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Top Reasons Why You Should Never Invest In Opening A Food Truck Business, Traditional Restaurant Business, Nor Franchise Restaurant Business And The Advantages And Disadvantages Of Being A Food Truck Restaurateur

Top Reasons Why You Should Never Invest In Opening A Food Truck Business, Traditional Restaurant Business, Nor Franchise Restaurant Business And The Advantages And Disadvantages Of Being A Food Truck Restaurateur

          
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About the Book

This essay sheds light on the top reasons why you should never invest in opening a food truck business, traditional restaurant business, nor franchise restaurant business. Moreover, the advantages and disadvantages of being a food truck restaurateur, traditional restaurateur, and franchisee restaurateur are elucidated in this essay. Moreover, how to make the money in order to afford to buy your own food truck business is delineated in this essay. There are a myriad of reasons as to why you should never invest in opening food truck business which eminently deter prospective food truck business owners from ever considering the precarious prospect of investing in opening a food truck business. First and foremost, the start up costs to open a food truck business can be exorbitant. Buying a "food truck can cost anywhere from $30,000 to $100,000. Since most food truck owners do not have enough capital to buy a new vehicle, they instead opt for an old truck they can remodel. This can be a costly and time-consuming process" ("Pros and cons," 2019). Moreover, the food truck business owner will need to budget for future repairs and will be unable to operate their food truck business when their vehicle becomes inoperable. Unlike a traditional restaurant business, the food truck owner will not be "able to serve customers" ("Pros and cons," 2019) food nor generate sales revenue when the food truck is broken down and being repaired. In other words, the vehicle facet of the business can quickly become a liability, especially when the vehicle that was financed by debt financing becomes inoperable and needs to be costly vehicular repairs to be performed to operate once more. It can also be cumbersome for the prospective food truck business owner to secure the requisite start up funds to start his food truck business, especially if he has a low credit score. Second, another deterrent prospective food truck business owners should take into account before considering the prospect of investing in opening a food truck business is that they face hyper competition. In can be arduous to win over customers in a market oversaturated with food truck business competitors. In the city of "Portland, for example, there are 500 food trucks competing for customers" ("Pros and cons," 2019). It is therefore likely that not only will it be a struggle to win over customers and market share, but that the menu options you offer will not be truly unique relative to your competitors menu options. It is also possible that your competitors who may be operating on the same block as you sell very similar cultural foods as your food truck business. Third, another issue prospective food truck business owners face is the complication of having to follow stringent local zoning laws that can even preempt "them from parking in the same spot two days in a row and takes careful planning to stay compliant. Cities have local zoning restrictions, which designate commercial and non-commercial zones. Due to this, most food truck owners plan their schedule months in advance so that they can get permits to park in certain locations" ("Pros and cons," 2019). Food truck business owners must not only be eminently compliant with their city's parking restrictions, but also are mandated to pay hefty parking fees. The challenge lies is having to plan months in advance where to park and also not be able to retain your customer base if you are required to move parking locations. If you choose an undesirable parking spot due to the desirable parking locations being occupied by food truck competitors then it can cause you to forgo earning substantial revenue. Fourth, another deterrent prospective food truck business owners should not overlook is that they will be incessantly working in a small space with very little storage capacity. This can also create additional inventory management complications since they will need to restock their inventory far more frequently than traditional restaurants


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Product Details
  • ISBN-13: 9798617105225
  • Publisher: Independently Published
  • Publisher Imprint: Independently Published
  • Height: 254 mm
  • No of Pages: 84
  • Spine Width: 4 mm
  • Width: 203 mm
  • ISBN-10: 8617105224
  • Publisher Date: 23 Feb 2020
  • Binding: Paperback
  • Language: English
  • Returnable: N
  • Weight: 186 gr


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Top Reasons Why You Should Never Invest In Opening A Food Truck Business, Traditional Restaurant Business, Nor Franchise Restaurant Business And The Advantages And Disadvantages Of Being A Food Truck Restaurateur
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