Auguste Escoffier, a highly renowned chef, once said, “The finest meals are the simplest. -Auguste Escoffier.” The food and beverage business is one of the most diverse areas of the hospitality industry. In addition, simplicity can tell apart by a variety of opportunities. An example of street food provided by moving vehicles is the “FOOD TRUCK”: a food truck agency.
Growing middle-class consumption of fast food, increased nutritional awareness, a mobile lifestyle, and the need for a ready-made meal have contributed to this model becoming increasingly popular among Indian consumers and investors alike, as evidenced by the rise in disposable income of the middle-class. It is predicted that this sector will have revenue growth at a pace of 3.7 percent over the next five years, which is a remarkable increase for an industry that has just recently been established.
It is increasingly becoming a more selected option than a traditional restaurant for new entrepreneurial activity because of the inexpensive initial investment and limited hazards associated. To learn more about why it becomes a popular option, here are some of its advantages and strengths that you will want to know.
It is regarded to be a low-investment high-profit food business concept since it requires the least amount of economic investment when compared to a traditional sit-down restaurant. This statement is one of the most significant and competitive advantages of operating a pizza food truck rather than a traditional type of restaurant.
Furthermore, renting a truck instead of purchasing one might help to reduce the capital expenditure required. In the next step, the selection of equipment and machinery necessary may be controlled by the purview of the menu, such as kitchen equipment including exhausts, grillers, heat lamps, and any other special equipment that your special meal may require.
Other advantages include avoiding investments in costly utilities, employing a diverse variety of employees, or paying taxes that would otherwise apply to traditional restaurants. This advantage reduces the amount of capital and operational expenditure required, allowing for more disposable income from the fund or earnings to be used for menu engineering and marketing initiatives.
In contrast, its working costs are monthly and limited in scope according to the need and range of operations, or they can be paid flexibly to manage the cost factor, and it does not require interruption of routine operations. Furthermore, maintenance and repair are easily manageable and even replaceable without a significant capital outlay.
Because of various factors, such as the use of disposable cutlery, the moveable structure makes it easier to maintain and clean. The setup is similar to a restaurant to provide better nutritional quality in food when compared to street food, and Food truck foods and services are perceived as more hygienic and a better option when compared to street food.
Compared to a traditional startup restaurant with a minimal risk element, this strategy is preferable from taking risks in business. Restaurants are constrained by their physical location, but food trucks are not restricted by location. Because it attracts many customers, the whereabouts of a food and beverage establishment is critical to its success. Its mobility aspect also serves as a marketing tool to help build the brand of one’s product while also providing operational flexibility, such as the ability to move from regular sales to becoming a secondary source at a more massive event or a specific portion of the menu, among other things.