A food truck business can be quite lucrative. In fact, it is often a much better idea than starting a fully-fledged restaurant since the costs are far lower so there can be more of a profit margin.
There are a lot of other benefits as well, but the one that concerns most operators is the cost.
The profit margins also depend on how well you manage your expenses and run the numbers side of the business. There are almost always areas that can be improved to make those numbers work more in your favour. The most obvious place to start is by reducing operating expenses.
In this article, we will go over a few tips so you can start reducing your costs and make more money right away.
Get the right insurance
Insurance can take up quite a bit of the profit of a food truck. Not only do you need liability insurance in case anybody was to get sick from your food, but you also need to have the van insured since it is driven around. You may already have insurance but you can shop around and get a van insurance quote to see if there is a lower price out there for what you need.
There are also some items on your policy that you may be paying for that could prove to be unnecessary. Take some time to review what your coverage is and eliminate some of the superfluous comprehensive items that are not relevant to your situation. This can save hundreds per year.
Streamline the menu
Something many restaurants and food trucks alike struggle with is a menu that is too large and unwieldy. In just about any restaurant and food truck, having a smaller and more manageable menu is the key to better profits by lowering food costs. There is far less food waste and many ingredients can be used across many dishes.
Take some time to also look for low-cost ingredients that can be stretched to save money across the entire menu. People only care how good the food is and not how much the ingredients cost.
Streamlining the menu will help you manage inventory but whether you have followed through or not it should be a constant thread to follow during the course of your business. Throwing food away is almost always caused by not maintaining a solid inventory ritual.
Knowing what you have on hand and when things expire is essential. Keep a spreadsheet of incoming produce to know when you have to have things used up to avoid this problem.
It’s definitely nice to have a preferred purveyor that you use but business is business. You can only be loyal to a purveyor if they have the price that will help you maintain a healthy bottom line.
Shop around to see if you can get better prices on your produce occasionally. Look for prices that are stable, however, and not likely to go up after your probationary period s a client.