actively tell patrons where you’re going to be and when. The planning lets them build their schedules around you and even make advanced purchases with mobile ordering.

Many failed food trucks neglect social media or do not understand how to leverage the platform. Establishing a presence on major apps like Instagram, Facebook, and Twitter provides a centralized point of contact between you and customers. Social media is where your target audience hangs out, so get on it if you want to attract new and loyal customers.

Poor Management

Running a food truck is a sweet gig, but it is still a business. And that means you have to take the business and management of it seriously. That starts at the very beginning. Have a solid business plan before you start slinging tacos. Don’t be afraid to invest in yourself too, not just the truck. Consider taking some online business courses and be sure to check out Truckster’s Food Truck Startup Guide (coming soon) to tee yourself up for success. Once you’re all in, use the Truckster Vendor App to manage orders, track money flow, get catering gigs, and reach more customers.

No Online Presence

Maybe you’ll be lucky enough to be a part of a full time food truck park, or in a high traffic, tourist, or corporate area. But even if you are, you still need to be able to set yourself apart from the competition with an online presence. This is the modern era of marketing, and it’s more than just being on Facebook. If potential customers are looking for food trucks in that area before they go, you’ll immediately have a leg up on the other food trucks if those customers can find your truck online, see your menu (with correct costs), some food pics, and read reviews. That’s what Truckster is here for. Create a profile, add quality content, and be sure to always post your location- sell yourself!

Your Brand Image

Spend the extra effort to style your truck to look appealing and legitimate. But you can’t just slap on some decals and forget it! The image of your food truck is vital for success, and ties in with some of the other points already listed (being online is key to looking like you have it all together). Just like a restaurant, customers pay attention to the details of your establishment as soon as they walk in, or in our case, walk up. This means keep your truck washed regularly. We’re talking a couple of times a week. If you have a trailer, don’t forget to keep your pull truck clean too. If you use the bed of the truck for empty boxes or supply storage, cover it with a tonneau cover or camper shell.

 

It doesn’t end outside. Customers can often see inside your food truck either through the window or any door that may be open. Make sure to keep your kitchen tidy, and you and your staff looking sharp. Also, your brand image isn’t just about your physical appearance, but how you engage with your customers. When you’re a local food truck, you’ll likely get local repeat customers. Always be friendly and upbeat. Make a connection with your customers, see them become regulars, and your popularity will naturally grow- remember, word of mouth is a powerful thing!

Are You Up For the Challenge?

Roughly half of food truck operators fail in the first five years, in large part because of poor planning. They fail to consider all the operating expenses and the importance of marketing and finding reliable locations. When you take all these factors together, it’s challenging to turn a profit.

Strategic planning goes a long way in making a food truck successful. We’re here for you. Truckster offers a free mobile app that helps you take care of all the little things from accepting mobile orders to creating a menu. Download it today from the Apple or Android stores. If you are not yet a food truck owner and thinking of taking the plunge, check out our Food Truck Resources Page to see how Truckster can get you started on your own food truck success story!

You have a dream of opening a food truck. Getting that dream off the ground requires a one-of-a-kind menu. It serves as the central component of your restaurant on wheels, setting the tone and taste for your culinary identity.

While it’s tempting to flex your creativity with a lengthy menu, most food truck owners only serve 6 to 12 items. How many items should be on your food truck menu based on your business model? Here are the answers you need to make an exciting and economically viable menu.

Determine the Central Menu Items

The first step to create the perfect menu involves picking out a few central items. These dishes should be the staples of your food truck and inspire people to come back again. If you haven’t done so already, do some market research to ensure your food truck idea differentiates your business from other vendors.

The central dishes should revolve around a single concept. Serve items with a unified theme, like sandwiches or French food. For instance, your truck may combine both ideas and create a menu with raclette grilled cheese, croque madame, jambon-beurre, and pan bagnat.

Consider Preparation Time

You can have all the delectable dishes you want, but a successful food truck menu demands practicality. Your best-selling raclette grilled cheese may earn $12 per transaction, but it also takes 20 minutes to make. A more straightforward item, like jambon-beurre, containing a baguette, ham, and butter, earns $8 but takes a fraction of the time.

Increased preparation time doesn’t mean you should forsake a raclette grilled cheese. It requires a highly efficient kitchen environment for it to be feasible. Unless you’re trying to compete with established fine-dining restaurants, you should err on the side of caution and keep dishes simple. Shorter preparation and cooking times will save you time and money during a lunch rush.

Be Realistic

A healthy dose of realism will give your food truck its best chance at success. If you only operate during lunchtime, serving 20 items doesn’t make sense. Even if you’re serving something as simple as hotdogs and brats, making things less complicated remains in your best interest.

