Operating a Food Truck Business in Louisville, Kentucky

Transcription

OPERATING A FOOD TRUCK BUSINESS
Operating a Food Truck Business in
Louisville, Kentucky
David Oetken, MBA CPM
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F
ood Trucks have recently become a mainstay in the restaurant industry. A food truck
offers a less expensive way to get started in the hospitality business than a traditional
restaurant. However, as with any business, there are more questions than answers as
an entrepreneur begins his journey. We’ve gathered as much information as possible to
help you get started in this Food Truck publication.
The Louisville Small Business Development Center is committed to providing educational
resources that help entrepreneurs like you make the most of every busy, rewarding day.
Small businesses are the heartbeat of this region’s thriving economy, and we’re here to
help you succeed.
David Oetken
Director, Louisville Small Business Development Center
Copyright © 2014 by David Oetken
No part of this publication may be reproduced or transmitted in any form or by any means, mechanical or electronic, including
photocopying and recording, or by any information storage and retrieval system, without permission in writing from the Publisher.
Requests for permission or further information should be addressed to the Publishers.
Published by:
LouPreneur©. LLC
5682 Shepherdsville Rd
Louisville, Ky 40205
Legal Notices: While all attempts have been made to verify information provided in this publication, neither the Author nor the Publisher assumes any
responsibility for errors, omissions, or contrary interpretation of the subject matter herein. This publication is not intended for use as a source of legal or
accounting advice. The Publisher wants to stress that the information contained herein may be subject to varying state and/or local laws or regulations.
All users are advised to retain competent counsel to determine what state and/or local laws or regulations may apply to the user’s particular situation
or application of this information. The purchaser or reader of this publication assumes complete and total responsibility for the use of these materials
and information. The Author and Publisher assume no responsibility or liability whatsoever on the behalf of any purchaser or reader of these materials,
or the application or non-application of the information contained herein. We do not guarantee any results you may or may not experience as a result
of following the recommendations or suggestions contained herein. You must test everything for yourself. Any perceived slights of specific people or
organizations is unintentional.
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Contents
ARE YOU READY TO START A FOOD TRUCK BUSINESS?........................... 4
Owning a small business: what does it entail?........................................................................ 4
A day in the life of a food truck owner....................................................................................... 5
HOW TO START A FOOD TRUCK BUSINESS......................................................... 6
Creating a business plan............................................................................................................ 6
Financing your business............................................................................................................. 7
Setting up your business........................................................................................................ 8
Legal Structure........................................................................................................................ 8
Registering your business name........................................................................................... 8
Registering for taxes............................................................................................................... 8
Creating a menu....................................................................................................................... 8
Finding a truck........................................................................................................................ 10
Food truck floor plans.......................................................................................................... 11
Powering your food truck.................................................................................................... 11
Licenses and permits............................................................................................................ 11
The Health Department....................................................................................................... 12
Commissary kitchens........................................................................................................... 13
Insurance.............................................................................................................................. 13
RUNNING YOUR FOOD TRUCK BUSINESS........................................................ 14
Parking your food truck........................................................................................................ 14
Marketing your business...................................................................................................... 14
Potential challenges.............................................................................................................. 15
Additional tips for success.................................................................................................. 16
OPERATING A FOOD TRUCK IN LOUISVILLE, KENTUCKY........................ 16
Licenses and permits............................................................................................................ 17
Health Department Requirements..................................................................................... 18
FORMS & RESOURCES............................................................................................. 20-28
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ARE YOU READY TO START A FOOD TRUCK BUSINESS?
If you dream of owning your own
business and have a love of food,
starting a food truck business can be
a great way to share your culinary
ingenuity without opening a brick and
mortar restaurant. Food trucks have
gained popularity among consumers
who seek them out for fast, tasty
fare that is also well-made and often
unique. As with any small business,
food truck ownership involves wearing
different hats and using a multitude of
skills. It requires an innovative mindset,
dedicated work ethic and—perhaps
most importantly—a passion for your product. This guide was created to help aspiring food truck owners
navigate the process of getting their businesses up and rolling.
Owning a small business: what does it entail?
Becoming a small business owner is a big commitment. While the freedom of being your own boss and
managing your own time can be enticing, in order to reap the rewards of business ownership, you must do
your due diligence and maintain realistic expectations. Most small business owners work long hours and
perform numerous tasks in the course of a day. For a food truck owner, this means not only preparing your
food, but also maintaining the truck, bookkeeping, marketing, customer service, taking care of problems
that arise, managing staff, maintaining inventory, and scheduling events and locations. It may sound
overwhelming, but it’s completely manageable—and fun—if you’re well prepared.
Food truck owners go into the business because they love
food and want to share it with others. But there are many
other characteristics that make for a successful food truck
owner. The following is a list of some of the qualities that
thriving food truck owners share. Before jumping into
your food truck venture, ask yourself if you embody these
qualities:
•Willingness to learn new things
•Strong work ethic
•Time-management mastery
•Innovative mindset
•Ability to take action
•Social media know-how
•Good people skills
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Market Research
Before setting out in the food truck business, you will also need to do some research. What is the food
truck market like in your area? Is it already oversaturated, or is it growing? What is the perception of
food trucks among consumers in your city? Is there a particular type of food not currently represented
by existing food trucks? Follow your favorite local food trucks on social media to gain a sense of how
they market their product and interact with consumers. Try out different food trucks and observe where
they tend to park, the types of menu items they provide and how busy they are at different times of
the day. Keep an eye out for what they might be doing right—or wrong—that could be impacting their
success. Talk to the owners and let them know you’re interested in the food truck industry. The food
truck community tends to be supportive and helpful toward budding food truck owners, so tap into that
community. Many cities also have food truck groups or associations where people in the industry share
ideas and knowledge. Find out if there is one in your area, and contact them for information on the local
food truck scene. They might even offer job shadowing or opportunities to work food trucks at events
and festivals so you can get a taste of the business before starting out on your own.
A day in the life of a food truck owner
An advantage of getting to know other food truck owners in your area is that you can gain an understanding
of what they actually do on a day-to-day basis. There’s much more to running a food truck than parking
and cooking up some grub. Although the daily activities of food truck owners can vary depending on the
type of food they serve and when they serve it, the following list provides an overview of what to expect
on a typical day.
