Food trucks have becomes immensely popular over the last few years. Moreover, more and more events are being run which provide great business opportunities for Food trucks. However, getting started can seem like a difficult task.
Here’s a run-down of the things to be aware of when starting a food truck business.
The biggest hurdle is going to be the legal aspect. As a food truck, there are guidelines and laws which you must follow. A reference guide is available to provide you with an overview. The two main pieces of law you will need to be aware of is the Food Act 2003 (NSW) and the Food Standards Code. These cover practices like safe food handling, sanitation and the fitting out of the food truck. Some of the practical things to be aware of in the guide include: appointing a certified food safety supervisor and notifying the local council.
Finance for a food truck
The next thing to consider before opening is how you will pay for everything. This is called raising capital. Depending on where you purchase your cooking equipment and van, the same company might provide equipment finance and lines of credit. Make sure that you don’t get ahead of yourself and get too far into debt. It is critical that you have a manageable level of debt.
Closely related is the failsafe of insurance. Your business is the food truck. If someone stole the truck or damaged it, then you may be left with no source of income. Based on where you are and operate, you may find it best to get an insurance package. Therefore, if you do decide to purchase insurance, make sure it covers the situations most relevant to your business.
Location is everything. There are growing opportunities for food trucks each year. As a food truck, you could mix and match or make a home base. Some examples of places to serve include breweries, markets, festivals and concerts. A lot of breweries due to license restrictions can’t actually serve food themselves. This leaves food trucks with the market opportunity to serve food right outside provided they have a contract with the brewery. Nighttime markets also have spots for food trucks as do music festivals. The factors you should weigh up in deciding where to serve include your target demographic, cost, and ease. Travelling 3 hours to a location may not be worth it for you. Likewise, expensive contracts may make you lose money instead of earning any profit.
You may need to hire part-time employees or casuals to serve in your food truck. When starting out, you may find you can operate the business all by yourself. If you employ casuals just be aware that they can legally not turn up to work (without providing notice) as they aren’t on a part/ full-time contract.
Don’t know where to start? Contact a LawPath consultant on 1800529728 to learn more about customising legal documents and obtaining a fixed-fee quote from Australia’s largest legal marketplace.