You and your associates should streamline your menu to make service faster. If you’re serving hotdogs and brats, keep the sides to only two options, like French fries and grilled corn. The economic approach allows you to reduce waste and turnaround times.

Creating a Menu

Creating a physical menu is an art form. Subtle psychological tricks can ensure you get attention from passersby. Here are a couple of ways to make the most of your display space:

• Remove dollar signs from the price.
• Use prices that end in .95 instead of .99.
• Be descriptive with your food. Don’t write “French fries.” Write “Freshly sliced Idaho potatoes, double-fried in duck fat and seasoned with chives and sea salt.”
• Avoid creating columns.
• Put the central menu items toward the top.
• Create brackets around the same dish in two different sizes.

Find Out What Works Best for You

No hard and fast rules exist for picking the number of items for your menu. While many food trucks serve 6 to 12 dishes, you should find a number that ensures quality over quantity. Keep preparation times and logistical considerations in mind as you create your menu.

Don’t reinvent the wheel when deciding how many items should be on a food truck menu. Check out our Food Trucks tab for mobile restaurants across the country. You can see complete menus from other vendors and how many dishes they’re offering. And for any new food truck owner, don’t forget to sign up as a Truckster Vendor, create a profile, show your location, and see the hungry customers roll up to your truck!

If you are not yet a food truck owner and thinking of taking the plunge, check out our Food Truck Resources Page to see how Truckster can get you started on your own food truck success story!

Before you park your food truck and serve your first meal, you need a business plan. The blueprint tells you where, when, and how you’ll serve food. The business plan should also include your biggest ally: a target audience.

If you’re wondering how to define your food truck’s target market, you’re not alone. Every food truck operator needs to find the right people for their menu. Here’s how Truckster suggests incorporating a target audience into your business plan.

Consider Your Menu

Your menu sets the tone for your food truck. It reflects your core competencies and culinary mission. If you establish a gourmet hotdog and brats operation, you’ll attract plenty of foodies and businesspeople. The menu may turn off everyday Americans who expect to pay $2 for a hotdog and vegetarians and vegans who want meat-free alternatives.

The composition of your menu says a lot about your audience. Some items, like pizza and pasta, have universal appeal, so your desired customers can span across all generations, income levels, and backgrounds. If you have a truck that serves niche food, like vegan or Venezuelan dishes, you’re homing in on a smaller but arguably more passionate crowd. Read our blog on How Many Items Should be on a Food Truck Menu to learn more about good practices for perfecting your menu.

Determine the Target Demographic

Determining your target demographic involves coming up with a semblance of your average customer. That means gauging their tastes, spending habits, and the unique selling points that attract them. Some of the categories you’ll use to build your average customer include:

• Age
• Education
• Income
• Interests and lifestyle
• Job status
• Location
• Marital status
• Religion
• Sex
• Size of household
• Values

These factors can inform your business choices and even the food you serve. You may look at the information and find potential customers because no one is serving that food nearby. For instance, if there’s a sizeable Venezuelan population in your town but no Venezuelan vendors, you have a golden opportunity.

Don’t forget to factor your geographic location into business decisions. Selling hot cocoa won’t fare well in warm climates like Phoenix and Houston. Similarly, chilled gazpacho doesn’t have a great chance of success in northern cities like Minneapolis or Boston.

Some questions to ask yourself when identifying a target market include:

• How many people are in your potential market?
• How many competitors are in your local market? How many serve similar food?
• What are your strengths and weaknesses compared to competitors?
• What are your pricing and gross margin targets?
• What’s your plan for attracting more customers after opening?
• Have you done a soft open? What were the results?
• What sources are you using to calculate your target market?

Leverage Social Media

Social media can make or break a food truck. Harnessing the connective power of Twitter, Facebook, and other platforms gives you intimate access to legions of loyal followers. If you haven’t already created accounts on all the major social media sites, you should.

Each platform comes with advertising resources that let you tailor your ads to your desired consumers. If your average customer is an affluent, college-educated man in his 40s, you can customize your content to people like that. The pinpoint accuracy lets you get the most out of your advertising dollars when targeting your ideal audience.

Have a Plan and a Target

A successful food truck understands its target market. It delivers one-of-a-kind food that people can’t find anywhere else. The key to bridging opportunities and getting results is a detailed business plan that outlines who you’ll target and how.

Do you want to connect with more customers? Do you want to expand your digital presence and develop more catering leads? Download the Truckster Vendor App and start building a better business today.

If you are not yet a food truck owner and thinking of taking the plunge, check out our Food Truck Resources Page to see how Truckster can get you started on your own food truck success story!