Welcome Back!

Get ready to fire up your taste buds because this edition, we’re diving into the sizzling world of food trucks! With the warm weather upon us, these mobile culinary hotspots are gearing up to serve delicious dishes at festivals, outdoor events, and city streets across Canada. 

As an entrepreneur, when you hear “food truck” we know that dollar signs don’t fill your eyes… 🤑 typically the words, “small”, “no growth”, and even “money pit” might be running through your head. But it's 2024 and things are changing! Some of these food trucks are not just one-trick ponies; they can grow into multimillion-dollar franchises!

Don’t worry, we aren’t all talk, we’ll show you how this is possible. ⬇️

INDUSTRY BREAKDOWN

The Canadian Food Truck Industry: Rolling in Profits? 🚚

The food truck industry in Canada is on a hot streak, with thousands of trucks delivering diverse and innovative cuisines. From the vibrant streets of Vancouver to the bustling markets of Toronto, food trucks are redefining the culinary landscape, offering a flexible and exciting dining experience that adapts to the rhythms of urban life.

Industry Trends

The food truck industry is buzzing with trends that are driving its popularity. There are an estimated 72,233 mobile food service operators nationwide in early 2022. Today’s food trucks serve a wide range of cuisines, from gourmet tacos and artisanal ice cream to vegan dishes and ethnic fusion, catering to a broad spectrum of tastes and dietary preferences. This culinary diversity is a key factor attracting food lovers, offering them a taste of something new and exciting at every turn​.

The Finances

Financially, the food truck industry presents an attractive opportunity for entrepreneurs. Launching a food truck business generally costs between $50,000 and $250,000, making it a more affordable entry point compared to traditional restaurants​​. Food trucks can generate annual revenues ranging from $250,000 to $500,000, with some high-performing trucks exceeding these figures. Lower operational costs and the ability to move to high-traffic locations contribute to strong profit margins​​. This financial flexibility was particularly advantageous during the COVID-19 pandemic, as food trucks could adapt quickly to changing circumstances and continue serving customers even when traditional restaurants faced prolonged closures​.

Case Study: Tacofino 🌮

If you're from British Columbia, you know what Tacofino is. But if you aren't, it's a food truck from Tofino turned 14-location restaurant empire. Tacofino started as a single Baja-inspired food truck in a gravel parking lot in Tofino in 2009. Founded by Jason Sussman and Kaeli Robinsong, it quickly became a local favourite. Their knack for blending flavours and listening to the community's desires (like switching from a burger truck idea to tacos based on local preferences) fuelled their success.

Their raging success in Tofino, combined with a big break when they were featured on the Food Network's "Eat Street”, propelled their growth to lower Vancouver Island and onto the Mainland. Tacofino's journey from a humble food truck to a thriving restaurant chain showcases the potential for growth and innovation within the food truck industry. Their success story demonstrates how understanding your market, maintaining quality, and being open to change can turn a small venture into a culinary empire.

Buy or Bust?

So, is jumping into the food truck business worth it? 🚚 Let’s look at the big picture.

Food trucks offer a unique blend of low startup costs and high flexibility, making them an appealing choice for budding entrepreneurs. With initial investments ranging from $50,000 to $250,000, they're far more accessible than traditional brick-and-mortar restaurants​​. Annual revenues often hit between $250,000 and $500,000, with top performers exceeding these figures.

So, should you roll into the food truck industry? Absolutely buy! With its blend of flexibility, lower costs, and high revenue potential, the food truck industry is a tasty opportunity waiting to be served. 🌮📈

Check out these Food Truck Businesses for sale:

1. BBQ Babes Food Truck in Kingston, ON - $99,000

2. Award Winning Food Truck Business on Salt Spring Island, BC - $289,000

3. Established Cheese Steak Truck in Fresno, CA - $179,000

Interested in a particular industry? Reply to this email with the industry you are curious about and keep your eyes peeled in upcoming issues. 👀 

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Have an opportunity in hand? Test your offer assumptions and get your FREE lending assessment score to determine your likelihood of getting financing on your deal.

DEAL REVIEW

Legendary Food Truck Business

This week’s deal is a Top-Tier Mobile Food Service Provider on Vancouver Island, BC.

Deal Facts 🔥

Green Flags 🟢

• Strong Regional Reputation: With over 13 years of steady profitability and a loyal customer base, the business is well-regarded in the community, ensuring continued patronage and word-of-mouth referrals.

• Innovative and Sustainable Practices: The business thrives on innovation and sustainability, which appeals to modern consumers and enhances customer loyalty.

• Engaging Social Media Presence: The strong social media presence and bold branding effectively attract and retain customers, making marketing efforts more efficient and impactful.

• Proven Business Model: The combination of a food truck and a commissary kitchen has proven successful, offering flexibility and mobility to capture different market segments.

• Potential for Expansion: The established brand and strong operations provide a solid foundation for growth, offering opportunities for new owners to expand locations, menu offerings, or catering services.

Red Flags 🔴

• Dependence on Leased Property: The business relies on leased facilities (food truck and commissary kitchen), which can pose risks if lease terms change or are not renewed favourably.

• High Turnover of Employees: With only five full-time and one part-time employee, the business might face challenges with staffing, particularly if there is high turnover or difficulty finding skilled employees.

• Limited Owner Involvement: The current owners' lack of full-time commitment suggests that new owners may need to invest significant time and effort to realise the business's full potential.

• Seasonal Variability: As a mobile food service, the business may experience fluctuations in revenue depending on the season and local events, impacting cash flow consistency.

• Economic Sensitivity: The business might be affected by economic downturns, as consumers may cut back on discretionary spending, including dining out at food trucks.

Want to learn more about this deal? Reply to this email with a “send me more details” and we will connect you with the broker!

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TWEET HIGHLIGHT

Summers are BUSY! ☀️⛱️

Between countless stat holidays, your own vacation time, and working around everyone else’s vacation time, it is hard to get anything done. Have you tried implementing a “no meeting” day? It does not have to be weekly, but having dedicated days/times where your calendar is blocked off from meetings will ensure that you have some head-down working time.

GOOD READS

Recommended Resources 📚

Below is a list of articles, books, and other resource we recommend for buyers or operators of small businesses!

1. This is a bit of a technical read, but BizBuySell (one of the biggest listing sites in North America) released their insight report, which offers valuable data on current market trends, buyer and seller behaviour, and emerging opportunities. It's a must-read for anyone looking to stay ahead in the business buying landscape.

2. Sometimes you are looking for a business to be your career, where a price tag buys you a dream job. Other times, you are looking for a business that is ready to be flipped and then sold for a profit. 😁 But how do you know when a business is primed for a flip? Forbes has your answers.

3. It wouldn’t be a Mainstreet Memo edition if we didn’t have at least one cool success story, would it? This NFL pro built a business out of waste! 💩 Ps. while of course we share these stories to inspire you to pursue your dreams and see how great your potential is (that the main reason 🫶🏼), we also do it to show you that entrepreneurs are taking over the globe. You don’t have to have a lot of $$ in the bank to make a big impact!

THANK YOU

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See you next time!