Category: Entrepreneur

Common Mistakes When Starting a Food Trailer

Common Mistakes When Starting a Food Trailer (& How to Avoid Them)

Starting your own food truck business is an exciting time for entrepreneurs looking to get on the road
with a profitable (and fun!) business.

As with any business venture, planning and execution is everything- and whether it’s your first time
getting behind the wheel or you are a seasoned vet, there are plenty of mistakes that can be made.

Hindsight can just be….one of those things, but there’s some pretty common mistakes we see food
trailer hopefuls fall to.

Not Creating a Business Plan

You can come up with the best ideas in the world, but without proper planning- they end up lost in
space.

Creating a business plan is a standard common practice for business start ups, but is often overlooked when starting up with a food truck or trailer.

But why?

Justin, CMK sales rep shares: I think people may be under the impression that because food trailers seem relatively small and simple, and because there’s such high demand for them, that it’s easy to pull off, you know?…….. Build a menu, show up and let the food talk. But there’s more to it than that.

You need to treat your food trailer business the same as you would a brick and mortar joint. Business
plans help you determine a clear and measurable plan of action for everything from permits and licenses
to social media strategies.
(Don’t worry, we’ve built a guide to creating a business plan specific to your next food trailer.)

Lacking Social Media

We all know the power of social media, but many businesses are too slow to get their name out there.

There’s very few businesses that don’t really benefit from social media, and trust us- food trucks and trailers are not one of them.

Your target market is hyped on convenience, innovation and visual stimulation. Social media fits right in there, bringing awareness to your brand on a platform that almost everybody uses.

Engaging in a sound social media strategy will have your business spreading like wildfire, and you likely don’t need paid ads to do it. Exciting content, well done photos, contests etc. will grow your business organically.

Brand awareness aside, social media is a perfect way to communicate with your customers. It lets them know where you are, what you’re doing- and that you’re still here.

Your Food Trailer Doesn’t Fit Your Needs

You should really have a concrete vision before you select your food trailer.

Your vision dictates what you need out of your trailer, and without having a solid idea of how you need your food truck to support you, you’ll likely select the wrong one.

Food trailers aren’t all the same, and they don’t have the same capabilities.

Which is totally cool.

Different businesses have different needs, and in the case of food trailers, it will be the design and appliances inside.

It can get especially challenging when buying used food trailers, since you have very little say in the customization of them. The debate between buying a new trailer or opting for used is prominent in the industry. The flexibility of building a new trailer could save you a lot of time and money by designing it
for your needs from the get-go.

When selecting a trailer- whether its new or used- make sure you actively consult your vision and
business requirements.

Too Complex of a Menu

You can do some awesome things with food trailers, and get some crazy menus out there.

But you still have to understand the limitations of a food trailer.

Size being an important one, but also he functionalities- at the end of the day, a food trailer is not a brick and mortar location, and likely cant support sous-vide eggs.

(If you don’t know what they are, read up and rush out for them- like now.)

You can create fresh, exciting and plentiful menus- don’t get us wrong, but trying to get too fancy and too extensive will overload your food trailer (and staff).

Plus, fancy fancy food isn’t what your target market is looking for at that point in time. They sure aren’t looking for a hot dog in a stale bun, but fresh quick food on-the-go?

Yep!

Neglecting The Outside of Your Trailer

People are drawn to visual elements.

You could have the best burger on the block, but if the outside of your food trailer doesn’t appeal to customers-

Well, you won’t have a line up.

The design and branding of both the inside and outside of your food trailer is crucial.

It communicates to visitors what you’re all about, and the quality of your food. It encourages visitors to share and promote the beautiful design of your food trailer. It keeps people enticed.

First impression is key- and as much as we hate to admit it, looks are everyone’s first go-to.

Plus, have some fun with it! Designing the outside of your food can be fun and exciting.

15Jun

Creating a Business Plan for Your Food Trailer

by CMK

Categories: Entrepreneur

Creating a Business Plan for Your Food Trailer (Step By Step)

So- you’ve found your dream food trailer, and decked it out just the way you want it.

You’ve designed your menu, full of delicious spicy tacos and fresh guacamole. (Okay- that was lunch, and it’s still on our mind, but you know what we mean.)

You’ve even selected a round of locations, set your business hours and got a head start on your licensing and permits.

What on earth are you waiting for, right?

What’s missing in the above mix is a solid, well executed business plan that could quite literally mean the difference between sinking or swimming within your first few months of business.

