Food Truck SWOT Analysis 2022
Do you plan for a SWOT assessment in your restaurant company? This is a smart idea! The method of identifying your strengths potential, weaknesses, opportunities, and risks (SWOT) can help you prepare to face the challenges of running a mobile food device.
The SWOT analysis provides more insight into what differentiates you from other local businesses and what you can do to fix the issues with the business.
While it’s not possible to predict every possibility of a downturn that might take place for a food truck company following this checklist will make you better prepared for what’s in store.
In today’s audio course I’ll teach you how to write a SWOT report as well as provide examples of the strengths and weaknesses of food truck companies.
This episode is provided by our fantastic sponsor who can assist in managing the payroll of the food truck or restaurant, Gusto.
If you’d like to download their SWOT Analysis template as either PDF or PowerPoint immediately and get it, just click on the link below.
Introduction To Food Truck Business
A food truck’s business includes food trucks that have an official license to place food items on the truck and serve customers as they move between locations.
You’ve probably seen some food trucks that are parked in front of shopping centers or office structures.
Food truck businesses are quite different from traditional establishments and hotels since it is required to go to specific areas at different times throughout the day along their route.
In addition, you don’t sit around waiting for your customers to arrive rather, you go directly to them. When you are serving or making food, it’s similar to other hotels.
According to research conducted by IBISWorld that there are around 23873 food trucks operating in the US and that it employs more than 28916 people by 2020. According to an estimation, food truck sales are increasing at 5.4 percent, compared to 4.3 percent.
In comparison to the year 2019, it has increased by around 20% in just one year. According to Forbes, the total revenue from food trucks in the year 2019 totaled 985 million US dollars.
Food Truck SWOT Analysis
As a group, including our business consultants paid by us, we’ve had the opportunity to look both inside and outward, to critically evaluate our business and personal ideas to determine if we’re really ready to start our food truck on wheels to Los Angeles.
There is no doubt that we have many factors that work in our favor however, there are some issues that need to be addressed should we want to be the leading company in the food trucks that are mobile throughout Los Angeles and the whole of North America.
Below is a summary of the SWOT analysis conducted for The On the Track(r) Mobile Food Company;
Strengths of Food Truck Business
The strengths of the food truck market include:
❤️ Experienced Staff: Experienced staff means skilled drivers and flexible cooks. As a mobile food service it is essential that the cook be able to cook food in a small, portable kitchen, but without sacrificing the taste and quality that the meals. The truck driver should know the routes and also know the various locations for public businesses that can help increase sales.
❤️ Brand Recognition: If you already own an establishment that is a hotel or eatery but your budget for the market is smaller, you can use a food truck to reach a wider audience and establish trust. Food trucks are an excellent opportunity to establish a name for your company and gain trust from people. It can be difficult for certain people to believe in any online brand However if they see the person in person and try your food. They may change their opinions regarding your brand.
❤️ Cheap Prices: The cost of the menus of food is quite high in high-end restaurants and hotels. In contrast food trucks, food trucks provide meals at an affordable cost to everyday workers who earn minimum wage. If you provide them with excellent service at an affordable cost, you are able to gain the attention of a large market share.
❤️ Fresh and Innovative Food: The food truck has no storage space for food. So they prepare and serve food simultaneously without allowing room for storage. The guests can try freshly prepared food. Since people won’t have time to sit for long periods of time to cook food, it is essential to think of new methods of cooking and presenting food in a short amount of time.
❤️ Location Flexibility: We all know it’s a food truck, one that moves with the ability to park wherever when it’s permitted. Certain restaurants and hotels near offices or in tourist areas depend on staff or tourists for their revenue. On weekends, or on holidays, they’re typically not in operation because customers aren’t present. However, food trucks are able to be mobile and move the business into crowded areas. Anywhere customers are, they can bring the food truck there.
❤️ Fast Service: Sometimes, you must schedule reservations prior to visiting it, particularly at expensive hotels. However, food trucks offer the freedom to roam around, purchase the food and enjoy it whenever you want.
❤️ Saves Renting Cost: Establishing a hotel or restaurant can be very expensive and rent can be expensive in places that are crowded. Food trucks save you from rents that are high. All you require is a permit once you have it, you can begin your journey from any place you’d like.
Weaknesses of Food Truck Business
A few of the flaws that the food trucks have in their industry include:
❤️ Limited Capital for a Food Truck: Food truck businesses are a great way to earn money. is more affordable than a restaurant or hotel. However, that doesn’t mean it’s a waste of money. Of course, you’ll need an adequate amount of money to purchase an automobile and pay other charges to satisfy the permits. The costs differ between countries and state to state.
