Why do food trucks fail?

Like all businesses, there are trends to be found in the food truck industry for success. But, there are also trends in the failures. Even some of the best franchises to own can be subject to failure if they aren’t properly prepared.

So what are some of the most common reasons that a food truck would fail? We’ve done some research and have outlined them here for you. Armed with the causes of failure, you can be better equipped to avoid these potential problems and increase your chances of success.

1. Identity Crisis

Your food truck needs a vision, but remember that it is not about you. That may seem odd to hear since you’re the owner, but it’s true. Your personal tastes and opinions don’t matter, because food trucks are customer-based and focused. You should be open to ideas and opinions besides your own.

Being open doesn’t mean being guide less, though. As previously said, your business needs a vision. Be open to ideas and feedback, and adjust what can be adjusted within reason, but don’t throw your whole business’ vision out in the process. Establish your brand and stick to it, and make changes that don’t compromise it.

2. Bad Openings

At some point in your life, chances are that you’ve heard the old adage, “You never get a second chance to make a good first impression.” If the opening launch of your food truck is bad, your business is going to suffer before it even has a chance of getting off the ground.

You’ve got a new group of employees that have likely never worked together, and some may have never worked a food truck at all. You may be new to the process yourself. So what’s the solution?

Try a soft opening to make sure everyone can work together neatly, efficiently, and peacefully. Invite friends and family to a mock opening and have your team work together, following recipes and providing the same standard of customer service you expect them to in the real world. It’s a great way to ease your team into the type of work they’re going to be doing and get them used to the people they’ll be working with.

After the mock opening, make any adjustments you need to make, address any problems or concerns you and your team might have now that they’ve been tested, and then work on your true, grand opening to the public.

3. Poor Management

This doesn’t just refer to any managers you have or you, this refers to the entire operation, from inventory to employees to how present you are as the business owner.

Poor inventory management can easily bankrupt you if you aren’t careful. Your inventory, the food, and ingredients in your truck are your biggest, consistent expenses. Keep track of your daily finances and adjust your inventory accordingly – if Tuesdays are slower than Saturdays, don’t load the truck up with the same amount of inventory, as it may spoil.

Additionally, monitor your employees and manage them effectively. Hire a consultant or experienced truck owner to guide you on how to properly train your employees to not only deliver excellent food but provide amazing customer service as well.

Poor Ownership

You bought the business, so you should be able to sit back and enjoy the profits now, right? Wrong. Many food trucks fail because the owner of the truck has this mindset, but there’s very little that’s worse than an absentee owner.

That’s not to say you shouldn’t be able to be away for a day or two to recharge your batteries every week. You should be prepared to do the same work your employees do as often as they do. But, you should have also put people, tools, and systems in place that will allow you to safely take a day off when you need to without the truck being run into the ground.

There’s a balance of work and monitoring when you own a food truck, so you have to find it.

4. Lack of Market Research

As with any business, a lack of market research and analysis can be the downfall of your food truck. You should thoroughly examine any potential locations where you plan to sell your products. Do surveys, check out local businesses, and more to make sure that there is a demand for your product and that you won’t have an intense amount of competition.

Even once you’ve established yourself in a favorable area, your work isn’t done. You should work to stay on top of local and business trends to keep customers and gain new ones.

Lack of Marketing

Staying on top of trends is part of marketing, and good marketing leads to successful businesses. Use tools to connect with your customer base.

Social media is a great way to do this – create a business page for your food truck on Facebook, Instagram, Periscope, and any other media outlet you know your customers are using. If you need help managing these accounts, you can hire a social media influencer or expert and have them keep your customers engaged and informed.

5. Recipes

You may know your recipes for every item on your menu, but do your managers? Your employees? Chances are they don’t, and even if they do, they’re likely to alter something, miss or add an ingredient that wasn’t in the original recipe, or worse.

A big part of the success or failure of a food truck is a lack of consistency where the food itself is concerned. Whether you’re running a burger truck or selling gourmet pretzels, you have to have consistency in your recipes. So if all of your truck’s recipes are hidden away in your head, and you aren’t always around or available, there’s nothing in the truck to guide your employees in the right direction. This means your food truck could be in trouble, just like that.

Write the recipes down and have them stored in the truck. Laminating the pages is a good idea, too, since grease splatters and other fluids or staining materials could ruin or obscure the pages otherwise.

Conclusion

There are many reasons a food truck franchise could fail. But, if you want a successful franchise, all you have to do is keep these factors in mind and do what you reasonably can to fix any problems you can.

If you want to give running a burger truck a try and you’re in the Philadelphia area, you can submit a form to Zac’s. They’re looking for eager, informed franchisees!

