In the franchising world, it can pay off to keep tabs on trends. One noteworthy trend in the restaurant industry right now is the food truck. The industry as a whole has increased about 4x since 2012, reaching revenues of around $2.7 billion.
If you’re considering a restaurant franchise, this is excellent news.
The food truck has many things going for it. Let’s look at a few reasons why you might want your franchise to have four wheels.
1. Initial Investment is Lower
Logically, you understand that it costs a lot less to get a miniature restaurant on wheels up and running than a 5,000 square foot commercial space in the heart of your city’s shopping district. Of course, you’ll have your franchise fees, but beyond that, overhead and startup costs for a food truck business can be significantly more affordable.
2. You’ll Never Be Limited by Location
Think about this: if you sign a five-year lease on commercial space for a restaurant, then you find out that the club next door plays heavy metal music all evening long, you may be set up for failure before you even begin.
But with a food truck, location is flexible. If the park you tried last week didn’t bring many sales, you can try a busy street corner. You can also let your fans know where you’ll be on social media so that they’re ready and waiting for you.
3. You Can Test the Concept with Less Risk
If the franchise you buy into has both food trucks and restaurants, investing in the food truck can be a less risky way to assess the opportunity before investing in a full-fledge restaurant. You may not be sure if locals will buy into the whole Korean Sushi Taco Popsicle trend you’re trying to start, so testing the waters with a food truck is a great way to find out.
4. You’ll Learn a Ton About the Restaurant Business
If you come into the restaurant industry with little to no experience, a food truck franchise will give you everything you need to know within a microcosm. You’ll quickly learn how to gauge how much food inventory you need for the night (especially after running out of products mid-shift a few times), and you’ll know how many employees you need to keep customers happy and lines moving.
All in all, a food truck business is a great opportunity for you to become an entrepreneur with less financial risk. Brands like Kona Ice provide you with a low-risk franchise opportunity you can take — quite literally — anywhere!
Susan Guillory is the President of Egg Marketing & Communications, a marketing firm specializing in content writing and social media management. She’s written three business books, including How to Get More Customers With Press Releases, and frequently blogs about small business and marketing on sites including Forbes, AllBusiness, The Marketing Eggspert Blog, and Tweak Your Biz. Follow her on Twitter @eggmarketing.