When business is booming at your food truck, you may be tempted to open a brick-and-mortar storefront. After all, it’s hard not to see long lines and positive reactions to your latest menu items as an indication that you’re ready to take the leap. But do you know what goes into opening your own storefront?
Fortunately, you’ve come to the right place. Don’t start looking at properties yet. First, read this guide to learn what you should consider before moving from your food truck to a storefront.
Consider the Costs
According to the FDA, don’t let the excitement of opening up a storefront cloud you from the very real costs associated with doing so. Consider that you’ll need to make lease payments, and you may be responsible for utilities and property taxes. Some landlords may require a hefty deposit, ask you to chip in for repairs, and limit how you can alter the space.
Additionally, you’ll need to invest in marketing efforts to promote your new initiative. Software to manage costs, vendors, and payroll can add up, too. And if your storefront takes off, you’ll need to invest in new employees to support operations. Watch this video to learn more about the costs involved:
Plan on reserving some extra money to cover costs during the change, and understand that you might not be able to say goodbye to your food truck right away. You may need revenue from it to help cover transitional expenses for a few months.
Evaluate Kitchen Needs
While a food truck kitchen can feel cozy, you’ll have a lot more space at your disposal in a commercial kitchen. Since you’ll need to meet higher demands for production, you’ll also need to invest in equipment to populate that space.
Look at potential new kitchen spaces to determine where you could fit walk-in freezers, large fridges, and commercial-grade ovens. Look for spaces where you can store canned goods and equipment. And make sure the layout allows for prep tables and ventilation. Read our post on how to set up your restaurant kitchen for more useful tips.
You can potentially save money by investing in a space that’s already outfitted for kitchen work. If there’s a good oven and prep station, you’ll just need to fill in the rest of the space.
Depending on the kitchen, you may need to pare down or expand your food truck menu. When you’re just getting started in a storefront, the transition can be easier when you commit to a limited menu. Offer your best sellers from the food truck first so you’re not stretching yourself too thin with inventory.
Watch this video for some more pro tips:
Look at Funding Options
If you’ve been a diligent saver, you could finance your move to a storefront with existing savings. Other popular ways to supplement costs include traditional bank loans or a line of credit.
An equipment loan can provide financing to help cover initial costs for new ovens, mixers, or freezers. With a business line of credit, you’ll have ongoing funds available to help cover a variety of costs. You can draw what you need to cover things like inventory purchases or emergency costs.
With any option, understand the repayment requirements and how interest rates impact your bottom line. Know what other fees may be involved, and what would happen if you don’t have the income to make full payments in a given month.
Business owners should also compare how different lenders structure financing, including qualification requirements, available funding amounts, repayment terms, and the time from application to funding. Reviewing Crestmont Capital funding terms explained can help entrepreneurs understand what to expect from a direct business lender when evaluating financing for expansion costs, equipment, inventory, or working capital.
Ultimately, make sure you include any business funding in your financial forecasting. You may hit a slow stretch or need to fix an urgent plumbing problem. You want to be confident you have the cash flow to act rather than react.
Don’t Forget About Marketing
Your food truck may have had a loyal following, but a new storefront may not command the same initial interest. You’ll need to convert your food truck loyalists into regulars at your new restaurant. And you’ll need to extend your reach to generate enough revenue. Read this Reddit discussion for more useful tips.
Make sure you give ample warning on your socials about your move to a storefront. Promote it, provide the address, and entice existing customers with deals or freebies. Invite select customers to a soft opening where you can test your operations and generate buzz.
Invest in good signage for visibility from the street. Partner with other local businesses to help create awareness that you’re moving to the neighborhood. And advertise coupons or promotions to help bring in new business. Watch this video by Mike Bausch for more useful marketing tips for restaurant owners:
Prepare for Your Storefront Adventure
Shifting to a storefront from a food truck is a big step, and you want to be prepared. Understand lease terms and associated costs with your new space, and budget for big expenses, like cooking equipment and new hires. Take time to review your financial forecasts so you’re not caught off-guard as you transition to a new space.
With some preparation and funding in place, you can be ready to tackle your exciting new adventure in a restaurant storefront!
Further Reading: NYC Street Food Guides
- Jackson Heights Himalayan Street Food Guide — Momos, laphing, and the full Tibetan-Nepali-Bhutanese crawl along Roosevelt Avenue
- NYC Halal Cart Guide — The definitive breakdown of the city’s halal cart corridors, sauce science, and 20-cart vendor matrix
- NYC Street Taco Guide — Birria, al pastor, suadero, and the taco truck scene from Corona to Red Hook to Midtown
- NYC Chinatown Dumpling Guide — Soup dumplings, pan-fried pork, and the full xiao long bao vs. potsticker debate settled on Mosco Street
- Red Hook Food Vendors Guide — Pupusas, huaraches, tamales, and the masa continuum at the Red Hook Ball Fields
- NYC Empanadas & Arepas Guide — Colombian empanadas, Venezuelan arepas, and the full Jackson Heights street food crawl
- South Asian Street Food Styles NYC Guide — Chaat, pani puri, kati rolls, and the full South Asian street food landscape across Queens and the Bronx