1. Plan: Get ready for your day by going over your calendar of events and mapping out your
locations. Engage with customers by checking and updating your food truck’s social media
outlets, and respond to any questions or emails. You can also use this time to take care of
administrative or bookkeeping tasks.
2. Shop: To maintain your inventory of supplies and ingredients, place orders or head to the
store or market to stock up on items. If you serve food earlier in the day, you may want
to save your shopping for the afternoon or evening. If you mainly serve during afternoon
or evening hours, you may want to get your shopping and ordering out of the way in the
morning.
3. Prep: Next, you’ll head to your commissary kitchen to prep
your food. Many food truck owners prep as much as possible
the night before, but when you prep depends on the food you
offer and when you serve customers. Do what works for your
schedule.
4. Get Rolling: Once everything is prepped and your truck is
stocked, it’s time to drive to your first location and start serving
customers. Make sure you update social media throughout the
day so customers know where to find you—and entice them
to stop by.
5. Cleanup: At the end of the day, it’s time to return to your
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commissary kitchen. Clean up your truck (inside and out) and wash supplies and cookware.
Check your truck for gas, oil, propane and maintenance issues. Perform any prep that needs
to be done for the next day.
6. Take care of business: Now is the time to give your attention to any administrative,
marketing or inventory tasks that weren’t done in the morning.
7. Get some rest: Running a food truck is demanding and requires a lot of energy. Whether
you’re up serving customers in time for breakfast or catering to the late-night crowd, you’ll
need to get enough rest to stay on top of your business.
HOW TO START A FOOD TRUCK BUSINESS
Maybe you’ve made up your mind that opening a food truck is the right path for you, but you’re wondering
how to get started. This section contains information on creating a business plan, securing financing,
creating your menu, finding a truck, obtaining permits and licensing, and getting insured.
Creating a business plan
Writing a business plan a great first step in starting any business. Your business plan will help you map
out your goals and provide guidance in achieving them. If you’re going to take out a loan to finance your
business, you’ll need to submit a formal business plan to potential lenders. The following outline from the
Kentucky Small Business Development Center can help you get started.
1. Table of Contents with Page Numbers
2. Executive Summary (1–2 pages) -- This section should be the last section written.
a. Major points of business plan, including management team, market size, marketing
strategy, strategic alliances and potential profits.
b. Dollar amount requested and proposed terms for repayment.
3. Summary of the business or general company description
a. Explanation of the business.
b. Mission statement, company goals and objectives, business philosophy.
c. Description of industry, overview of product(s) or service(s) offered, market and
competition, and management experience.
d. Company strengths and core competencies.
e. Legal form of ownership.
4. Products or Services Offered
a. In-depth explanation of products and/or services, pricing, fee structure, if applicable.
5. Marketing Plan
a. Market Analysis
i. Target Market: Identification of customers and demographic information
explaining their characteristics.
ii. Industry Overview: Detailed analysis of market size, growth, major trends, etc.
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6.
7.
8.
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iii. Competition: Detailed analysis of top 3–5 competitors (review of competitors’
strengths and weaknesses).
b. Market Strategy
i. Detailed explanation of how your company will capture market share and your
marketing/advertising/public relations plan.
Operational Plan
a. Explanation of the daily operations of the business: location, equipment, legal
environment, personnel, processes, etc.
Management and Organizational Plan
a. Detailed description of your team’s experience, strengths, job functions, and plans to
fill gaps in management team.
Financial Data – 3-year Financial Projections
a. Cash flow, assumptions, income statement, balance sheet spreadsheets, break-even
analysis, sources and applications of funds.
Appendix with supporting documents, contracts, letters of intent, research, etc.
Your Small Business Development Center can help you draw up your business plan, so see them for
one-on-one guidance.
Financing your business
Identifying business objectives and strategies in your business plan will
help you pinpoint the amount of financing you’ll need to get your food
truck business up and running. When it comes to financing, you have a few
options.
• Self-financing: If you have enough savings or income to cover startup costs on your own, you
won’t have to worry about applying for a loan or incurring interest when paying it back. Before
choosing to self-finance, evaluate the numbers in your business plan as well as your personal
income needs to determine whether it’s the right option for you. If you can’t currently afford to
finance your food truck business but don’t want to take out a loan, work toward saving additional
funds until you have enough capital saved.
• Loans: If you don’t have startup funds, taking out a loan can help you get your food truck
started. Once you’ve created your business plan, you can apply for financing at a bank or financial
lender. Be aware that in addition to reviewing your business plan, financial records and other
documentation, lenders will be checking your personal credit to determine whether you quality
for a loan. Address any credit issues prior to applying.
• Microloans: The U.S. Small Business Administration (SBA) offers a Microloan Program through
designated intermediary lenders that provide loan amounts under $50,000 to small businesses.
For additional information, see www.sba.gov.
• Investors: Similar to a loan from a bank or financial lender, an investor will lend you money
to start up your business— in return for a piece of the pie. Like lenders, potential investors will
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want to see your business plan and financial information. Convincing investors to help you out will
require that you sell them on your business idea and its viability.
• Crowdfunding: Another option for financing your food truck business is through crowdfunding
sites like Kickstarter, GoFundMe and Indiegogo. To succeed at crowdfunding, you’ll need to
create a persuasive campaign with effective incentive goals, and you’ll need to tirelessly market
and promote your campaign to get the word out.
Setting up your business
Once you have secured financing, you can get to work on actually setting up your business. This includes
determining the legal structure of your business and registering with the necessary government entities.
Legal Structure
The legal, or organizational, structure
of your business determines how you
file your taxes—and how much you
pay—as well as the liability you may
face and how you’re required keep your
records. Choosing your organizational
structure is one of the most important
business decisions you’ll make. For
assistance, contact your local small
business administration or speak to an
attorney who can help you choose the
best option.
• Sole Proprietorship: This is the most basic organizational structure. A sole proprietor owns the
company and all assets and liabilities.
• Partnership: In this organizational structure, two or more people have ownership. Each partner
shares profits and losses and is responsible for liabilities.
• Corporation: Typically used by larger companies, a corporation is a separate entity from its
leaders. A corporation is responsible for the organization and is separately taxed. Corporations
have complex legal and tax requirements.
• S Corporation: In this type of corporation, the owners elect to run business profits and losses
through their personal tax return rather than having the business taxed. Any owner of an S
Corporation who also works for the business must pay himself or herself a reasonable salary.
