When you run a food truck business, there are several variables you’ll need to consider if you want to succeed. Food trucks can succeed in all kinds of settings—urban centers, small towns, beach destinations, ski resorts and many more. 

Before choosing where you want to run your truck, be sure and consider the pros and cons of each. In this post, we’ll talk about the benefits and drawbacks of operating your truck in a big city. While there’s lots of opportunity, you need to know all of the risks as well.  

1. Big City Competition is Fierce and Plentiful

Los Angeles is one of the food truck capitals of the world. You can earn lots of money in a market like this—but keep in mind that the competition is also plentiful and intense. 

There are more food truck businesses in operation, many of which have been around for many years. Customers in these cities are savvy, have high expectations, and lots of diverse options to choose from. They are often looking for unique food of high quality. 

2. Zoning Laws

Running your food truck in the big city means you also have more zoning laws, permits, and red tape to satisfy. 

Understand the laws of your state and city when it comes to starting a food truck business. Knowing the laws will show you where you can operate and under what regulations. You’ll avoid fines and getting shut down. 

3. Plentiful Opportunities

Not only are there more food truck customers in the big city, but you’ll also have more catering opportunities. You can set up a spot at concerts, art events, business conventions, and the myriad of other social activities that take place. Just be sure and find out what the requirements are for getting approved for these types of events.

When you know your customers’ niche, you can reach them in new and different ways. There is plenty of room for growth when you embrace food truck culture and run your business with your customer in mind. 

4. Build Your Entrepreneurial Skills

Having a food truck is an excellent first step into the world of entrepreneurship. Running a truck lets you become your own boss and teaches you strategies for generating your own income. Several professionals who own entire fleets started with a single food truck. 

Taking your food truck to a larger city will certainly challenge you in your entrepreneurial skills. You will have to find more ways than ever to think outside the box and grow your revenue while competing with so many other creative food entrepreneurs.

5. Easier Than a Restaurant

Perhaps your major goal is to start a brick and mortar restaurant in the big city. This is expensive just to get the business started, and you’ll also have large overhead costs. 

A food truck provides you a test run to show people what kind of dishes you specialize in. You can then take these earnings, and use it to build capital to start a brick and mortar location. 

Best of all, you’ll already have a built-in customer base. 

Big City Food Truck Pros and Cons

These food truck pros and cons can let you know where you stand when you’re thinking of setting up shop in the big city. Running a food truck is a labor of love, so always do your research and be informed in order to make the right decisions for your business.

Ready for a quote on your first truck? Or want to add another on to your food truck fleet? Contact us today for a free quote.

Want more food truck advice? Check out more blog posts here!

Thinking about starting a food truck? Request a free custom quote and one of our food truck specialists will help you design the truck of your dreams.

Stay up to date on everything Custom Concessions has to offer! Like us on Facebook and follow us on Twitter.

The post Food Truck Pros And Cons: Operating Your Food Truck In A Big City appeared first on Custom Concessions.

Starting a food truck, just like any other business, requires a start-up investment. You need money to purchase your truck, get permits, and buy kitchen and food supplies.

There are several ways to raise the money to get your food truck venture off the ground. You can find investors, you can use cash on hand, or you can save up the money over time. For many owners though, the most convenient way to get a food truck going will be via a business loan.

Keep reading to find out how to get food truck financing.

1. Start With Market Research and a Business Plan

Before starting any business, you need to do your homework. You need to understand the local market in terms of competition, demand, pricing, costs, regulations, and more. You need to determine if your business idea is viable and what your opportunity will be for growth and success.

Then, you can build a business plan. This is an essential document that lenders or investors will look at to judge the credibility of your future business. 

Fortunately, there’s much less risk involved with a food truck than a traditional restaurant. Your overhead costs will be far cheaper, you’ll have fewer employees, no dining room, etc. This will make it easier to get financed.

2. Small Business Loans

Can you finance a food truck through a traditional bank or SBA loan? The answer is yes, assuming your business plan is well-written and you have an acceptable credit score.

First, you’ll need to come up with a dollar amount of how much startup money you will need. Then, do some research on the various types of loans available and figure out which one will best meet your needs. 

3. Private Investors

If you get turned down for a small business loan, you can seek private investors for food truck financing. There are multiple options here. 

First, you can try to find an angel investor. They will provide the startup funds you need in exchange for equity in the business. They may also allow you to pay back your debt over time instead of taking equity.