An often-overlooked step, a business plan helps you determine things like:

Projected income, profit & fixed costs
A good estimate of start up costs and how much you may need to invest or finance
Your online and offline marketing strategy
Your target market, your target customer and the percentage of the market you are likely to reach
A competitive analysis, both internal and external
Your competitive landscape
Potential business related obstacles that may surface, and methods to combat
Potential business opportunities, how to plan for them and how to potentially take advantage of them
Strategic potential partnerships, customer relationship management and hiring processes

Your business plan is a blueprint for your food trailer. Without a concrete vision and strategic planning behind your food trailer, you may struggle to get it successfully rolling.

Building a Building Plan Specific to a Food Trailer

Business plans are generally comprised of the same components, but each plan has to be tailored to both the market and industry you are thinking about entering.

Creating a business plan for food trailers and the mobile food industry requires specific considerations.

And yes, of course- we have you covered.

Components of an Awesome Business Plan for the Mobile Food Industry

Executive Summary

Okay, okay- executive summaries are pretty cookie cutter. Granted, not that fun to write either but it must be done.

Keep it short, but sweet. Sum up what the reader is about to digest in much more detail and set the tone so that readers are open and willing to listen.

Business Description

In sufficient detail, outline the purpose and value proposition of your business.

The aim of this section of the business plan is to quickly and effectively communicate to both your internal team and future investors what your business embodies.

A sound business description will cover the 5 W’s- (flashback to school days, anyone?). Who are you, and what is the name of your food trailer? What is your menu offering and product offering? Any services at all? What are your goals for your business? Where are you going to be? Where will you be going? Why is this business worth getting off the ground?

Consider the following when writing your business description:

What’s the name of your food trailer business?
What is your mission and value statement?
Who is your target customer?
What is your offering? Are you operating as a completely mobile kitchen, or are you planning on remaining more stationary in a strategic spot?
Are you focusing on lunch time crowds, or are you using the food trailer as a catering option for executive gatherings?
What is your cuisine? What kind of menu are you offering?
Will you be attending events, or stick to urban areas?
When are you planning on opening your food trailer to the public?
What are your competitive advantages?
What is your business structure- how do you plan to operate your food trailer? Will you be looking for a full team of staff, or run your trailer solo?

Industry Analysis

Time to get a little more analytical and numbers based.

Consider both past and current data about the mobile food industry, with a little emphasis on your own specific market. Investors will want to know your industry’s size, historical growth, projected outlook and number of notable competitors.

It’s your chance to talk about the world you are about to enter into, and demonstrate your understanding of such. Place emphasis on past, current and future trends of the mobile food industry that are relative to your business.

These 12 mobile food trends show just how quickly the mobile food industry is shifting.

For example, while food trucks dominated the mobile food market for a number of years, the number of food trailers and carts out on the streets has increased 300+% over the last four years.

Your industry analysis should explore the external factors that have a profound affect on your food trailer. Typically, most seasoned food trailer and truck owners find that government licenses and regulations are a big obstacle in initial and ongoing operations.

Highlight technology developments that will help your business thrive down the line. The number of apps and websites developed in the name of helping food trailers succeed has exploded, and will continue to with the growth of the technology sector.

Check out these five websites and five apps that drive business for food trailers and trucks like no other.

Look at the mobile food industry through four scopes- political, economic, social-demographic and technical- and paint a picture for investors to understand what you are entering into.

Explore the key financial measures of the mobile food industry; industry wide sales, sales volumes and sales channels. For example, food trailers and trucks brought in 1.5 billion last year across the US, with projected growth trend of 12.4%. There are 4130 food trailers in the US alone, with each trailer generating around $200,000 in gross revenue.

Those are the kind of numbers and figures that should be intertwined through your industry analysis.

Competitive Analysis

Yes, somewhat self explanatory- but crucial.

Explore the mobile food industry’s main players, and your competitors. Who are your local competitors? If you’re a travelling act, who currently dominates the areas you’d like to focus on?

Highlight your competitors strengths and weaknesses. For example, vegetarian and vegan food trailers and trucks are absolutely slaying the market place.

More seasoned veterans have great supply chain networks, resulting in pricing that may be unattainable to a new kid on the block.

Perhaps competitors in your area operate on restricted hours, or don’t have a liquor license.

What is the competitive outlook for the industry? Explore barriers to entry, the number of food trucks expected to enter the market next year- ( hint: annual growth is 7.4% for food trailers.)