• Limited Liability Company (LLC): An LLC is similar to a partnership in that that the owners
report profits and losses on personal tax returns, but like a corporation, owners are protected
from personal liability.
Registering your business name
Because your business name is such a vital part of your business identity, there are many factors you
should consider in choosing it. First, verify that your preferred name is available both as a business entity
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(check with your state filing office) and web domain name, as well as on social media outlets. You can also
check to see if it is already trademarked through the U.S. Patent and Trademark Office. Although you are
not required to trademark your business name, doing so can protect you if another business tries to use
the same or a similar name. This might be a good idea if you plan to do business across state lines. Examine
your name on paper to get an idea of how it will look on your truck and logo, as a domain name and on
social media. Make sure your chosen name is representative of the style of the food you will be serving
and that it will be appealing to your target market.
Registering for Taxes
Once you’ve decided on a name, visit the IRS website to go about the process of obtaining an employer
identification number (EIN). Next, register with your local and state government. How your business
name is legally registered depends on local and state laws, as well as the organizational structure of your
business. For assistance, you can go to your local Small Business Development Center. You may also
consider hiring an accountant to guide you through tax guidelines and requirements.
Finally, reserve your domain name and social media accounts so that they’re ready and waiting to be used.
You can set up these accounts now and go live once you get closer to your opening date.
Creating a menu
Because different foods and food preparation
processes have different health department
guidelines, you will need to create your menu prior
to obtaining your permit. The food you plan to serve
will also determine your equipment needs and
setup. In planning the types of menu items you want
to include, first think about the existing food trucks
in your area and what they offer. If there are already
several barbeque trucks in your city, perhaps you
should offer something different. Think about the
holes in your local food truck market and what types
of cuisine might be missing. For example, if there are
no trucks in your area currently serving Greek food
that could be your niche. What can you bring to the
market that no one else is offering yet? Also consider how you might put a fresh spin on a conventional
food item.
You’ll also want to think about how you can create menu items that are conducive to the food truck
environment and easily transportable. Some other questions to answer while putting together your menu
include:
• What types of foods do you excel at making?
• What types of ingredients are readily available your area?
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Will you prepare foods ahead of time in your commissary kitchen or make to order on the truck?
Will you be serving hot or cold food?
At what times of day do you plan on serving customers?
What will prices need to be in order to make the business sustainable?
Focus on creating a menu that is simple, uses primarily the same ingredients with minor modifications
for different items, and that consists of food you can prepare easily and affordably. Don’t be afraid to
think outside the box and explore creative ideas. One benefit of owning a food truck is that you can
experiment with your menu and slightly vary your offerings based on what customers want. Keep in
mind that your menu should tie in with the concept of your food truck’s name and overall look. And,
most importantly, make sure the food you’re creating and serving is something you enjoy!
Finding a truck
When it comes to finding a vehicle out of which to
operate your food truck business, you have a few
options. First, you’ll need to decide what type of
vehicle (cart, trailer, truck or van) will work best for
your business based on the food you’ll be serving,
your equipment needs and the number of people
who will be working for you. You’ll also need to
consider your local commercial vehicle and parking
restrictions, as well as the areas where you plan to
serve food (parks, festivals, events or on the street).
If you’ll be serving ready-made foods, a cart might suit your needs. If you’ll need to fit into tight parking
spaces, a van might work best.
Once you choose the type of vehicle best suited to your business, the question is: buy it ready to go or
make it a DIY project? The following list provides a rundown of some different routes to obtaining your
vehicle:
• DIY: Buy a new or used vehicle and retrofit it yourself. It may sound daunting, but many food
truck owners get started this way. Not only will this method allow you customize the interior
to your needs, but it will help you gain understanding of the inner workings of your truck—
knowledge that could come in handy when you have future maintenance issues. Talk to other
food truck owners in your area or go to your local food truck association for assistance and
advice. You’ll also want to hire professionals to help out with the plumbing and electric.
• Get it customized: You can purchase a new or used vehicle and hire someone to modify it for
you. While this will likely cost more, it will save you the work while you focus on other aspects
of getting your business going.
• Buy a used truck: Another option is to find a used food truck. Many existing food truck owners
have found their trucks through eBay, CraigsList or other resources. Just be aware that different
states have different health code guidelines and plumbing requirements. So if you buy a truck
from another state, you’ll have to make sure it meets your state’s standards.
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• Buy a ready-made truck: You can also buy a brand-new, ready-to-go truck that is custom built
or modified for your business. Keep in mind that this can get expensive.
Another great resource to help find your truck is roaminghunger.com. Their Marketplace contains listings
of food vending vehicles for sale, as well as information on building your vehicle yourself.
Whether you buy your truck, purchase something new or used, or outfit it on your own depends in large
part on what you can afford. While it may be tempting to think you need a shiny, brand-new, custom-made
vehicle, many successful food truck owners found a used van or truck and retrofitted it themselves. You
can always upgrade your truck as your business grows.
Food truck floor plans
In order to obtain your health department permit, you’ll need to submit a blueprint outlining the inside
of your food truck. This will need to be approved by a master plumber prior to applying for your permit.
Follow these steps to create the layout of your food truck:
1. Determine all of the equipment required to prepare the food you will be serving, and make a list.
2. Figure out how much space each piece of equipment will take up, and write down the
measurements.
3. Consider how much space you (and other workers) will need inside the truck to move around and
perform your job efficiently.
4. Start to draw out your plan, experimenting with different layouts. Because you’ll be spending a lot
of time in your truck, you want it to be a space you enjoy.
5. Make sure your plans meet your health department’s guidelines and that your layout is conducive
to cleanliness and proper hygiene.
Powering your food truck
Most food trucks are powered with a propane tank and generator. The propane tank and generator
appropriate for your truck will depend on your power needs. In choosing a generator, the key is to find
one that is relatively quiet—around 69 decibels. Honda generators are popular among food truck owners,
because they are quiet and low-maintenance. Some food trucks power off of batteries or even solar power,
and there are movements among food truck owners to make their trucks greener. As with other aspects
of food truck ownership, be creative in finding the power solution that will work best for your truck and
the food you’re serving.
