Food trucks as revenue generators - everything you need to know
The food truck trend has been on the rise for several years. The sector experienced strong growth especially in 2013 and 2014 and still today proves to be a popular place to go for snacks and street food of all kinds. For anyone who has always dreamed of opening their own mobile restaurant, food trucks seem to be a good way of getting started. In this article we tell you everything you need to know about food trucks and what it takes to set them up, as well as which regulations and permits you have to comply with in order to run the business.
In this article you will learn about:
What is a food truck?
A food truck is a mobile unit on wheels with a full kitchen where fresh food and drinks are prepared and sold. The following terms are also used for these rolling restaurants: “food truck”, “dining car”, “mobile kitchen” or “rolling restaurant”. The roots of food trucks trace back to the streets. Nowadays, you can hire a food truck to cater your event, be it a corporate party, wedding or even your own garden party.
They are also ideal for festivals and creative corporate events and business events. Most food trucks have a very creative motto. As with pop-up restaurants, food trucks have been increasingly offering “gourmet cuisine” over the past few years . But of course there are still more “down-to-earth” food trucks serving burgers, sandwiches or sausages from the grill.
Starting up a food truck
If you want to enter the food truck business as a gastronome, there are a few things to consider before starting. In addition to the legal regulations to be complied with and the permits you need to obtain from the relevant authorities, you must also draw up a business plan. This helps you to keep an overview of the situation and to have a solid foundation when applying for a bank loan. Three basic aspects are central to starting up a food truck:
Founder profile: As the founder of a food truck, it is important, as with any self-employed activity, to have sound business knowledge. Special start-up coaching or start-up seminars help to compensate for any deficits in this respect. A gastronomic education is not a mandatory requirement for starting a self-employed food truck. However, chef’s or further culinary training can be an advantage.
Create a business plan: The business plan is first and foremost your benchmark and secondly the key criterion upon which the granting of your restaurant licence or the approval of subsidies and loans is based. The content of your business plan also includes concrete financial and marketing planning. It is advisable as an operator, for example, to make your food truck menu available via a website and an app. You can also set up a quick daily advertising medium for respective location announcements via various social media channels even before launching the business. With food posts on channels like Facebook, Instagram or TikTok, you increase your reach and chances of higher food truck sales.
Plan your POS and bookkeeping: As a food truck owner, the tax office requires you to keep certain records of the food truck’s cash register. You must meet the requirements for proper recording of all income and expenditure in your day-to-day business.
The Cash Register Act has set clear requirements for users of a POS (e.g. iPad cash register). Furthermore, a strict separation of private and business finances is recommended when setting up a business.
Food truck permits and regulations
The first step is registering your business. The exercise of business is also tied to a specific location and must be registered with the locally competent district administrative authority. For a start, this means it is not at all possible to sell spontaneously at locations chosen freely: if you want to sell from different locations, you must obtain a permit for each individual location.
After you have received your trade license, the tax office will send you your tax number by post. You can only issue official invoices with this new tax number. After registering with the Trade Licensing Office, you will receive a message from the relevant Chamber of Commerce informing you that you are a member of the Chamber of Industry and Commerce.
You will need to visit different local offices, depending on the location. This mainly concerns the immission permit, the health certificate as well as instruction in accordance with § 43, an alcohol licence and permission to serve food and drink outdoors.
You should also check with the health department, insurance companies (e.g. professional liability insurers) and professional associations for guidelines. If your food truck is not located in a fixed place, you will need a so-called “Reisegewerbe” and a travelling trade permit.
Buying or renting a food truck
You can buy a street food truck (used or new), e.g. from a specialised dealer or via an online marketplace. Of course, you can also rent a food truck to get started so that you don’t have a large investment to make. If you are new to the business, you should pay particular attention to the price and the additional costs, because conversion and repairs can be expensive.
When buying, you should ask yourself the following questions:
Is there a power supply?
Where does the exhaust come out of the food truck?
Is there enough space inside for all employees?
Is the lighting good enough to work effectively?
Is the vehicle well equipped (e.g. a. Trailer)?
In addition to the vehicle costs, it also makes a difference whether you want to work with your food truck at different locations or have a fixed place in mind. In the latter case, you need a parking permit or a special use permit according to Section 16 of the Roads Act in order to be able to sell your food in public areas.
However, if you are looking to move from one location to another, e.g. street food markets, fairs or other events, you can hire a pitch directly from the organiser. Research major events and ask the organiser about conditions for a pitch.
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