People say that the catering business is something that you can’t go wrong with since folks are always hungry. However, this is not always true, because of the competition out there. You also have to find your market. This is why there is a growing trend towards food trucks as opposed to starting a restaurant. If this is done properly, the owner will definitely succeed.
Statistics will tell you that the majority of restaurants will fail within the first year of operation. There are many reasons for this. Owners often don’t have enough experience or they are in the wrong location. Often, they are highly qualified, but it is difficult to know a lot about cooking, business, marketing as well as managing your staff on a day to day basis.
When you are dealing with food trucks, you will find that the capital that you have to put up is not nearly as much as that of a risky restaurant operation. In fact, one can start off with as little as $50, 000. Of course, it is not all plain sailing. Marketing is important. Owners have to decide on the niche. They have to know what they want to sell, and they have to look into the location. It is also important to realize that this is going to be hard work in the beginning stages.
Like everything else, there is going to be competition, but this is also about how you market yourself and make yourself unique from everyone else. One has to focus on branding, should they want to stick out from the rest of the crowd. If you have a look at the Chef Shack Ranch, this basically just says sophistication. It started in 2008. Items like chocolate mousse and smoked brisket really make this different.
One has to do their market research because of the competition, trying to find out what the best situation is for your particular business. Many folks who rush into this finds that the profit margin is not huge. However, doing your homework will change all of this. This is what Curry Up Now in San Francisco found. Since 2009, they have grown, buying an additional 5 trucks. They focus on a low budget, and are still able to produce some fine food.
There is obviously a big demand for well produced food that is also tasty. Many people need something like this on their lunch break as they are on the run. Some people even enjoy entertaining customers and clients with something like this as opposed to a formal restaurant which you can’t always relax at. A food truck is easier to set up, and you can basically start off small. Starting off like this can be a lot less stressful because there is always time for you to grow.
Image by Brendan Bombaci