Licenses and permits
A major part of the process of starting a food truck business is obtaining all of your necessary licenses,
permits and other required documentation. While they vary from state to state and city to city, you can
generally expect to need the following:
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•
•
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Health Department permit
Business license
Mobile food facility permit
Proofs of registration from your local and state revenue offices and department of deeds and
records
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• Your photo ID as operator of the truck
• Vehicle registration, license number, and proof of insurance
• Proof of business liability insurance
The Health Department
Like any establishment that serves food, your
food truck will require a health department
permit and will have to undergo routine health
department inspections to ensure it’s up to
code. Go to your local health department to
find out what their requirements are and learn
about the application process for a permit. To
obtain your operating permit, you’ll likely need
to get certified as a food manager.
Health department inspectors will be checking
how you prepare and store your food, that your
truck is clean and that all workers are adhering
to correct food handling techniques. They will
also check out all of your food equipment,
sinks and water supply and will make sure you have a fire extinguisher and adequate trash receptacle.
Because health department guidelines vary in different municipalities, you’ll have to be informed and
up-to-date on the guidelines dictated by the health department in your state and county.
The planning and building of your truck (or modifying it if you buy an existing or pre-made truck) will go
hand-in-hand with ensuring you are up to code. For example, the plumbing and power sources in your
truck, as well as equipment specifications, are all dictated by your local and state requirements.
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Commissary kitchens
A commissary kitchen is a permitted,
brick and mortar, commercial kitchen
where food service providers can
rent and share space to prepare and
store food. State health departments
require food truck operators to use a
commissary kitchen for preparation
and storage based on food type and
preparation process. Some commissary
kitchens are large shared facilities
that provide kitchen space (including
refrigeration), as well as services such
as parking for your truck, a truck wash
and maintenance facilities. Some may
also provide ice or wholesale beverages to their members, and most charge very reasonable fees. Any
permitted kitchen space (such as a restaurant or church) can be used as a commissary if you can work out
an agreement with the owners. If you don’t wish to share kitchen space, another option is to establish
your own private commercial kitchen. Like any food serve establishment, commissary kitchens undergo
inspections by the health department.
Insurance
In addition to securing commercial vehicle insurance for your food truck, you will need to obtain liability
insurance that covers bodily injury and property damage. You may also need business personal property
insurance, which covers some equipment, supplies and inventory. To make sure you’re adequately covered,
talk to an insurance agent. You can also take a look at the FLIP Program (fliprogram.com) for additional
information on insurance for food vendors.
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RUNNING YOUR FOOD TRUCK BUSINESS
This section covers some of the key aspects of running your food truck business and covers parking,
marketing your business, potential challenges food truck owners face and tips for success.
Parking your food truck
Many food truck owners say they love that they’re always
on the go, seeing different parts of their cities and serving
different groups of customers each day. However, this
advantage comes with a challenge: knowing where to park
your truck to serve food (and when you can park there).
While your parking will depend on park regulations and
ordinances in your area, there are some general guidelines
you can follow.
• Become familiar with your city’s zoning laws and
parking regulations. In most cities, you can park in a metered spot if you get the meter bagged
ahead of time or feed the meter while you’re serving customers.
• Check with your county clerk’s office to find out which areas are off-limits to food trucks.
• Get written permission from property managers or owners to park on private property.
• Avoid parking near other businesses that serve food. In fact, your city probably has a law
dictating how far away you must be from another food establishment.
• Don’t obstruct roadways or sidewalks with your food truck, and make sure customers will have
space to line up without blocking traffic.
• If you plan on serving food in parks, get permission from your city or local parks department.
• Health codes require that you are parked where you have access to a restroom.
Think strategically when trying to figure out where to park and serve food. If you serve breakfast or lunch
during the week, you might want to accommodate the working crowd. Consider parking in a business
district, business park or near large businesses in your area. If you serve food the late-night crowd might
enjoy, focus on parking in areas with vibrant night life. Keep yourself up to date on events, festivals and
tourist attractions in your city, and take advantage of those crowds. Working events and festivals can also
be a good way to gain experience and grow your truck’s following when you’re starting out. Some cities
also have food truck parks—areas specifically set aside for food trucks to gather and serve customers.
Marketing your business
Food trucks owners are known for their social media marketing expertise. Because they’re always on
the go, social media allows them to deliver live updates on their location so customers can track them
down. When those customers share, post and tweet about the truck and its delicious eats, their friends
and followers feel compelled to give it a try, thus spreading the word. So as you prepare to start your
business, familiarize yourself with social media sites such as Facebook, Twitter and Instagram. You will
need to create accounts for your business on these sites, in addition to creating a webpage. Here is a
brief description of how you can use these online outlets to promote your business:
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• Facebook: Use your food truck’s Facebook page to interact with customers. In
addition to posting basic information such as menu items, locations and pictures of
your truck and food, offer promotions and initiate conversation on Facebook. For
example, you could poll followers on their favorite menu item or do a contest to
suggest or name new menu items.
• Twitter: Tweet your locations throughout the day so customers can easily track you
down.
• Instagram: Want potential customers to crave your delicious offerings? Post your
food photos to Instagram to draw in clientele.
• Website: Your food truck business website can feature general information about
your business, the story behind it and about you as an owner. It should also include
your menu, pictures of your truck and information about how customers can locate
you on a day-to-day basis.
When posting to social media, make sure your voice and images are in line with your overall brand.
Promote the idea that eating at your truck is a fun event that will make a customer’s day special. Always
keep your posts positive, upbeat and fun, and make a habit of responding to customers’ comments. Let
your personality and the personality of your brand come through so customers feel a stronger connection
with you and be more likely to support your business. At times, customers will post complaints or
suggestions to your social media accounts. Always respond graciously and vow to improve.
You can also promote your business by partnering with other food truck owners in your area. Consider
joining a food truck association and get to know your food truck community. Food truck businesses often
help one another out, so get connected early on. If you’re operating a dessert truck, you might plan with
a dinner truck to park nearby. If you’re serving mac-and-cheese, you might partner up on location with a
barbeque truck so customers can take advantage of both options. Veteran food truck owners who don’t
want to work a festival or event also might hand the job off to newer food trucks.
Potential challenges
It is doubtless you will face some challenges on your journey as a food truck owner. These difficulties can
be overcome with persistence, hard work and ingenuity. One such challenge can be public perception
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of food trucks. In recent years, food trucks have risen to a more elevated status in the public eye, but
for some people and in some regions, there are negative associations with food trucks. The more great,
high-quality food trucks on the streets, the more positive they become to the public.
