Where do you go when you want to have a quick bite to eat? Food trucks are more and more seen in the city scenery and many of them offer delicious street food at a reasonable price. A food truck business is not only for providing food at a festival or an event, they are lately often noticeable on popular streets and even nearby some business centers. And it’s is not only street food anymore either, many are focusing on providing healthy dishes, such as sushi, poke bowls, salads and smoothies as well.
In this article, we will give a brief overview of the benefits and disadvantages that come with managing a food truck and an overview of the necessary steps you need to make for starting a food truck.
Why are food truck businesses so popular all of a sudden?
When you are thinking about opening your own restaurant or other food business, the food truck might be the easiest and most cost-efficient way to start! With a food truck there are few fixed costs and also you don’t need many cooks nor waitresses – a few will do just fine. For a food truck manager, that is much easier than for a restaurant owner who has to have multiple waitresses working at all times.
Also, you don’t need a long menu, often short and concise menus work better when you are to start a food truck. Just put a few popular dishes on the menu and the food truck surely will be popular! The quality and variety of the food that is offered in a food truck have also improved. Not only fast food is being offered but truly tasty dishes, such as salads, that have the same quality as you would get in a restaurant or a café. The more unique the menu that you offer, the better chance of standing out of the crowd!
A global pandemic has increased the importance of the food delivery segment and many people continue to order in, as it is very convenient and time-saving. With the increasing delivery segment, you don’t have the need for an expensive brick-and-mortar restaurant anymore, offering delivery from the food truck can be part of your business.
Benefits of a food truck business
When compared to regular restaurants, a food truck business has many benefits.
Few fixed costs
Opening a food truck is less expensive than a restaurant for example. With a food truck business, you don’t need to rent a pricy space, decorate and furnish it. To start a food truck you will just have to buy or rent a suitable truck, fit out a small kitchen that is customized to help you cook the necessary dishes fast, and regarding food safety regulations.
Your food truck doesn’t have to offer a wide menu, a few signature dishes will do just fine. That in turn helps to keep the inventory manageable as well as get your budget under control.
Few people needed
When you are starting a food truck, you don’t need to hire many people, hence it helps to keep the costs to a minimum. You can start a food truck business with just a cook and one waitress who helps out with taking orders and payments.
Choose a suitable location
A good location is always the most important factor in every restaurant business. A food truck allows you to be exactly where your customers are. Location is very critical for the business as more people means a better chance of higher profits.
To set up your food truck in a certain location, you do need an agreement with the city government, but still, you have many good options. You may think that if one location doesn’t work, you can just move to a better location, but it is not so straightforward. It’s important to know that food trucks are not allowed to freely move around in Dubai. Your Food truck needs to be placed only at an agreed location.
The simple and short menu will do just fine
No one expects to have the same variety in a food truck as they would expect from a restaurant. For food trucks, a simple and short menu might even be a better option for your customers. The food is usually consumed on the go, so help your customers make a decision by providing a few items, that you know you will master every single time. If possible, pick a niche for your business that helps you stand apart from the rest.
So, what is needed to start a food truck business in Dubai?
Business plan
As with starting any business, creating a business plan is the first step to take if when starting a food truck. This helps you to get an understanding of what you need to do in order for your food truck to succeed.
The plan should include financial calculations, such as a cost estimate of how much you may be spending on the truck, kitchen implementation, necessary licenses, and other starting costs. It is also important to add to the document expected cash flow and profit predictions.
There are also branding aspects to consider as it will also affect the overall business. First of all, what type of food and drinks you want to offer and are the potential customers local office workers or tourists. This will also affect the location to choose for a food truck.
You want your food truck to be noticeable and inviting which means you need to get your truck a good design.
Food safety and business license
You have to apply for a business license that will allow you to legally start a business. And since your business is a food business, there is also a need to obtain a license that all food is stored and prepared safely. People expect to get the same quality of food as they would get at the restaurant.
For opening a food truck business in Dubai, you need to submit your business plan to the Dubai Economic Department (DED) and Dubai Municipality for approval to obtain a license for the business.
Set up for business
The final step is setting your truck up for business. This includes handling all necessary technological features like how you manage your inventory, take payments, analyze sales data, etc. For all this, point-of-sale (POS) software is recommended.
A cloud-based POS software allows to do all that is mentioned above and more!
Insert orders and take payments
The basic function of a POS system is inserting orders and taking payments but in an easy and fast way. The user interface should have a clear design and be easy to use, as food businesses tend to have rush hours at lunch or dinnertime, depending on your location.
Inventory management
Having a clear overview of your inventory is very important when managing a food truck business. If you integrate your POS with inventory management, you have an accurate, real-time overview of how many items there were, what is sold, and what is left. To make inventory management less time-consuming, you can set minimum limits for your stock and when they are reached, products can be ordered with few clicks only via online ordering.
Delivery POS integration
If your business plan includes offering food via food delivery partners, it is useful to integrate your POS with delivery companies. This way, when an order is made via a delivery partner, you get the information also on your POS system.
With the help of a delivery integration, you easily free yourself from those dozens of third-party delivery tablets and other devices. All this is needed is a point-of-sale system and all your orders from online service providers will be automatically transferred to your POS screen.
For example, CompuCash’s delivery POS integration includes the most popular food delivery companies in the UAE like Deliveroo, Talabat, Zomato, Carriage, and more.
Insights that help manage your business
One of the beneficial POS features for food truck owners is its analytical overview that can help you manage your business. With a POS system UAE, you get an overview of everything that has been ordered, at what time, how much stock is left, and how much time it takes for the customer to receive their delicious dinner after placing the order. Analyzing this kind of data is the key to making smarter business decisions in the future.
Conclusion
To start a food truck is a good way to enter the food business. As a food truck owner, you can get to experience how to manage a business, while keeping the fixed costs, menu and inventory, and staff to a minimum. A business must have a unique offering, and the food truck is not just for offering fast food. Your food truck can focus on healthy food or an ethnic menu that the customers will enjoy, provide smoothies and fresh juice, or open a taco and a tortilla truck if you want to.
The success of your business is based on making smart decisions. One of the best ways to get all necessary business insights is an easy-to-use POS software. A POS system offers basic features such as a place to keep cash, manage card transactions, insert orders. If you plan on offering drinks and food also via a delivery partner, your business will also benefit from a delivery POS integration.
From a POS system, you will get a detailed overview of sales, inventory, popular menu items, popular ordering times, the amount that are ordered via delivery partners, and more. This will ease the management decisions and help provide customer service that is as good as the dishes you make to your loyal customers!
Looking for a Delivery Integrated Point of Sale solution?
Ask our specialist Marc for more info +971 50 566 5278 or write [email protected]
