Mobile Food Business Startup 101: From Food Carts to Food Trucks

By Go EntrePinay 9:30:00 PM Entrepreneurship Startup

Most business startups have often been attracted to the essential food industry. From fish ball food carts, Burger Machine trailers, and up to Makati jollijeeps several decades ago, the mobile food business truly has evolved much to what it is today. Though without much media hype, the street-food industry is one that has long taken centerstage in Pinoy food culture and lifestyle. But now, the mobile food business has worn a more dynamic face to adapt to consumers’ changing needs with time. While food kiosks and food carts have already been popular in malls and train stations since the ‘90s and early 2000s, today however sees an emerging craze towards food truck business startups which began to spring up two to three years ago in the country.

Converging food trucks may now be found at fixed locations, and sometimes during specific hours in key commercial business centers like BGC, Cucina Andare in Glorietta Makati, Eat St. in Maginhawa Q.C., and Food Truck Park Ph in Capital Commons Ortigas. While the current set-up in the Philippines seemingly still leaves some room to fully embrace the mobile food truck concept in the US, present food truck players have definitely stirred the trend for more innovative food concepts in the mobile food business.

Mobile food vending for business startups

Meals on wheels from mobile food business
Photo courtesy of Coolhaus via Wikimedia Commons

If you’re one entrepreneuring mind, you’ll probably agree that the exciting mobile food business presents strong potential as the country progresses further with its growing economy. Meals-on-wheels will continue to be in demand as it tries to cater to a bigger populace of a busy, working class. But beyond easily accessible food, more smart consumers are on the search for unique food concepts that are reasonably priced and guaranteed safe. Can food truck business startups answer to that? Find out more about the mobile food industry and how it can keep up with the street-food lovers of today.

· Perks and Drawbacks

Doing mobile food business certainly brings unique advantages by operating small and mobile. First, you enjoy a much lower overhead due to minimal workspace within a food truck, trailer, cart or kiosk. You also get to reduce wage expenses since you’ll only require few helpers to prepare and sell the food. Unlike stand-alone restaurants, you also need not worry about searching for and getting fixated with your business location as you can park in and move from one location to another depending on how good business is at the site. With all these cost reducing factors, you’re able to offer more affordable price, quick service, and accessibility to customers.

Be prepared, however, for a much longer business day ahead of you. Before your food cart or truck hits the road for actual selling, you need to be up three to four hours earlier to do morning shopping for ingredients and food preparation work like slicing, etc. prior to cooking. As the day ends with no more food to sell or the last customer, you also have to clean shop to put the food truck in tip-top shape again for the next day. Add to this in between days some time you have to spend for online marketing, housekeeping with financials, and other admin paper works.

· Food Vending Business Startup Options

If you’re keen about the mobile food industry, you need to decide on what vehicle type to use for food vending. You may select from food kiosk, food cart/trailer, and food truck.

Food kiosks are your familiar food booths/stands that are found indoors at malls and theatre, selling anything from doughnuts to French fries. These are often detachable panels and can be assembled easily from one mall to the next when moving on locations.

Food carts and trailers are typically moved by car, van or truck, while the simplest type may be pushed by the vendor himself, such as the ice cream cart. Trailer types are usually with concessionaire arrangements and can be found commonly at carnivals, fun fairs, and open venues with spaces for unhitching and sitting for some time.

The food truck can be the most sophisticated among all types, offering the greatest mobility and providing the most space for equipment, food storage, handling and cooking procedures. There can also be gourmet food trucks which take food servicing to a higher level with specialty- or themed-offerings conceptualized and prepared by young culinary chefs. A mobile food truck may somewhat overlap with a mobile food catering truck, which is essentially a food catering business on wheels, minus the dependence on an event venue or dining hall since food may be served from the food truck itself. Versus a mobile food truck, mobile food catering truck doesn’t suffer from excess inventory and competition since you’re hired to serve exclusively for a party event with a given, definite headcount.

· Location Possibilities

Parking location is one critical success factor for mobile food business startups. Consider parking laws, where and when to reach your target market, and competition. Be diligent in scouting for premiere parking locations and having back-up contingency plans even when you’ve settled at one prime spot already. Remember that the flow of the crowd may be affected by changes in local parking ordinances and seasonality anytime.

Best parking locations for food truck business may be found at tourist attractions, recreational parks, fair grounds, sports centres, and special events venues. Other places that also serve as crowd magnets include university belts, business districts, bus/train stations, and shopping hubs.

· How Much to Spend on Business Startup Costs?

Exact figures on start-up costs may be too difficult to determine as standardized operations in mobile food business is nearly impossible to achieve. Definitely, one food truck selling gourmet dishes will have different requirements from another food truck offering pre-packaged pizza, burgers, and fries. Hence, start-up costs will depend largely on the type and nature of mobile food business you plan to pursue. Whether you intend to sell your own cooked food or pre-packed food will determine the appropriate investment on vending vehicle, kitchen equipment, food serving utensils, licenses and permits, need for workers, fresh foods inventory, marketing, etc. The food cart or truck getting the biggest amount is one thing for sure though.

It may also help if you ask yourself whether to launch your business startup from scratch or to go with franchising. You may look up for food cart or truck contractors and try building up from there your total investment requirement. Meanwhile, there are franchising plans that offer complete start-up packages that serve ready to roll-out your business. For instance, there are food cart franchise plans from Php30,000 to Php75,000 for variety of food business like Chinese dim sum, rice toppings, burgers, shawarma, etc. You should be open to drawing up options and weighing in the costs and benefits of each.

· Your Kitchen Rules!

The street-food industry is like one big nut that is hard to crack. There can be so many food ideas to ponder with but nothing can be so definite as to what will click to the public in the long term. As always, it may be safe to follow that old business formula of doing what you’re good at. Try to bring to the crowd your own distinct kitchen flavour that you alone are good at so you may carve your niche out from competition.

When planning your menu in mobile food business, you may want to consider asking several questions. What foods do you know to cook well? Any specialty from your country or town? What foods are not yet carried by competition? What foods and ingredients aren’t easy to spoil when travelling? What foods can match meals-on-the-go lifestyle? What can be offered at affordable price street-meal wise?

· Go Legit.

Street-food sellers were always criticized as dirty and unsafe especially in the past. Hence, it’s by complying with full licensing and regulatory requirements, aside from upgrading the physical look and functionality of food carts and trucks, that mobile food players can appeal and expand their business to higher-end consumers. While business regulations may vary among cities, these may also differ between a food handler and non-handler. Food handler, such as when simply scooping an ice cream, may face more rigid requirements, versus those selling pre-packed food items.

· Master the Look for Your Mobile Food Business Startup.

Apart from unique food offering, equally critical is giving the right look to your food cart or truck. Remember, your food cart or truck can serve as your single, most valuable piece of advertising to market your food brand concept or theme. Hence, to capture mind share of new customers and existing market, your brand must be consistently communicated from your food truck down to the minute details like menu booklet, packaging, serving utensils, napkins, etc. Be creative and seamless with how you want your food truck to be remembered by the street-food loving public.

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