How to Start a Food Truck
Food trucks aren’t going anywhere!
Consumers are still flocking to food trucks and so are investors. They’ve become an instagrammable status symbol in our online world. If you’ve got your eye on a colorful, innovative food truck, now is a great time!
But the food truck industry is heavily regulated so you’ll need to follow the law closely. Here’s what you need to know…
1. Start your company
If you’re operating a business without registering as an LLC or Corporation, you’re taking a big risk. Your personal assets can be taken to pay your business debts. That means you can lose your car, house, and bank account on a product injury, a bad business deal, or a freak accident. Is it likely? Probably not. Is it worth all that risk to save a few hundred bucks on registering? Definitely not. Register your company with the state and follow certain formalities, so only your company assets are at risk.
This is so important for food trucks because you never know how your menu items will react to customers allergy or nutrition needs. If someone develops a reaction to your food or is injured by your truck, you can be sued for damages.
Youʼll start by completing the state paperwork to register your entity. First, you'll need to decide what kind of entity is the best fit for you. If you haven't decided yet, check out our guides to Sole Proprietorship, Partnerships, LLCs, C Corporations, and S Corporations.
Now you're ready to register. If you are registering an LLC, the form is usually called Articles of Organization. If youʼre forming a Corporation, the form is called Articles of Incorporation. You can find these on your stateʼs corporation agency website. Youʼll also need to choose a registered agent, principal place of business, and business purpose. Keep in mind that all of this information, including your address, will be public.
You’ll also need to check out permits for food trucks, pass food inspections, receive food handlers certificates, and register for sales taxes.
Tip: Call in your business attorney if you need help navigating this step.
2. Lock down your brand
A trademark allows you to own your brand. It means you're the only company who can use your company name, logo, slogan, domain name, personal name, product name, or hashtags. Here's why it's key: without it, you can be sued, forced to rebrand, or have your customers stolen by copycats.
Trademarks give you the exclusive rights to use the name nationally. So if someone else registers your trademark, they’ll own the rights to your name nationally. You'll only be able to use it in your geographic region (typically your city). That's not ideal!
Think about how many brand pieces feature your company name: your website, social media, business cards, products, marketing materials, press links, inventory, etc. If you want to operate nationally, you'll need to change all of that + pull back all inventory with the brand on it, or possibly pay monetary damages. You'll lose customers, money, and valuable momentum.
Bottom line: if you’re building a brand, you need to own your trademark.
3. Create your menu
If you’ve read our popular blog post, How to Start a Business, you have a plan for what you’ll sell. Let’s take it a step further. Ask yourself:
What menu items will you include?
What supplies or ingredients do you need?
How much does it cost to make the items?
Where will you buy the supplies?
At what price will you buy the supplies?
At what price will you sell the menu items?
Make sure the numbers add up before you commit to your products and supply system.
4. Find a truck
You need a great truck. There are many websites where you can find new and used trucks, like Craigslist and Food Truck Empire.
Visit the truck first to make sure it’s in good condition and has everything you need. Check out the equipment that’s provided and the utility hookups.
Once you contact the seller and visit the truck, it's time to buy or lease your truck. It's so important to negotiate your food truck purchase or lease and make sure you’ve included everything about the agreement in writing.
Lastly, you’ll want to consider a custom wrap to display your branding.
5. Hire employees
Hiring employees is one of the most confusing parts of running a business. There are serious local, state, and federal laws about being an employer. There are payroll responsibilities and employer taxes. And then there are employment contracts. You'll want to have all the legal paperwork in order so your employees can do their jobs well.
If you're hiring independent contractors, you'll need to have a contract in place that clarifies their contractor status, your intellectual property rights, and their tax responsibilities.
6. Promote your truck
There are so many ways you can market your brand. You can use instagram, Facebook, Snapchat, Twitter, YouTube, email newsletters, and influencers to promote your brand online. Find out where your customers are online and join them!
You can also check out tradeshows and trade organizations for restaurants like Expo West or Roam.