True, the investment required to get a mobile food business off the ground is significantly lower than what’s required of a traditional investment. However, just like any major business venture, it entails inherent risks that are just as real
This is especially true if you have a brand new food concept that you haven’t tried to sell to any real customers yet. Red Hook Lobster, Big Gay Ice Cream, Kogi BBQ – these food trucks took a lot of risk by starting with a unique food concept. HOWEVER, with greater risk comes greater reward. Nowadays, these names are ranked at the top 10 biggest and most popular food trucks in the country.
So should you take the plunge and invest in a brand new or used food truck? Fortunately, you don’t even have to answer that question! Unlike 5 or 10 years ago, you don’t have to risk $50,000 to $100,000 of your life savings to test a concept. Thanks to food truck rental companies, you can start a mobile food business minus the 6-figure gamble that buying a new truck entails.
One of the BIGGEST advantages of food truck rental is flexibility. By renting instead of buying, you can:
– Sample different marketing and promotion strategies until you find one that best suits you. This is one of the hardest aspects of running a food truck business. And when you rent instead of buy, you won’t experience as much pressure in getting this part right.
– Change your truck’s menu and food items. If your unique food concept falls flat on its face, you can go back to the drawing board and craft a new menu that, hopefully, will be an instant hit. On the other hand, if the concept proves to be a hit, you can just keep going and going.
– Figure out if you GENUINELY want to operate a food truck for next 5 to 6 years. Believe it or not, a lot of people jump into the mobile food industry…thinking that it’s a lucrative industry. It’s NOT – some will profit, others will go out of business. Usually, however, it’s the latter and the best they can do is sell the food truck. By renting, however, you can get a feel for business and tell if it’s something you want to keep and maintain for the years to come.
Bottom line: the only thing you’ll risk is the cost of renting the food truck, which is infinitely MORE manageable than shouldering everything from the truck purchase, maintenance, permit and license processing, and everything else in between.
Other BIG Advantages Of Food Truck Rental
Everything’s Included In One Neat Package: Here’s the nice thing about food truck rental and leasing companies: your monthly payments get more than just a food truck. You get the necessary kitchen equipment, cooking and maintenance appliances, and sometimes, it even includes the permit and license processing!
Cash Flow Conservation & Flexible Terms: Without the need for investing $50,000 to $100,000, you free up A LOT of cash that you can use for new marketing and promotional campaigns, hire skilled staff, and buying MORE food supplies.
Lower Total Cost Of Ownership (TCO): Thanks to the Section 179 deduction, you can deduct the cost of the food truck within a single tax year instead of paying bit by bit overtime, which can cost you MORE eventually.