Another challenge sited by food truck owners is getting customers through the line in a timely manner
and maintain a quick ticket time. Patrons go to food trucks as an on-the-go option, so you can’t keep
them waiting. A good rule of thumb to follow is that a customer should spend no more than a couple of
minutes in line and five to seven minutes between ordering and receiving their food.
Many experienced food truck owners will tell you their biggest challenge has been managing heat and
power on their truck. This challenge is overcome by being educated on powering your truck and not
skimping on your power sources. Keep in mind that when you work in your truck during warm weather,
it can get hot. You’re working quickly in a small space, you’re powering equipment and you’re cooking
food, so stay hydrated and take breaks for fresh air.
To avoid challenges associated with truck maintenance, stay on top of your truck’s maintenance and
care. At the end of each day, check your truck’s tires and power sources to make sure everything looks
to be in operating order. Check your oil and other fluids regularly, and take your truck to a mechanic for
route maintenance.
Additional tips for success
The following list is a summary of tips from experienced food truck owners:
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Stick to your business plan and maintain good business records.
Enlist help from professionals for legal and accounting services.
Create a good product, and price it fairly.
Build a brand identity and stick to it.
Grow a following on social media to market your business.
Network with other food truck owners in your community.
Promote your business by working events and festivals.
Hire staff you trust and like being with, and treat them fairly.
Adhere to strict quality control and consistency in the food you serve.
Maintain a fun and cheery attitude when serving customers.
OPERATING A FOOD TRUCK IN LOUISVILLE, KENTUCKY
Because the requirements for operating your food truck and obtaining the necessary permits and
licenses vary among states and cities, you need to make sure you’re informed about the guidelines for
your area. This section provides information about starting your business in Kentucky, the local health
department requirements and other rules and regulations for operating a food truck in the area.
Getting your business up and running in Kentucky
The Kentucky Small Business Development Center (KSBDC) helps small business owners get started.
As you begin the process of starting your food truck business, go to them for one-on-one assistance
16
from a KSBDC consultant who can guide you through the steps to starting your business and answer any
questions you may have. The KSBDC also offers training sessions and online courses.
To start your food truck business in Louisville, Kentucky, follow these steps, many of which were discussed
in greater detail in previous sections of this handbook.
1. Develop your detailed business plan.
2. Secure the financing you need to get started.
3. Select your business name and choose an operating entity.
4. Register with the Kentucky One-Stop Business Portal.
5. Register any trademarks or service marks with the Kentucky Secretary of State.
6. Obtain a federal employer identification number (EIN) from the IRS.
7. Obtain city and county occupational and business licenses (see below).
8. Register with the Kentucky Revenue Cabinet for required taxes.
9. Establish a bank account for your business.
10. Secure the necessary insurance coverage for your business.
Licenses and permits
Once you have followed the steps above to establish your business entity, you will need to obtain the
licenses and permits required to operate a food truck. Follow these steps to ensure you are properly
licensed and permitted.
1. Obtain a Food Truck Vendor Application form from the Louisville Metro Health and Wellness
Department (LMHD) and submit your menu along with this completed form.
2. The LMHD will let you know if you will be required to use a commissary kitchen to prep your food.
(See additional information in the next section of this document.)
3. When purchasing or building your truck, use a licensed master plumber who will ensure your
plumbing adheres to Kentucky state code (which will be required to obtain your LMHD permit).
4. Register with the Jefferson County Clerk’s Office, Deeds and Records. To do this, bring the your
proof of registration from the Kentucky Secretary of State to the Jefferson County Clerk Deed
Room at 527 West Jefferson Street, Room 204. You can also reach them at 502-574-6220.
5. Register with the Louisville Metro Revenue Commission. This office will provide your Sales and
Use Certificate, which must be carried on your truck at all times.
6. Obtain your driving records from any state in which you have resided for the past five years.
7. Register your food truck vehicle with the Kentucky Division of Motor Vehicles.
8. Obtain your LMHD permit.
1. Request a mobile food unit application form from the Louisville Metro Health Department.
Along with this form, submit four sets of floor plans labeling all essential equipment.
Include an isometric drawing (riser diagram) that includes sinks, tanks and water heater.
(For help with this, refer to Chapter 5 of the 2005 FDA Food Code.)
2. Once approved, a plumbing inspector will contact you for an on-site inspection.
3. Next, you will need to contact the health department to set up your opening inspection.
9. Obtain your Louisville Metro License. The Permits and Licensing Office is located on the 2nd floor
of 444 South 5th Street. They will require you to fill out a vendor application form. With this form,
submit the following:
• Proof of registration with the Louisville Metro Revenue Commission.
• Proof of registration with the Kentucky State Revenue Commission (your Sales and Use
Certificate).
17
•
•
•
•
•
•
•
•
Proof of Registration with the Kentucky Secretary of State, if you are incorporated.
Proof of Registration with the Jefferson County Clerk’s Office Deeds and Records.
Proof of LHMD Mobile Food Unit Permit.
Photographs and dimensions of your mobile food vehicle.
Your driving record for the past five years.
Proof of vehicle registration.
Proof of insurance.
Your valid driver’s license or operator’s license.