Market Analysis

This is your chance to explore and describe the very market that is going to be lining up outside your food truck.

The demographics of your target market are crucial to understand, to market your food truck and make serious profit. What do your customers like, what are their needs- where are they from, what do they have in common? Will they provide you enough of an opportunity?

A food trailer serving health conscious vegan food will certainly appeal to a different demographic than a food trailer pumping out cheesy pizza and fresh pulled pork sliders. The way you market to them and operate your business totally depends on who they are- a succinct understanding of your business and menu will be able to dial in on your target demographic.

Management & Hiring

What does your team look like?

Many first time food trailer owners opt to run solo for the first few months of operation, or until profit has turned.

For some, this may not be possible and you may plan to train an entire team from day one.

Be sure to cover how your plans for hiring affect the operations of your food trailer and how much it will cost you on a monthly basis to employ. Highlight the skills and knowledge of your existing team, and what will you be looking for in future team members to ensure perfect execution of your vision.

A food trailer offering coffee & donuts will certainly require different cooking and customer service skills than a full fledged seafood mobile kitchen. Your hiring needs will differ, so make sure these are clear.

Operations Plan

Quite simply, craft a succinct plan of exactly how your food trailer is going to work. Focus on daily business activities and strategies to support them.

Calculate your break even point, your profit margins, your supply chain, your manufacturers etc- everything that will be a part of operating your food truck, cover here.

Investors want to see concrete and sound plans for the operations of the business they are throwing money at. Investors will want to see a concrete understanding of where you’re getting your food from, the prices and how it will end up as a money making venture.

It can be a very data driven section, so using charts, graphs and tables is a great way to show processes and calculations without drowning the reader in thousands of words.

Food Trailer Marketing Plan

Marketing within the mobile food industry is quite different from marketing other industries, so forming a specific and measurable marketing plan for your food trailer is imperative.

You are quite literally demonstrating how you are going to make money- how you are going to have customers lined up outside your food trailer.

A full marketing strategy embodies many components. Consider the 4 P’s- product, price, promotion and place.

Product:

Brand name
Related products and services- are you offering just one menu, liquor etc.?
Functionality
How will your food be served and packaged?
Food Quality
Menu offering

Promotion:

Advertising
Marketing Budgets
Promotional Strategy
PR & Sales
Event calendar & attendance

Price:

Pricing strategies
Flexibility on pricing
Retail Price vs. wholesale pricing vs. seasonal pricing
Price competitiveness
Cost of supplies vs. retail cost

Place:

Supply chain(s)
Distribution channel(s)
Distribution center(s)
Logistics
Ordering and ordering processes
Transportation
Warehousing needs or manufacturing needs

Financial Plan

Down to the nitty gritty; the numbers.

Your financial plan speaks to the current and future financial projections of your food trailer.

Starting from the amount of capital you need to raise, how the money will be used and how much money will need to be interjected into the food trailer over time.

For example, you may only start by offering pasta dishes out of your food trailer on the streets of New York (lower initial capital) but you may plan to expand to offer pizza in the near future- the cost of a pizza oven would need investment at that time.

Provide income statements, balance sheets, cash flow statements and projected sales/revenue. Use strong evidence and expert opinions to accurately assume future growth or the internal components of your business.

Remain transparent throughout your financial plan.

2Jun

Marketing for Food Trucks 101: 5 Tips

by CMK

Categories: Entrepreneur

Marketing for Food Trucks 101: 5 Tips We’ve Found to Work

Whether you’re considering entering the mobile food industry, or you’ve recently made your first food trailer purchase- congrats! You’re looking at a multi-million-dollar industry that has provided millions of entrepreneurs a profitable, long term career.

As with any venture, your marketing plan is essential – (as is your business plan, which we have covered right here for you.)

At the end of the day, food trailers and trucks require the same marketing as a brick and mortar joint. We see a very common misconception here all the time; business owners assume that as long as they roll up to a busy place with a decent food truck, the money will roll in.

People are always hungry, right? True- but it doesn’t guarantee you sales. You need a concrete business plan and a creative, well thought out marketing plan to really get your food trailer thriving.

What a Marketing Plan Will Do For Your Food Trailer Business

Just like your business plan, a marketing plan provides you with a succinct overview of how you’re going to place your business in the market and how.

