Always wanted to get in the business of Food cart but don’t know how to start? If yes, this is the guide you need to go through. In this article, I am going to explain what you need to do from very start to get into the food cart business.
Food on wheels business is trending nowadays whether its a bustling city or small town. Business owners are making good money as street food fans are loving this concept. Food cart business includes a Food truck or mobile food cart. This large vehicle contains a kitchen to cook and serve the food. There are lots of food carts for sale which you can buy for your food cart business.
If we talk about figures then one can make upwards of $500,000 per year in annual revenues by a successful food truck. Starting this business can costs from $40,000 to a couple hundred thousand dollars. Food cart industry is of $2.7 billion and it has got 12.4% growth in the last 5 years. So, indeed its a good business to start.
But it’s not that easy to run Food truck business. Lots of food truck business owners start this business is much easy than running a restaurant. But this business has its own demands. Some of those demands are doing paperwork and facing legal restrictions, finding a good chef and truck mechanic, etc.
Before starting your food cart business you must know these 5 Important Marketing Strategies for any business.
Steps To Start a Food Cart Business
Step 1. Market Research
Market research is always necessary before starting any business. Or we can say market research is the most essential part of starting a business process. What do you need to do in market research?
- Ask yourself where will you set up your food cart. However, this business has more mobility with a food cart but the right location is the most important factor. You need to find such a spot where customers can find your food cart easily. In a big city, you can find some spots where you can park in for a few hours. You can also go for spots which are run by food truck collectives but they charge some fees. Always look for the demand of food truck, foot traffic in the area to start your Food cart business.
- A business can be easily successful if there is less competition. You don’t want to start your food truck business where already lots of Food cart business are going well. You won’t get customers from the starting day of your Food truck so you need to apply various strategy to spread the word about your business. You can mail postcards offering different types of free stuff.
Step 2. Choose your Food Cart Concept and a cool, easy to remember name
You can choose Food cart concept as per your interest and personal experience. The concept will decide how much efforts you need to provide quality food and different ideas to beat your competition.
You should always get an eye-catching logo for your food truck. This helps you in the branding of your Food truck business. There are lots of Food cart concept which you can choose. Some are Ethnic Fusion Concept, organic or health food concept, pizza food truck, etc. You need to research what people are demanding in that specific area. Choose a great name for your Food cart business which should be memorable, interesting and BIG.
Step 3: Create a Business Plan before Starting Food Cart Business
Not only for Food cart business but also creating a business plan is most important for starting any business. The business plan will decide how you are going to run and scale your Food cart business. What do you need to do while creating a business plan?
- Look what is the scope of Food truck industry in your region and what is the concept is trending.
- Identify the market trend in the food cart industry, your target market, and all the competitor analysis.
- How you will going to manage and run your business.
- What menu you will keep and ingredients, and procedures of making food products and what is the pricing you are gonna keep.
- How you are going to market your food truck business to grow it.
- The most important thing you should note is funding to start the food cart business. Keep a plan of funding the amount in the business. If funds are not sufficient then how much you need to borrow.
So these are some steps which you need to follow in order to start a food cart business. Remember that food cart business looks easy but it’s not always. However, if you research the market well, provide good quality food and manage all the business efficiently then you can take your food cart business to the great success. Indeed Food cart business has lots of opportunities to make a great amount of money.