Here is an overview of what you can expect your various licenses and permits to cost:
•
•
•
•
•
•
Louisville Metro Health Department permit: $120 (annually)
Mobile Vendor Vehicle Permit: $200 (annually)
Mobile Vendor Permit ID: $50
Temporary Vendor Permit (30 days): $125
Temporary Vendor Permit (3 days): $25
Master Annual Vendor Permit: $500
The city’s license and permits enforcement officers routinely check to make sure food trucks are following
protocol. Some of the things they will be looking for include:
Permit for the vehicle and the health department visible at all times
Vendor has valid photo ID
No signs other than what is on the truck itself
Workers are dressed appropriately
The truck is in good operating condition and visual appearance
There is a 2A-40BC fire extinguisher onsite
There is a 30-gallon trash receptacle onsite and clean up any trash left by patrons
The truck and customer line are not obstructing traffic or blocking the sidewalk
There are no flashing lights or strobe lights that may distract drivers
You are parked at least 150 feet from other food service establishments
You are not soliciting or conducting business with motorists
You are not yelling, calling out, whistling or otherwise audibly seeking attention
Your vehicle is parked in the same direction as traffic
Your vehicle remains mobile at all times (if you have a food cart or trailer, you cannot detach it
from the vehicle)
• You are legally parked
•
•
•
•
•
•
•
•
•
•
•
•
•
•
Health Department requirements
The LHMD specifies certain features and equipment required for your food truck. These specifications
include:
•
•
•
•
•
•
•
Kitchen completely enclosed within the truck
A three-compartment sink
A separate hand sink
Hot and cold running water
A water heater that complies to Kentucky State code
A wastewater tank 50% larger than your freshwater tank
External power source
18
• Health department permit on display at all times
• Screening or air curtains to block insects
• Sanitizer and testing strips (bleach water should equal 50 to 200 ppm, and QUAT water should
equal 200 to 400 ppm)
• Metal stem thermometer to check food temperatures
According to health department guidelines, all food must be prepared on your truck on location of selling
unless it is a food that requires a commissary kitchen. In Kentucky, food requires a commissary kitchen if:
• Food supply is purchased in bulk.
• Food is prepared in advance of the day it will be sold.
• Food preparation involves a complex process, which consists of receive, store, prepare, cook,
cool, reheat, hold-hold and serve.
• Food preparation takes more than four hours.
A commissary kitchen is defined as a permitted food service establishment that provides a facility for
operators to prepare, heat, process, store and package food that will be sold offsite direct to the consumer.
The food truck operator will maintain a separate food service permit for a commissary. In Louisville, two
existing commissary kitchens include Kytchen and Speedi Hot.
The health department also requires that you park in a location with access to a public restroom. Your
truck can sit in one location for 14 consecutive days, but then cannot return for 30 days thereafter.
Additionally, a certified food manager must be onsite at all hours of operation. You can earn your food
manager certification from the health department.
Parking your truck
The rules and regulations for parking your food truck in Louisville can be found here:
http://services.louisvilleky.gov/media/foodtrucks/vps_ordinance.pdf
Mobile food unit vendors are not allowed to park within 100 feet of an occupied residence or within
150 feet of any restaurant or eating establishment during a time it is open for business (unless written
permission is obtained from the owner). Your Louisville Metro License allows you to park at a parking
meter for up to four hours or in a legal parking space.
According to Louisville Metro Ordinance 115.350 (found in the above referenced document), to operate
on private property, mobile food unit vendors must obtain written authorization from the business owner
(or an authorized representative of the business owner). This written authorization must be submitted to
the Louisville Metro Permits and Licensing office at least 10 hours prior to operating at the location.
Connect with local food truck owners
Contact the Louisville Food Truck Association to talk to seasoned food truck owners in the Louisville area.
They can help answer your questions as you get started, and once your food truck business is up and
running, you can apply for membership.
19
20
PLAN REVIEW CHECKLIST & SUPPLEMENTAL
INFORMATION SHEET FOR MOBILE FOOD UNIT
21
22
23
PLAN APPLICATION FORM
COMMONWEALTH OF KENTUCKY
DEPARTMENT OF HOUSING, BUILDINGS AND CONSTRUCTION
DIVISION OF BUILDING CODE ENFORCEMENT & DIVISION OF PLUMBING
101 SEA HERO ROAD, SUITE 100
FRANKFORT, KENTUCKY 40601-5405
BUILDING CODES: 502/ 573-0373
NOTE: Complete all applicable spaces
REV.6/2008
PLUMBING: 502/ 573-0397
Please type or print
NAME OF PERSON
SUBMITTING PLANS
Today’s Date: __________
PHONE (
)
IS THE BCE PLAN REVIEW FEE
YES
INCLUDED WITH PLANS? (circle one) NO
-
MAILING ADDRESS: ______________________________________________________________________________________________________________________________________________________
NUMBER / STREET, HWY, ROAD or P. O. BOX
CITY
STATE
ZIP CODE
BUSINESS & PROJECT NAME:
(Or tenant name if multi-tenant building) _______________________________________________________________________________________________________________________________________
PROJECT LOCATION:
_________________________________________________________________________________________________________________________________________________
NO./ STREET, HWY or ROAD ( Please do not indicate P.O. Box or Postal Routes )
CITY
ZIP CODE
OWNER (INDIVIDUAL & COMPANY): ___________________________________________________________________________________________ PHONE (
COUNTY
)__________ - _______________
MAILING ADDRESS: ______________________________________________________________________________________________________________________________________________________
CITY
STATE
ZIP CODE
ARCHITECT (NAME & FIRM)_________________________________________________________________________________________________ PHONE (
I , AS THE ARCHITECT LISTED ABOVE, AM RESPONSIBLE FOR CONSTRUCTION CONTRACT ADMINISTRATION.
Γ YES
)__________ - _______________
Γ NO
MAILING ADDRESS: ______________________________________________________________________________________________________________________________________________________
CITY
STATE
ZIP CODE
ENGINEER (NAME &FIRM)____________________________________________________________________________________________________ PHONE (
)__________ - ______________
MAILING ADDRESS: ______________________________________________________________________________________________________________________________________________________
CITY
STATE
ZIP CODE
PROJECT CONTRACTOR:____________________________________________________________________________________________________ PHONE (
)__________ - ______________
MAILING ADDRESS: ______________________________________________________________________________________________________________________________________________________
CITY
STATE
ZIP CODE
BUILDING INFORMATION
NUMBER OF BUILDINGS IN THIS SUBMITTAL: __________ USE OF BUILDING(S)
ie...restaurant, office, classroom, storage or other ( please specify )__________________________________________
BUILDING(S) IN THIS PROJECT IS / ARE:
NEW FREESTANDING BUILDING
NEW ADDITION TO EXISTING STRUCTURE
TOTAL AREA IN NEW BLDG. OR ADDITION: ____________________ FT 2 NUMBER OF LEVELS (INCLUDING BASEMENT) _____________
TOTAL AREA IN EXISTING BLDG.: _____________________FT 2
DATE CONSTRUCTION TO BEGIN: ____________________
RENOVATION ONLY
BASEMENT
YES
RENOVATION & ADDITION
NO
ESTIMATED COMPLETION DATE: ______________________
TYPE OF PLAN SUBMITTALS
BUILDING PLAN SUBMITTALS
(Check the type of evaluations requested at this time)
SHOP DRAWING PLAN SUBMITTALS
(Check the type of evaluations requested at this time)
PLUMBING PLAN REVIEW
Plumbing Review ONLY
Water Supply Review
Waste Water Review
Other (please specify)
__________________________________
BUILDING PLAN REVIEW (BCE)
Full Building Review
Expedited Site & Foundation Review
Partial Evaluation (please specify)
__________________________________
SUBMIT ONLY ONE SET FOR BCE
Range Hood System
Fuel Tank
Elevator
Swimming Pool
Prefabricated Truss
Suppression System
(Sprinkler, CO5, Etc.)