For food trailers and trucks, a marketing plan helps to:

Create measurable goals
Motivate your business team
Create a timeline of marketing activities
Calculate ROI, break even points and other important numerical analysis
Form a succinct, defined SWOT analysis
Determine your advertising methods
Solidify your branding, messaging, tone etc.
Align marketing strategies with business goals
Accurately define your market, segmentation, target customer and demographics
Prioritize time and priorities
Assists you in spending money wisely, especially with advertising

Yeah- it’s pretty important that you create a marketing plan.

As we work with aspiring food trailer owners on a daily basis, we wanted to share some marketing tips from the pro’s.

5 Tips For Marketing a Killer Food Trailer Business

Build a Strong Social Media Base for Your Food Trailer

In today’s society, it may seem like a no brainer to actively engage in social media for any business. The reality is, however, social media engagement doesn’t work for every business.

For food trucks and trailers, social media is an absolute must.
Social media is one of the easiest ways to both build a following and communicate with that following.

That involves everything- your location, menu updates, events you’re attending, contests, giveaways etc. It’s the perfect moving ground for sharp & visually based content and forming a solid path of communication with your followers.

Utilize Facebook, Twitter, Instagram, Linked In and even Pintrest. Use the strengths of each platform to accelerate your business and brand within the mobile food world.

Another reason social media is so important? The mobile food industry is one built entirely off people on the go. And what do people do on the go?

They browse their smart phones.

They’re looking for new, fresh content. They want to know what’s going on behind the scenes. They want to see your menu and your team come to life, and they want to be driven to find you. They want to engage with brands, even from a distance. They want to share cool and exciting posts from their favorite brands and influencers.

The power of social media and networking is huge. A clear and defined social media strategy is one we consider pretty essential in your business mix.

Engage Your Food Trailer with Food Influencers

Influencers have a really powerful affect. They play a huge role in the purchasing decisions of their followers and heightening brand awareness.

People trust influencers- they trust their word and their reviews of businesses. Influencers end up being a confirmation that a business is worth checking out, or something is worth getting involved in.

Pro tip? Start small. Look at local influencers that have 4,000-9,000 followers in your area. You may not think this holds merit, but it really does. These influencers may not have millions of followers, but they d have a trusted and loyal following directly in your market segment.

This can prove actually more beneficial than reaching for a widespread influencer, were targeted ROI won’t be possible- and your message may be lost in the crowd.

Connect With Websites & Apps Created For Food Trailers

The disconnect between the online world and the mobile food industry was discovered pretty quickly.

Hungry patrons wanted to know which food trucks were in their area, or which were attending events they had planned. They wanted to see menu’s, pictures & stories behind food trailers near-by.

With that, hundreds of websites and apps were built to connect users to food trailers and trucks at the touch of a button.

Integration into these websites and apps is crucial. It increases your exposure, it increases your branding, it increases communication with new and existing customers.

No pun intended, but it puts you on the map. Quite literally.

Just like brick & mortar restaurants develop great relationships with apps like Yelp and Open Table, you should be looking to foster the same kind of relations with apps and websites made for your food trailer.

We hear about the best and the worst of these.

Want to skip the research, and connect with the top 5 apps and websites for food trailers? You’re welcome.

Your Food Trailer Needs Consistent Menu Redesigns

One of the worst things a food trailer owner can do is keep the same menu for months at a time.

The mobile food industry is busy, and consumers will easily forget about you if you bring nothing new to the table.

(We are a on a roll with puns today. Not intentional, we swear.)

Not only do menu redesigns help boost revenue, but they are a fantastic tool of communication with people to remind the of your brand and coax them into trying your new creations.

Don’t be alarmed. A menu redesign doesn’t necessarily entail redoing your whole menu. Rather, try incorporating seasonal ingredients into your dishes. Have a daily feature. Run a campaign of locally sourced ingredients, and make this clear in your marketing.

A brilliant idea we have recently heard? Highlight dishes inspired by your loyal customers. Let them design their experience.

Use Your Food Trailer to Display Your Online Handles

If people found you by chance, they’ll want to know how to connect with you.

They don’t want to put in the effort to find you, but they still want to find you.

(We know, we know.)

So, make your social media and online handles clear. Clearly display them on your food truck. Make sure they’re on your business cards. Got space on your takeout containers? Throw them on there.

