Many people are making great profits from the food truck industry. This segment of the food and beverage industry is on a roll, and many have seen people lining up in front of food trucks to get something to eat. Considering that each of these people is spending up to $20, it should be apparent why the industry has such a great profit potential to offer anyone bold enough to give it a try.
But there is a question worth considering – is the food truck industry going to be as profitable in future as it is at the moment? Is this nothing but a passing fad? The truth is that nobody knows for sure. Still, that doesn’t mean it is not worth looking into some factors that might affect the future of this industry.
As far as fads go, the food truck industry certainly the signs of being an obvious one. Take television shows like Food Truck Face Off, Eat Street, and Food Truck Paradise as examples. These shows are giving this industry a lot of hype. There is quite a large number of such shows, and with great prizes to be won, and these shows seem to be growing in popularity as time goes by.
For instance, the Great Food Truck Race on Food Network pitches various entrants into the food truck industry against each other for a chance to win $50,000 and a food truck. The movie “Chef” was also quite a hit, and it was inspired by the food truck industry. As long as such shows keep drawing fans and participants; people will keep getting interested in being part of this industry and everything it has to offer.
The shows make many people believe that they have what it takes to run their own successful food truck businesses. So yes, the media has done plenty to make it seem like the food truck industry is a huge fad.
This begs the question, what would happen if these shows and all this media attention was to suddenly go away? Would the monetary appeals of this industry go away as well? This is most probably not the case. The benefits of mobile food trucks extend far beyond the pop culture appeals this industry enjoys through the media attention the industry is getting at the moment.
From the look of things, mobile food joints have become part of our culture. So, even though some mobile food truck owners will enter the industry and leave at will, the industry has a relevance that goes beyond television shows and movies. In fact, even the food trucks that shut down might have upgraded into brick-and-mortar food joints. Actually, some of these businesses might still hold onto their food trucks as a way to market and promote their brands and inspire greater growth in their fledgling food sale businesses.
A food truck business is pretty easy to start as the entry costs are pretty favorable. Additionally, operating a food truck business does not need a lot of staff. To top it off, there are lower risks of running a food truck business than many other kinds of food businesses.
Unfortunately, some people enter the industry based on these factors alone, which turns out to be quite a mistake when they find out they are not ready to face some of the hurdles that come with running a good food truck business. Although the business might be off to a great start, over time, issues like truck and equipment maintenance are bound to become an issue.
Generally, cities that have high rent rates have a greater number of food trucks. Usually, that growth is fueled by favorable laws that encourage the food truck industry to grow. That said, the development of food truck businesses within the city can vary considerably.
Still, there are also cities where the laws are outdated and certain regulations can make it challenging to run a successful food truck business. Therefore, even as food truck owners in other cities are having an easy time running successful businesses, their counterparts in some other cities are generally not as fortunate.
Nevertheless, the food truck industry is currently worth billions of dollars; and these businesses are eating into the profitability of traditional restaurants. This is why some restaurant owners are pushing for laws that will make food trucks stay as far as possible from their businesses.
But some of these restaurant owners are not seeing food trucks as a threat to their businesses, but rather as an opportunity to grow their profitability. These restaurant owners have therefore started food truck businesses of their own as a way to boost the income they get from their physical restaurants. Such restaurant businesses do not feel that there is a need to put restrictions on mobile food businesses, as other restaurant owners do.
And it is not just restaurants that have to worry about the competition they get from food truck businesses. Traditional catering companies are also getting strong competition from these mobile food industry operators. However, even though the two sectors might compete for the same customer at some point or another, there is very little likelihood that the food truck industry will push the catering industry into oblivion.
Still, the flexibility of the food truck industry is not to be ignored. Food trucks can easily go beyond serving food on the curbside and enter other food sale niches.
Just for the record, evidence points to the fact that the food truck industry is not going anywhere. It is not just a fad as some might have you believe. Food trucks are also part of our culture, and they give many food lovers a chance to enjoy new experiences.
In any case, food trucks and food carts are nothing new, they have been around for quite a while. Therefore, their place in this industry is assured, especially in consideration of the fact that the business environment is growing more favorable to the food truck industry as a whole.
However, what has to be the most compelling benefit of this industry is that people who want to try their hand with food sales will find the food truck industry to be their best option given the low entry costs and the ease with which aspiring entrepreneurs can set up these businesses. So, all things considered, the food truck industry will be around for many many years to come.