First of all, whatever you’re into – restaurant or food truck – know that there’s a bright future that awaits you. The food industry is ever growing and remains to be the biggest industry in the world. Why not? After all, everybody eats. If you live in the United States, food businesses are everywhere, from bus stops to airports, highway exits, malls, supermarkets, and in the streets, you name it! And it goes without saying that starting your own food business is truly a profitable opportunity.
But if you’re a newbie, putting up your very own food business can be a challenging task. There are just so many things to consider – the location, menu, target customers, marketing – the list goes on and on. Of course, you shouldn’t forget about the capital. While there is an option to open cash advance for business costs, you still have to be prepared to invest a significant amount of money to get your business going.
Also, a major decision you need to make is determining what kind of food business you want to launch.
Well, many entrepreneurs often choose between opening a restaurant or a food truck. Both of these have their pros and cons and choosing the right kind of food business for you depends on many things, including your personal preference and financial situation.
So, before you resort to a coin toss, here are some facts that you should know about opening a restaurant and a food truck.
Restaurant – Pros & Cons
As you already know, a restaurant is a full-scale business. Perhaps the biggest benefit of owning a restaurant is that you have the opportunity to grow big in a short span of time. The restaurant trade continues to grow as more and more people choose to eat out. Not only eat out but also have a unique culinary experience. Whether it’s sipping a cocktail and eating lobster while being surrounded by whales and other underwater creatures, eating sushi while wearing kimono in the streets of New York, or enjoying lunch prepared by top chefs in front of you – there will always be a huge demand for some great restaurant experience. If you are the creative type who loves exploring new ways to delight people through food, opening a restaurant could be for you. And even if you are a beginner, if you have the skills and background, you shouldn’t fear about going big. Restaurant management is something you can learn and master through classes and training.
However, a major setback that often leaves many entrepreneurs feeling discouraged to put up their own restaurant is the cost. If you’re into this kind of business, be prepared to invest anywhere from $100,000 to $300,000. The capital depends on many things, including space (rent), location improvement, food and beverage supplies, kitchen/cooking equipment, furniture, décor, employee compensation, and of course, marketing. There’s just too much at stake. So, if you really want to open a restaurant, you should make sure that everything is well-planned, from your concept to how you are going to operate your business.
Food Truck – Pros & Cons
The food truck business is an innovation from the traditional restaurant. Because of these food trucks, people can enjoy gourmet food (along with mouthwatering street food) in the park, near their workplace, at a fair, and literally everywhere. This concept also attracts many entrepreneurs because it’s a great way to showcase their product in a unique and least expensive way. Yes, you’re right. Perhaps the biggest advantage of owning a food truck vs. a restaurant is it requires less capital. You could launch your very own food truck for as low as $50,000. Basically, you won’t have to pay for the rent which is usually the biggest expense that restaurateurs deal with. You also have a smaller space (truck) which means you don’t have to bother purchasing furniture and commercial kitchenware. Just a few basic kitchen tools and good-quality cookware then you’re all set! Staffing is also minimal compared to a full-scale restaurant.
But of course, since you are running a smaller-scale food business, you don’t expect huge returns in a short span of time. A food truck business is very limited. You could only serve a few types of the dish and serve fewer people (as you won’t have enough space and resources to cater to them all). Let alone your small kitchen space. You should also have to keep up with the local laws and permit requirements. Check out this resource for more info about food handler certification.
If you’re short on funds but you have a unique food product to showcase to the world, and you love the idea of hopping from place to place, a food truck business can be perfect for you. It’s also a good option for entrepreneurs who are not confident enough with their business management skills, as well as for those who are still working on their brand or product.
That’s it! Restaurant or food truck – you’re about to explore a very exciting business adventure. But then again, you have to weigh the pros and cons and figure out which business model best suits your entrepreneurial goals, personality, risk-taking ability, and of course, your finances. Best of luck!