News

Food truck revenue expected to increase by 76% in next five years

September 29, 2014

The food truck segment began picking up steam around 2008, with many concepts abandoning more expensive brick-and-mortar bills during the Great Recession. According to the National League of Cities, there are no signs of this marketing slowing down – food truck revenue is expected to increase by 76 percent throughout the next five years.

NCR jumped into the food truck market with its NCR Silver POS system for small businesses. According to a news release from the company, food trucks are one of the fastest-growing segments for the platform.

NCR has come up with three tips for those jumping into the food truck space, including:

Know your regulations

Adjacent cities and counties can sometimes have different rules on safety, parking and more. Fees can also vary widely.

"Be sure to know each city's and county's rules first," said Justin Hotard, president of NCR Small Business. "Compliance can sometimes be so time-consuming that it may be best to dedicate one person full-time to handle licensing, permitting and other regulatory requirements during the initial few months."

Get creative with parking

To combat parking restrictions in certain communities, many food truck vendors are generating additional income by offering catering services.

The industry also is seeing an increase in free market options, such as "pods" in San Francisco, where trucks can park in public spaces and not worry about breaking local rules. Know the options in your market.

Build – and maintain – your brand

According to NCR, the most successful food trucks have unique brands, which include everything from the menu and logo to truck design. Given the mobile nature of food trucks, letting fans know where you're going each day is crucial. Social media is a prime vehicle for this, as well as overall customer engagement. Loyalty programs also help.

 "You need several ingredients to run a successful food truck – good service, amazing food and passion," Hotard said. "The element tying all of this together is your brand. Staying consistent with your brand and continually engaging customers increases your likelihood of long-term success."