Alarm Systems
Boiler System
Bleacher Seating
_____________________________
SUBMIT ONLY ONE SET OF PLANS FOR THE ABOVE
SEE BACK OF THIS FORM FOR PLUMBING PLAN SET
REQUIREMENTS
THE INFORMATION IN THIS SECTION IS FOR THE DIVISION OF PLUMBING (TO BE COMPLETED BY PERSON SUBMITTING PLANS)
DESIGN CAPACITY OF BUILDING:
NO. OF MALES ________
SEWAGE DISPOSAL:
WATER SUPPLY:
TYPE:
PUBLIC
Γ MUNICIPAL
DRILLED WELL
NO. OF FEMALES ________
Γ PRIVATE
CISTERN
ARE RESTROOMS ACCESSIBLE TO PUBLIC ?
ARE RESTROOMS ACCESSIBLE TO DISABLED ?
HAULED WATER
ROOF WATER
YES
YES
SPRING
NO
NO
STREAM
IF PRIVATE, INDICATE THE TYPE AND THE DESIGN: ____________________________________________________________________________________________________
BY WHOM: _______________________________________________________________________________________________________________________________________
NAME
TITLE
REGISTRATION NUMBER
THIS SECTION TO BE COMPLETED BY THE LOCAL HEALTH DEPARTMENT OFFICIAL ( Must be
completed prior to sending Plumbing Plans to Frankfort )
THIS AREA FOR DEPARTMENT USE ONLY
REVIEWED BY: __________________________________________________________
NAME
_______________________________________________ DATE: _________________
TITLE
APPROVED BY:
COUNTY OR DISTRICT
HEALTH DEPARTMENT: ___________________________________________________
PART 1
11
24
continued on next page
1.
2.
3.
4.
A Plan Submission Application Guide (PSAG) describing the plan submission procedures is available upon request. Copies may be obtained
by calling or writing to the Department of Housing, Buildings and Construction, Division of Building Code Enforcement or the Division of
Plumbing. Our telephone numbers are: Building Codes 502/573-0373 or Plumbing 502/573-0397. Local Boards of Health should also be aware
of these procedures.
KRS Chapters 322 & 323 should be consulted to determine the requirements for a Registered Design Professional such as an Architect and / or
Engineer
PLUMBING:
Plumbing installations shall be made in conformance with the State Plumbing Code. The plumbing systems shall be shown in
plan view and elevation view (Riser Diagram). These plans shall indicate the location of all fixtures, water distribution system and soil, waste &
vent pipe systems. The size and material of all soil, waste & vent piping shall be clearly stated on the plans.
Check the regulations that may be applicable to the building type, such as: Kentucky Food Services Regulation, Kentucky Youth Camp
Regulation, Kentucky Retail Food Market Regulation, etc..
???? HOW MANY SETS OF PLANS TO SUBMIT ????
I.
NUMBER OF PLAN SETS REQUIRED TO BE SUBMITTED: Of the number of plan sets required, at least one shall be a complete set of construction documents
and the remaining sets may consist of plumbing plans only. Note: When submitting plans for specialized systems such as fire alarm or fire sprinkler
systems, only one(1) set of plans is required. Any plan submittal that does not involve plumbing should only have one(1) plan for the Division of
Building Code Enforcement.
NOTE: A plan set consists of 1 plan and 1 plan application form.
NOTE: When copying this form it is not necessary to copy this side.
1)
Counties or Cities not listed below - One(1) complete plan set and three (3) plumbing plan sets for a total of four (4) plan sets-----______________
2)
a) If in the city limits of Louisville - One(1) complete plan set and five (5) plumbing plan sets for a total of six (6) plan sets----------______________
b) If in Jefferson County and not within Louisville City Limits One(1) complete plan set and four(4) plumbing plan sets for total of five (5) sets------------------------------------------------------------______________
ALWAYS CHECK TO SEE IF ARCHITECTURAL REVIEW IS REQUIRED IN FRANKFORT BY THE DIVISION OF BUILDING CODES
NOTE:
TOTAL NUMBER OF PLAN SETS REQUIRED TO BE SUBMITTED-----------------______________
II.
ADDITIONAL PLAN SETS REQUIRED:
1)
Project has a swimming pool - add one (1) plumbing plan set------------------------------------------------------------------------------------------______________
2)
Project has a private water supply - add one (1) plumbing plan set-----------------------------------------------------------------------------------______________
3)
Project has a private sewage disposal system with treated effluent - add one (1) plumbing plan set-----------------------------------------______________
TOTAL NUMBER OF PLAN SETS REQUIRED TO BE SUBMITTED-----------------______________
SPECIAL PERMITS ARE REQUIRED FOR WATER SUPPLY AND WASTE WATER DISCHARGE PROJECTS
Applications and fees are required to be submitted to the Department of Housing, Buildings and Construction
or the Division of Water of the Natural Resources Cabinet for the following facilities:
1.
2.
WASTE WATER DISCHARGE PROJECTS
a.
Private packaged treatment plant with surface discharge.
b.
Sanitary sewer extension that includes a manhole or lift station.
c.
Extension or addition to a sanitary sewer district with no building structures involved.
d.
Individual pre-treatment facilities.
WATER SUPPLY PROJECTS
a.
Private water supply to individual structure (Excluding Single Family Dwellings).
b.
Addition to city or county water districts.
c.
Water supply treatment plants
TO OBTAIN SPECIAL APPLICATION FORMS AND TO DETERMINE IF A FEE IS REQUIRED, CONTACT THE NATURAL RESOURCES/ DIVISION OF WATER IN FRANKFORT @ 502/564-3410
If this project involves a plumbing system or plan related to a structure (building) approval, submit one(1) complete plan set and four(4) plumbing plan sets to the following:
NOTE: One of the plumbing plan sets will be forwarded to the Division of Water.
