As a potential new owner of the most-talked-about food truck in town, does having to think about food truck profit margins seem a little more like taking (or retaking) a college accounting class and a little less like the food truck dreams you’ve had in your kitchen since you watched your first cooking show? Probably.
Does pondering how to calculate food truck business costs with all those numbers and formulas and spreadsheets – and did we mention the spreadsheets and formulas – feel a little less like the excitement of a community event and a little more like right after accounting class you have to go to finance class down the hall? Sorta.
Here’s the truth. As a new food truck business owner, or as someone who is contemplating becoming one, it’s imperative that you consider these types of financial questions before you become an owner. Not after.
Here’s some good news. There’s this business model called “franchising” that’s designed to remove some of the headaches that come along with opening your own food truck business. The franchise model is already in place and ready to educate you and develop your skill sets as a new business owner. No headaches, just ongoing knowledge and support to allow you to fulfill your dream. You’re after a food truck profit right?! Yes you are! And, more.
BACK TO THAT FOOD TRUCK PROFIT MARGIN THING
What in the world is profit margin? Believe it or not, some, in fact many aspiring entrepreneurs go into business having never considered the answer to that question. Instead they think, “It’s my goal just to make a profit, right?” Profit, the amount you have left over after you’ve paid your expenses (wow, that’s putting it simply) is good, but doesn’t necessarily ensure sustainability.
A healthy profit margin tells you if you’re earning enough return on your expenses to stay in business for a long time!
So, as you research whether or not the food truck business is profitable and what the average food truck profit and your food truck profit margin should be, you can assure the big brains at Masshole Lobster Truck have already thought about that. Lived it in fact. And, we’re ready to share that knowledge with you as a new franchise owner
A HEALTHY FOOD TRUCK PROFIT MARGIN STARTS ON DAY 1
When’s Day 1? It’s today. If you read this blog yesterday, then it was yesterday. Wait, what? Hey, we’re just trying to make sure you don’t fall asleep in class, because if you miss this now, then later won’t be nearly as fun.
Remember what we said earlier in the class – you want to learn these things before you start your business. Not after. Your mindset at this stage of the research game should be understanding the finances of the food truck business. Recipes and spices and such come later.
Is the food truck business profitable? It certainly can be! And, we believe that the franchise model is a winning recipe for starting and operating a business!
TWO MAIN WAYS TO WIDENING YOUR FOOD TRUCK PROFIT MARGIN
It may sound elementary, but two main ways of widening or increasing your food truck profit margin are to increase sales and decrease costs.
DECREASE COSTS OF YOUR FOOD TRUCK
Let’s start with decreasing costs first because you truly need to make expense-reduction a mindset and daily habit even before you own your own business.
Here’s a myth. You will save a ton of money by not purchasing a franchise, and just do it yourself. Just one question, but it’s a long question.
If you’ve never done it yourself, do you know what size truck to purchase and how many people to employ per hour or what equipment you should purchase and the cost of insurance and how much to budget for truck maintenance and fuel costs and how to streamline a menu?
It’s ok not to know these answers. But, the cost of moving forward and not knowing can be big. Food truck business costs are inevitable, but they can be managed.
Here’s more good news. Masshole Lobster Truck franchise can help you avoid the cost of not knowing. From our initial recommendations and guidance for the purchase of your truck to working with reliable seafood suppliers to keep the franchisee’s costs down, we’re committed to both controlling expenses at the franchisor level (that’s us) and training our franchise owners to do the same in their local markets.
POSITIVELY AFFECT YOUR FOOD TRUCK PROFIT MARGIN BY INCREASING SALES
Sales, sales, increasing sales! That’s the right answer, you can put your hand down now! Nice job class!
This is the fun part to think about, right? Because what food truck owner doesn’t want to increase sales?!!
Here’s a myth you may have heard before. You will save a ton of money by not purchasing a franchise, and just do it yourself. Just one more question, but it’s another long question.
If you’ve never done it yourself, do you know how to build the right kind of website and the content strategy to use on social media and when to be a paying sponsor of an event, and how to collect email addresses and send out regular emails with rich content?
And, do you know how to secure catering business and whether or not to also use a food delivery service and what percentage of your food truck profit will fund your marketing?
Here’s even more good news. Masshole Lobster Truck will train you on how to increase sales to positively affect your food truck profit margins through targeted marketing and by broadening your capabilities to secure catering business for weddings and other special events.
Our goal is to help you exceed the average food truck profit realized by those other trucks you’ll drive by each day as each of you set out to share your delicious food with the masses.
You can trust us, we’re all about delicious as well as the right amount of dripping butter on the perfect piece of bread supporting the most succulent bite of fresh lobster. Truly we are.
And, we commit to each and every Masshole Lobster Truck franchise owner to “be all about it” on their behalf through a process that maximizes their food truck profit margin in every way that we can. Is the food truck profitable? It most definitely should be!
Call us today to find out more about how we can help you build a sustainable food truck business!
Learn more: Let’s Get Cooking: Here is Your Path to Get Your Food Truck Business License