Zac's Burgers is presently not selling franchises and does not have a certified franchise disclosure document.  Zac's is offering licensing opportunities, however, potential licensees must meet all federal and state requirements.

There are an endless amount of reasons why someone would want to enter the food truck industry. Unfortunately, there are just as many reasons why food truck businesses fail.

You might want to enter this fine industry because you have always wanted to be a chef, or because you have always wanted to own your own business, or because you see this industry as a great business opportunity, or because you think the food truck industry will lead to you opening up a sit-down restaurant, or everything above and in between.

No matter what the case, you likely have a great reason to join this industry.

Purchasing Your Truck

While purchasing a food truck might be a great idea (if you plan everything out, that is), it is also a big risk.

While some people decide to go with a cheap food truck, and we highly recommend you don’t follow those slippery footsteps, there are plenty of folks who go the smart route, the high-end route.

Some people sink in this industry because they aren’t passionate enough, and they don’t hustle as a result. Some people fall because they get a cheap food truck, and it ends up costing too much money to fix when it inevitably breaks down (and also hurts the business’ reputation in the process).

RELATED: How To Take Your Food Truck Buying Search To The Next Level. Looking to find the mobile kitchen of your dreams? Check out this article to end that search.

Knowing the Business

However, what is the No. 1 reason why food truck businesses fail in this fine industry? How about this: They aren’t business savvy enough. They enter the food truck industry thinking they are great cooks, and that might be true, but good cooking is all they know.

They don’t know how to make a business plan. Maybe they don’t know how to manage employees. They struggle in the inventory department. They don’t know how to market, whether it is on social media or a more traditional avenue. Speaking of social media, they don’t know how to use, or don’t even use, networks like Facebook and Instagram.

Here’s the deal, and it’s very important to take these words to heart: If you want to succeed as a food truck owner, not only do you have to be a wizard in the kitchen (the food is your No. 1 product, after all), but you also have to know how to run a business, and that’s the part where so many people come up short.

What it Takes to Succeed

If you want to succeed as a mobile catering owner, then you need to know what it takes to succeed in the industry. Yes, you are going to be doing plenty of adapting and learning on the job, especially if this is your first business venture, but you have to do your homework before you even think about buying a mobile kitchen. You have to know what you are getting yourself into.

If you don’t know how permits, regulations and food truck rules work in your area, and if the concept of not being able to park wherever you want is news to you, then you aren’t ready to enter the industry.

In time, and with a lot of research, you can prepare yourself, but don’t just enter this industry because you want to cook food. Let that be your starting point, and then figure out how to run a business.

If you need more help when it comes to running a food truck business, then let the below articles be your guide. You can also venture over to our articles section. Good luck out there, and make sure to do your food truck homework!

Things To Consider When Buying A Food Truck

“Has most of your free time consisted of you browsing food trucks for sale in hopes of purchasing one and then finally entering the mobile kitchen industry? If so, you are certainly not alone, but there are some things you need to keep in mind.”

Ingredients You Have To Have If You Plan On Joining The Food Truck Industry

“The food truck industry is not for the faint of heart — you might have heard. There is no guarantee you are going to make it in this industry. If you do, then you can expect to work a whole lot of hours (depending on your situation, 60 hours a week might be the minimum). You have to really want to succeed if you are going to make it in this industry.”

“How bad do you want it? If the drive and motivation is there, then awesome! However, there are also other important ingredients you have to have if you plan on joining this industry.”

Don’t Let These Ingredients Go Under The Radar If You Are New To The Food Truck Industry

“First-time food truck owners are likely worried about many different things when trying to step foot in the food truck industry. It’s only natural. As a result, some key ingredients tend to go under the radar.”

“First and foremost, many mobile kitchen owners are worried about getting a good deal on a food truck, as they should be. They are also likely thinking about their recipes, menus, business plans, where they will actually set up shop (the location) and permits and regulations. Those are all very, very important when it comes to making it in the lunch truck industry. You can’t run your business without a truck and the food, and a food truck business owner would be lost without a business plan.”

3 Social Media Networks That All New Food Truck Owners Need To Be On

“If you thought you were just going to buy a food truck and cook food all day, then, well, you are terribly mistaken. Yes, that is going to be your main job — there’s no doubt about it — but you will have so many other duties on top of that when you finally break into the food truck industry.”

“For example, you are going to have to train — and manage — your employees. You will also have to set up catering gigs, and negotiate deals with prospective clients as a result. You will also have to run a business, because you are, in fact, running a business. Operating a kitchen might be the most important ingredient, if you will, but mobile kitchen owners have an endless amount of tasks and duties.”

Interested in getting into the food truck industry? Request a quote from us today to get going!

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For more food truck advice and inspiration, check out the rest of our blog here.