There are also peer to peer investors. These are organizations that invest in small businesses they see potential in. They basically provide loans like a bank but aren’t a bank. 

4. Crowdfunding Campaigns

Another option for food truck and food truck equipment financing is crowdfunding campaigns. This provide a great way to make money if you’re turned down by the bank and traditional investors. Crowdfunding relies on larger groups of investors all contributing small amounts to pool together the necessary funds.

Contributors can be rewarded with stock in the company, free products, etc.

5. Friends and Family

Can you finance a food truck without applying to banks or investors?

Yes, you still have options. Consider getting funds from people in your personal life. These include friends, family members, neighbors, and co-workers. 

You should still provide a business plan to show them how serious you are and that their investment won’t be wasted. This may mean you need to finance a smaller or more modest food truck instead of the huge truck that costs more, or cut startup costs elsewhere.

So, Can You Finance a Food Truck?

Are you ready to start a food truck restaurant? If so, we can help. Now that you know the answer to financing your food truck, let’s talk about getting you on your way. Contact us today for a custom quote!

Want more food truck advice? Check out more blog posts here!

Thinking about starting a food truck? Request a free custom quote and one of our food truck specialists will help you design the truck of your dreams.

Stay up to date on everything Custom Concessions has to offer! Like us on Facebook and follow us on Twitter.

The post Can You Finance A Food Truck? How To Get Food Truck Financing appeared first on Custom Concessions.

Photo by Guillaume Gryn_DVS on Unsplash

Are you tired of working your tail off in a hot kitchen, only to be paid a pittance for your hours? Are you exhausted with your demanding boss, and wishing that you could do what you love at work—cooking—but do it for yourself instead of for your manager?

If so, then it sounds like you’re the perfect candidate to start taking command of your career and open a food truck that you can run on your own. Before you do so, however, you need to be aware of these seven food truck regulations so that your newly-opened business does not run afoul of the law.

1. Get a Vendor License

The first thing that you’ll need to do is get a vendor license from your state. This is a legal certificate that gives you the right to own and operate a restaurant entity. The process for applying for a food truck license will be different depending on your state.

2. Tax ID

The next basic regulation your business will need is a tax ID. This identification number is what allows you to collect sales tax from your customers. The government always wants its slice of the pie, so make sure that all of the transactions are subject to local sales taxes.

3. Commercial Driver’s License

Depending on the weight of the food truck that you operate, you may need to get a commercial driver’s license, or CDL, to drive it. If you choose the right vehicle for your food truck, however, you’ll be lucky enough to avoid this step.

Practicing for and getting your CDL is no joke. Most state DMVs take the road test for a commercial vehicle very seriously, and the bar is set pretty high.

4. Mobile Food Vendor Permit

You’ll need to apply for your state’s mobile food vendor permit. For many states, the number in circulation at one time may be limited. Thus, you must apply for this permit as soon as possible to ensure that you get to the top of the pile if there’s a waiting list.

5. Food Manager Certificate

Next, some state or local ordinances require that you receive a food manager certificate. This qualifies your business to handle, store, cook, and sell food. You’ll need to pass a basic inspection to prove that your food operations are healthy and safe.

6. Food Purchasing Protocols

You should know that in some states, food is not allowed to be cooked in a vehicle. That means food trucks can’t prepare the food inside the truck—the food needs to be prepared on something that isn’t a mobile conveyance and can then be sold from the truck. 

If that’s the case, you’ll have to prove food purchasing and preparation processes when you apply for your mobile vendor permit.

7. Parking Permit

Last but not least, remember that you can’t forget one of the most basic regulations of all: parking! The last thing you want is for your food truck to be booted, towed, or otherwise immobilized. Ensure that you are permitted to park and have the right authorization wherever you set up shop.

Food Truck Regulations You Need to Know

There you have it! Now that you know these food truck regulations, you’re all ready to start your business and keep it on the right side of the law.

If you’re ready to look at a vehicle for your food truck operations, contact us for a free quote!

Want more food truck advice? Check out more blog posts here!

Thinking about starting a food truck? Request a free custom quote and one of our food truck specialists will help you design the truck of your dreams.

Stay up to date on everything Custom Concessions has to offer! Like us on Facebook and follow us on Twitter.

The post 7 Food Truck Regulations You Need to Know About appeared first on Custom Concessions.