Friday, December 17, 2010

5 Things to Know Before You Start Your Mobile Food Business

The mobile food business is booming. Not a day goes by without hearing about another success story. Kogi BBQ, Coolhaus, and the Grilled Cheese Truck, are all part of this great success story emerging from our recession.

In fact, one would ask – why wouldn’t you want to do this – you pick your location on an hour by hour basis, no landlords to deal with, hours are whatever suits you, and the cost structure is substantially lower than a bricks and mortar location. However, it really is not that simple, and a number of factors must be considered before embarking on this business.

Here are just a few:

1. Estimate your start up costs and decide if you can afford the initial investment in this business. The main things you need are a reliable vehicle, licenses and insurance. Inventory and personnel can be purchased day-by-day with profits.

2. Survey the competition to find out what concepts are already available in your area. Identify the gaps where your business could possibly profit. Look for ways to provide better or different food options, - differentiation is everything in this business and ‘Cool’ is in, so creating a burger truck may not be as successful as launching a mobile noodle truck.

3. Mundane things like insurance and health and safety still apply. In addition to the insurance for the vehicle you use, you must have insurance that protects you from lawsuits that customers could file. Your state may also require additional insurance. Don’t forget, your liability has actually expanded, as you are now a mobile vehicle, transporting food, therefore employee training in OSHA and general safety practices are of paramount importance.

4. Learn the basics of food safety and food preparation. Check your Department of Health, the library and the U.S. Food and Drug Administration for updated laws and restrictions that may apply. The same rules apply – food must be handled safely, therefore power management, wash up facilities and equipment maintenance is essential in this business.

5. A location strategy is required before you embark on the truck business. Ensure you know the area you plan to serve, and ensure that there is adequate parking facilities (that are legal), that meets with your location requirements. This business needs high traffic locations, therefore try to do deals with shopping centers, sports centers etc, who will allow you to use their parking facilities.

Robert Ancill is CEO of international restaurant and food consulting group, The Next Idea (www.thenextidea.net).

Robert was educated in Glasgow, United Kingdom. His career spans over 24 years in the Restaurant, Retail & Leisure Industries, with a solid background in international restaurant concept & brand development, restaurant/cafe operations, management,, launching new businesses, and managing change.

The Next Idea is one of the US’s most innovative restaurant consulting groups, with specialization in concept development, branding, product and menu development and differentiation. It works with clients across the globe including: USA, Dubai (UAE), China, UK, Europe and India.

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