Here is an interesting article on why food vending trailer businesses can fail – and tips to help you prevent failing!
The information has been summarised for this post – please follow the link below to the source of the article to read it in full.
Restaurant MBA – https://restaurantmba.com/why-food-trucks-fail/
“In many of America’s cities, food trucks can be found on almost every street corner. For each food truck out there, many more exist in the minds of creative food-lovers hoping to find their financial freedom while pursuing their passion. But why do food trucks fail sometimes?
People dream of opening food trucks for numerous reasons, among them a love of cooking, the flexibility and excitement of an ever-changing locale, the desire to share great food with the world, and the notion that a food truck is the ideal vessel to achieve all of this through.
Opening a food truck is much cheaper than opening a restaurant, and therefore a much more tangible goal for those wishing to serve their culinary works to their community. With a comparably low initial investment, people can see their financial freedom just a few years down the road. Once they break even and pay off any loans, as long as their food truck continues to make a profit, they will have gained financial freedom doing what they love.
However, achieving success in the food truck world is much more complex than is often perceived. Just like restaurants, food trucks have a very high rate of failure with 60% going under within three years of opening.
Various factors can contribute to food truck failure, but the main reason is likely oversimplification. People thinking with their hearts decide they can easily reach their goals by opening a food truck and overlook many important details. Dreamers believe simply offering amazing food and acquiring funds to buy a truck and cover overhead will pave the way to success.
Just because starting a food truck is less expensive than many small businesses doesn’t mean opening one is a guaranteed way to achieve financial freedom. Breaking into the food truck world requires extremely hard work, a solid financial plan, and patient, persistent pursuit.
Lack of Business and Financial Knowledge
Lack of Proper Understanding of Accounting
Lack of Management and People Skills
Lack of Brand Identity and Marketing
Lack of Stamina
Preparation Above All Else”