How to start a Food Truck business

Commercial Vehicle Truck Van Lorry

1. Research Your Target Market

Planning typically comes down to the difference between a good food truck and a short-lived endeavor. An ounce of mitigation will make a lot of difference in your company's profitability. It's important to make sure that you fill a void in the market or have a demand when starting your food truck company. Consider accessible room and kitchens when doing initial research on how to start a food truck company.

Evaluate Available Space

One of the main benefits of operating a food truck is versatility. Where they are you will reach your clients. It's also critical, however that clients know where you are and can easily locate you. Many food trucks have a go-to place where, with some regularity, they park.

Check Out the Competition

Once you have a sense of the physical space available in your city, get an idea of what kitchens are available. You don't want to be the third falafel food truck in town, for instance. You want to choose a food idea that other food trucks in your region don't do. But you want to choose a cuisine that has widespread appeal as well.

To get a sense of what is common and what days of the week or times of the day are busiest, visit food trucks in your city. For example, it could be a busy time if many people commute to your town for work, breakfast or lunch hours. If that is the case, it is a good idea to pick food items for breakfast or lunch. Meanwhile, nights and weekends may be busier if you are in a tourist or college town, so you may be better off going for a dinner or dessert menu.

2. Choose a Food Truck Name

-Make sure the name of your food truck is unique: if there's another restaurant or food truck with the same name, you risk breaching a trademark.

-Make your name descriptive: Your name should describe your food, theme, and idea so that your prospective customers know what to expect immediately.

-Make the name recognisable and simple to pronounce: This is particularly important for food trucks because for most of their business they rely on word-of-mouth. Avoid long, misleading names. A reasonable rule of thumb for the name of your food truck is four words or fewer.

-Choose a name that can expand: Whether you add more trucks, new menu items, or open a traditional restaurant, your business name should be fun and catchy, but still be able to grow with your company.

3. Create a Food Truck Business Plan

-Business description: Identify your region's food truck industry, the current outlook and potential opportunities, your idea, style, and other markets and industries that can have a direct effect on your company.

-Business analysis: Identify market patterns and evaluate rivals in the food truck industry, your target market.

-Organization and management: Clarify how you plan to operate your company, including every main partner's usual operating procedures, personnel, and responsibilities

-Product line: Detail the menu, ingredients, and processes, as well as the food processing costs and how much you intend to sell it for.

-Marketing plan: Explain how your food truck company will be promoted. Word-of-mouth, influencer marketing and social media marketing include essential marketing platforms for food trucks.

-Request and proposal for funding: State how much funding you need to start your food truck and exactly how you plan to finance it. Specify how much money you need to borrow if you are applying for a business loan.

-Financial projections: for at least the first three to five years, break down your estimated costs, gains and losses.

4. Get Licenses and Registrations for Your Food Truck

There are at least two types of licenses and permits that you need. One is the business license, and the other is your foodservice permit.

5. Finance Your Food Truck Business

It can cost anywhere from RM40,000 to RM200,000 to start a food truck company, depending on your venue, the cooking equipment you need and the type of truck you buy. For example, brand-new, custom-fitted trucks would cost a lot more than second-hand ones. Based on results, the table below provides you with a rough estimate of the itemized costs involved in starting a food truck company.

6. Design Your Menu Board

The easiest way to highlight your food is with a menu board that is mounted to the side of your vehicle. Your brand and theme should represent the layout and design.

7. Purchase, Insure & Outfit Your Food Truck

Ensure that your truck is fitted with equipment that’s up to code, including:

-Refrigerators and ovens are working properly

-Hot and cold water are available with adequate pressure

-Fire extinguishers and first aid kits available on board

-Proper storage for food items

8. Market Your Food Truck

Once you have your truck and your location all set, marketing your truck is the final step in starting your food truck company. An effective marketing strategy for food trucks includes a blend of online and conventional marketing techniques, including marketing for social media, sales at local festivals, mailing flyers, and creating a website.