18Mar

8 Tips for Success That Food Trailer Owners Swear By

by CMK

Categories: Entrepreneur

8 Tips for Success That Food Trailer Owners Swear By

Word out there is that hindsight isn’t that strongly liked. To be fair, if you’re looking in hindsight there’s a good chance you’re looking for when a venture took a particular turn.
One man’s mistake is another man’s treasure. Good, or bad, hindsight can put forth some wicked advice for aspiring business owners.
Whether you’re looking to enter the market or you’re already there, insight from successful food trailer owners could make the difference between making money right off the bat or not.
Because as simple as a food trailer may be in terms of getting a trailer and designing your business, there still are moving parts within the actual trailers themselves and the industry that might not spring to mind.
So, if we talked to some insanely successful mobile kitchen owners- what would they have to tell you?

#1- Get Your Paperwork in Order Sooner Rather than Later

The paperwork and permits for mobile kitchens are a little excessive, we admit. For some reason, governments- city, provincial, federal- aren’t sure how to simplify the paper trail for operating food trailers. Make sure you understand the process and every single form is filled out. Make sure you have all the permits required, and absolutely read up on your local guidelines for mobile kitchens, as they do differ from place to place. In fact, most food trailer and truck owners share that the preliminary paperwork is by far the most stressful part of operating a mobile kitchen and that it surprised them how intensive the process is. While the payback is worth it, it can seem overwhelming; if you try to do it in a hurry, you will almost certainly miss things. Don’t rush. Start your paperwork months before you plan to launch and place it as your first task of business.

#2- It’s a Business, Not a Cooking Hobby

Be prepared to invest your time and skills into building your business. Just because the trailers are small, doesn’t mean the business plan should be. No matter how good your product is, you have to remember to consider other elements of a successful business when planning what, where, when, why and how you’re going to operate your mobile kitchen. Do your homework about your market, stay on top of trends and foodie movements, have a robust event calendar. A food trailer is not something to just make a mean burger out of and park anywhere you feel like. It’s still a strategic investment- it’s a reinvention of fast food.

#3- Make Sure Your Market is Ready for a Food Truck

For as big as the industry is, there are still areas that haven’t adapted the idea of food trucks yet. You would assume that they would be small, rural towns and that the big cities consider food trucks a staple.
Not quite true.
Food trailers may be known by most people, but some areas have not yet opened up their culinary doors to a consistent stream of mobile kitchens. It really depends on the social culture of an area, their needs for convenience and speed, and the culinary palette of your market. Bigger cities don’t necessarily mean a robust palette and you may find yourself in a market that doesn’t actually know what they want from that kind of culinary offering.

#4- Trademark Your Name

A lot of new business owners miss this step for some reason- perhaps if you don’t envision your food trailer expanding nationally. However, the mobile kitchen industry is a more tight knit community and your food trucks success may go more viral than you anticipate.
Got a cool name? Someone might just swipe it from provinces away.

#5- Don’t Upset Your Fellow Food Truckers

Food trailer owners have found that a huge chunk of their success has relied on the cooperation of other mobile kitchens in your operating area. With the market being tighter than some, networking is crucial and can make the difference between a well oiled machine (no pun intended) and a struggle to do things well.

#6- The Beginning Is Hard, So Roll Up Your Sleeves

Successful mobile kitchen owners have seen aspiring entrepreneurs enter the market and very quickly phase out. A common trend among the industry’s drop outs?
The assumption that a food trailer is easy work.
The demand for food trailers is sky high, but it’s coupled with the demand for fresh, unique and on trend food. Executing your product offerings to align with your markets demand means you’re going to have to put in the work from the very get-go. A food trailer will never run itself, and it takes time to get your operations to a point where you can fully staff your kitchen.
And don’t assume there won’t be hiccups with doing that either. When you rely on other people, you’re always running the risk that the don’t execute to your standards. In light of business slipping, if your staff are underperforming, be prepared to get right back in the kitchen.

#7- Don’t Limit Yourself to One Spot or Just Events

Look into catering with food trailers (link to blog). The big bucks lie in using your food trailer several different ways. The functionalities, mobility and size of these beauties make it easy to determine several revenue streams to make your mobile kitchen as profitable as can be. If you leave it up to just events to make money, you won’t be utilizing a really great business tool- that you own.

#8- Make Sure You Have a Great Mechanic on Your Side

Your ability to execute business relies on that engine, right? Without your vehicle, your food trailer is immobile and can’t do much for your wallet. Having your truck fail is like having the POS system at a restaurant fail- it’s just something you can’t ignore. Foster a great relationship with a mechanic in every city you operate in- you might have to pay premium, but the first time missing an event with your trailer because you’re waiting on a mechanic will soon change your mind about forking out for quick vehicle repairs.