DEPARTMENT OF HOUSING, BUILDINGS AND CONSTRUCTION
101 SEA HERO ROAD, SUITE 100
FRANKFORT, KENTUCKY 40601-5405
502/573-0397
If this project does not involve a plumbing system or a structure (building) approval, submit four(4) plumbing plan sets and appropriate fee to:
DIVISION OF WATER
18 REILLY ROAD, FRANKFORT OFFICE PARK
FRANKFORT, KENTUCKY 40601
502/564-3410
PART 2
12
25
BUSINESS STARTUP RESOURCES
TAX & LICENSES (CON’T.)
Louisville Small Business Development Center (SBDC)
Best stop for free one-on-one small business
consulting, information and services
502.625.0123
www.ksbdc.org/locations/louisville
Internal Revenue Service (IRS)
Federal tax requirements
800.829.3676
www.irs.gov
Kentucky Society of CPA’s (KSCPA)
Info on tax issues, find a CPA
502.266.5272
www.kycpa.org
KSBDC - KY SBDC Network
Statewide SBDC network, startup info
888.475.7232
www.ksbdc.org
Jefferson County Clerk
Local name registration
502.574.5700
www.jeffersoncountyclerk.org
Small Business Administration (SBA)
Financing options, downloadable resources
502.585.5971
www.sba.gov
COMMERCIAL KITCHEN RENTALS
SCORE
Business counseling, mentoring
502.585.5976
www.score-louisville.org
Kytchen
1841 Plantside Dr, Louisville, KY 40299
502.272.0077
www.kytchen.com
Greater Louisville Inc. (GLI)
Metro Chamber of Commercenetworking, business support
502.625.0000
www.greaterlouisville.com
Speedi Hot
227 South 30th St., Louisville, KY 40212
502.778.8082
www.speedihot.com
EnterpriseCORP
Provides funding for fast growth, early stage
companies
502.625.0000
www.enterprisecorp.com
Louisville Commercial Kitchen
4712 Pinewood Rd, Louisville, KY 40218
502.377.1147
www.louisvillecommercialkitchen.com
WEBSITE HOSTING
Metro Louisville Government
Tax, permits & licensing info, METCO loan program
502.574.4140
www.louisvilleky.gov/government/louisville-forward
Bluehost
Affordable website hosting
www.bluehost.com
Louisville Free Public Library
Main branch. Business research information
502.574.1611
www.lfpl.org
HostGator
www.hostgator.com
GoDaddy
www.godaddy.com
Kentucky Cabinet for Economic Development
Business support services, tax incentives
800.626.2930
www.thinkkentucky.gov
b2evolution
www.b2evolution.net
WORDPRESS WEBSITES
Kentucky Secretary of State
Name availabilty search, business licensing
502.564.3490
www.sos.ky.gov
WordPress Websites
Easy to use website publishing software
www.wordpress.com
Better Business Bureau
Business reliability reports
703.276.0100
www.bbb.org
Thesis
Great site for WordPress themes
www.diythemes.com
Woothemes
Premium WordPress themes
www.woothemes.com
TAX & LICENSES
Metro Revenue Commission
Louisville/Jefferson County information on local tax
requirements
502.574.4860
www.metrorevenue.org
SquareSpace
Alternative DIY to WorkPress
www.squarespace.com
Kentucky Dept of Revenue
State tax requirements, sales tax
502.564.4581
www.revenue.ky.gov
26
WEBSITE DEVELOPERS
MOBILE PAYMENT SOLUTIONS (CON’T.)
Hatfield Media
Website, digital marketing, SEO & video
502.509.3349
www.hatfieldmedia.com
Dwolla
App allows pmts directly to approved vendor accts
www.dwolla.com
PayPal
Also allows payments directly from PayPal accts
www.paypay.com
Red Toad Media
Website & graphic design services
502.509.6538
www.redtoadmedia.com
VEHICLE WRAPS
Xtreme Media
Web design, graphics & digital marketing
877.307.6418
www.xtrememedia.com
Sign-a‐Rama
909 East Market, Louisville, KY 40206
502.585.4099
www.signarama.com
Elance
Online marketplace for professional help
www.elance.com
Digital EFX Wraps
2627 Holloway Rd, Louisville, KY 40299
502.267.2409
www.digitalefxwraps.com
oDesk
Elance’s kissin’ cousin
www.odesk.com
Louisville Graphics Inc.
612 East Broadway, Louisville, KY 40202
502.625.7446
www.louisville.graphics
EMAIL MARKETING
Constant Contact
www.constantcontact.com
COPYWRITERS
WordsfreshWor
Print and digital copywriting
www.wordsfresh.com
MailChimp
www.mailchimp.com
AWEBBER
www.awebber.com
GRAPHIC DESIGNERS
Karen Boone Design
502.634.5857
www.karenboone.com
icontact.com
www.icontact.com
madmimi.com
www.madmimi.com
BarisGraphics
410.596.1253
www.barisgraphics.com
SOCIAL MEDIA SCHEDULERS
Rob Gorstein Design
502.417.6966
www.robgorstein.com
Buffer
Easy scheduler for content across social media
www.bufferapp.com
Lizard Breath Graphics
502.338.6229
www.lizardbreathgraphics.com
Hootsuite
Execute campaigns across multiple social networks
www.hootsuite.com
Five Oaks Communications
502.545.1588
www.fiveoakscommunicattions.com
tweetdeck
Manage & monitor twitter feeds
www.tweetdeck.com
Redmon 2 Marketing & Design
www.redmon2.com
IFTTT
Manage social media through tasks & recipes
www.ifttt.com
FOOD TRUCK INSURANCE
MOBILE PAYMENT SOLUTIONS
Food Liability Insurance Program
888. 568.0548
www.fliprogram.com
Intuit GoPayment
Free hardware, great choice if using QuickBooks
www.intuit.com
Nationwide
502.239.5052
www.nationwide.com
Square
No monthly fee, contract or merch account
www.squareup.com
Flint mobile
Accept credit cards with smartphone camera
www.flint.com
Underwriters
502.244.1343
27
28

Operating a Food Truck Business in Louisville, Kentucky

Transcription

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