Food Truck vs. Traditional Restaurant: Pros and Cons of Each Business Model

To decide on which food business to start a food truck or a restaurant, it is a tough choice but as you are already in this confusion, then it's more than just the obvious. Now there’s few factors to consider: money, people and location. But above everything, the customer choice and your personal interest are what are going to be the deal breaker in this decision.According to IBISWorld, the food truck industry revenue is estimated to be worth $2.4 billion in 2024 with a 10.3% annualised growth rate over the past five years..

In this blog, we will talk about these factors along with the pros and cons and the benefits of having either of them. At the end of this blog, you will be one step closer to your decision.

The food truck can be moved to different locations and expand their business, be it at festivals, popular tourist places, near schools or offices where there's a lot of crowds.

A food truck is easy to own compared to a restaurant. You need to be a good cook and have one or two helping hands if you want to run your food truck successfully. 

Food trucks have limited space and a vehicle to care for, and both have low maintenance costs. It's easy to own a food truck and keep it for a long time without too many additional costs to maintain it. 

Food trucks have limited menus, featuring easy-to-make dishes with simple ingredients. They don’t require a large menu, offering customers easy choices — often including creative fusion cuisine  and can still serve multiple dishes efficiently.

The menu can be built around a specific target audience. Like ice cream trucks for kids, fast food for students and office goers. Just like that, you can decide your menu as per your location and can change it accordingly.

Food trucks have limited space, it can be hard to work on if there is a lot of back and forth within the truck to prepare a dish. Only 2 or 3 people can manage it from the inside. This can be a drawback in the long run too if you ever want to expand the menu and have more people, it can limit the growth

As much as it is a business, it won't give you profit like one. Don't get it wrong, food trucks are a better earning source than a salary, but compared to restaurants or other self-start businesses food trucks have less income. And you always have to work to earn it, it won't be bringing the revenue without it, which can be exhausting and hard to manage continuously. 

A common setback in food trucks, it does not always provide a dining experience. The menu has a major impact on it, food trucks are better at serving food which can be enjoyed standing and walking. You have to choose your menu carefully or pick a location which has common sitting areas and parks. 

Restaurants earn well, even great, they are well-established business models and you can run them for generations. We all know the brand value a restaurant can create if people like its food than it stands the test of time. 

Restaurants are known for their cuisines and become famous among the people. It is easy to manage the restaurant menu with the best chefs.

People love creating memories, and food has always a role to play in it. Birthdays, anniversaries or weddings require people and food. Giving a great dining experience attracts customers easily. 

Over time, restaurants earn their name in the city for their food and service. This grows a restaurant rapidly, and now with social media, if people love your food, they are definitely going to leave a good review, and more people will want to try it.

A good restaurant always attracts customers and is easy to get their attention with tempting options and delicious food. A new restaurant with a modern theme and the right menu can do wonders.

Restaurants are huge investments and have long returns. The business model is the factor of the growth, and you need to have a lot of money saved too, because after opening a restaurant, other things (waiters, dining, kitchen equipment, vegetable vendors, etc.) may require the cost in the beginning.

Restaurants are high maintenance compared to food trucks. As mentioned above, they need additional financial assistance, and only after a restaurant is a success will it be managed easily, which can take some time.

Opening a restaurant comes with many risks, a risk of failure is there, global economic crises like COVID can make a huge impact, bad reviews, accidents, etc. It is surrounded with lots of risks, but with proper planning, it can be overcome.

Whether you are planning for a food truck or a restaurant, you need to consider some factors, as you already have a clue by now which will suit your current circumstances. Let's quickly review the factors before we touch the end of the blog.

• Cost – Based on your finances, pick either of them because both will do great in the long run.
  
  
• Location – If you want more than one place to cover, then a food truck is a good choice in the short run. A restaurant has to earn its name in one place before opening at another place. 
  
  
• Food speciality – The most delicious food wins; it can be either a restaurant or a food truck. Food attracts people the most. 
  
  
• Potential – It is the main factor apart from your interest. Your savings will decide which one to pick. And what you are planning for the long run.
  
  
• Future–If food is your hobby and you want to do it as a side business, a food truck is the best pick, and if it will be your business, then a restaurant should be your choice. 
  
  

The food industry has changed a lot in recent years, with people having more quick foods, healthy diets and home deliveries. Both restaurants and food trucks are getting a lot of attention. The decision is up to the individual, which one to pick based on their choice and budget. Mile High Tikka Express is a food truck of Indian-American fusion cuisine which covers all of Denver in a month on a schedule. Check out our page to know more about us and see how a food truck works. At Mile High Tikka Express, we’ve seen firsthand how a food truck can turn a passion for food into a thriving business across Denver.