❤️ Costly Food Ingredients: The essential food ingredients are getting more expensive, and food truck operators must provide meals at a lower cost so that they can stand out from their other competitors and draw those who are price conscious. If they do this the price would not even cover their costs.
❤️ Less Experience: If you’re brand new to the food truck industry then you’ll not have the experience to manage day-to-day problems. Since it’s a mobile food business, you will have to deal with everyone from wealth to poverty and from humble to rude. How to deal with them and still make a profit is a skill that will take time to master.
❤️ Lack of Information: There are certain aspects regarding the markets, the cooking style and technique within the food truck moving, and details about the routes and timings at various locations. There is no one who can provide such information and you must learn these things yourself by remaining on top of the market. Your competition has this advantage over you and they’ll continue to use this against you in the event that you do not be aware of it.
Opportunities for Food Truck Business
The opportunities that are for food trucks are as follows:
❤️ Emerging Business: Food trucks fall into the category of new businesses that are only just emerging. The market is competitive but it’s not crowded with competitors. There’s plenty of space available for newcomers to take advantage of. If they offer a high-quality service and deliver on their promises they will be able to grab the majority of market shares.
❤️ Partnering With Local Bars and Clubs: Local bars and clubs serve only alcohol. If you sign agreements with them, you can serve a meal in the evening or by staying on standby in front of the club. This can be a great way for bars and clubs to broaden their menus and attract new customers. If you’re able to present the offer well you’re very likely to get they will take the offer and join you.
❤️ New Product and Taste: In the end, it all boils down to quality as well as its flavor. If you’re able and have the ability to test fresh ideas, then you can introduce different flavors and tastes to your meals. If people like your food then you will get a share of the market as long as you keep providing excellent service.
❤️ Mobile App & Website: As we’re in the technological age and the internet, having a website for your business and offering an app for mobile for your customers is beneficial. But, it will benefit you if you decide to open your restaurant or begin a delivery service on weekends. If your food is great the customers will write glowing reviews and you will attract new customers.
❤️ Bigger Market: The food industry is large and everyone has to eat for their lives. In this day of technology and capitalism, the majority of people are busy with their work and don’t have enough time to go out to restaurants unless they are wealthy people. The consumer for food truckers is the majority of everyday workers. If you can provide them with high-quality service at a cheap cost and they are willing to purchase meals from you on a daily basis.
❤️ COVID-19: The lockdown caused by the Coronavirus (COVID-19) provides an opportunity for food truckers. Because people are in their homes, and all restaurants and hotels are closed. Food trucks can be described as a delivery service. They are able to provide food for people in their own homes
Threats to Food Truck Business
The threats the food truck industry faces are the following:
❤️ Legal Requirement: Certain states and countries don’t permit food trucks to operate quickly. Actually, the legal requirements for food trucks aren’t easy to follow and differ between states. The act of moving around in a food truck, and offering food to all without having authorization could lead to serious legal action against the state government. It is therefore essential to get a permit before making any moves.
❤️ Simple to copy: There aren’t any copyrights in play. The competition could enter the market, copy your recipe and then offer the same product with the same taste but with a different name. The competitor will be able to take over your market share and you’ll be unable to take action.
❤️ Hygiene Conscious People: Certain people are extremely concerned about hygiene and you need to be extremely careful with the cleanliness of your food items and your vehicle. If they find anything unhygienic it will irritate the minds of other people and could cause a loss to your business. The better you’re hygienic in relation to clothing, food, and your vehicle the more customers you’ll attract.
The Final Word
Remember that there are both internal and external dangers to your company. External threats are those that which you have the most control over.
An example is to make sure that your food truck is maintained regular basis, by making oil adjustments. This small step will ensure that there are no mechanical problems in the future.
External threats are difficult to recognize and anticipate. For instance, in some markets, food trucks were forced to close temporarily because of national lockdowns and restrictions imposed by the government.
In addition, nearly all of the festivals and fairs in which food truck vendors earn the majority of their profits were postponed or canceled. This is an instance of an external force that can stop a business from advancing.
If you’re thinking of starting your own mobile food truck, don’t forget to download our Food Truck Business Kit.
This free tool provides you with immediate accessibility to our comprehensive 20-page business proposal as well as a cost-analysis spreadsheet.