Let's head into Day 19, and discuss Ways to Measure Food Truck ROI
Return on Investment, ROI, is one of the most important key performance indicators that drives decision making and measures success. A common misconception with food trucks is the low start-up costs and immediate revenue stream. Just like any other business, starting a food truck is a business initiative and we'd like to identify ways to measure food truck ROI to get you started and allow you to accurately measure success.
Decide on the most effective ways to measure food truck ROI
Within your food truck business and operating plan, you need to determine what metrics are impactful and necessary in your food truck success. Is it..
- Marketing Campaign/Advertising ROI?
- (Gross Profit - Marketing Investment) / Marketing Investment
- Ingredient/Daily Product Overhead?
- Are you operating on a tight daily replenishment?
- Do you have space to purchase in bulk?
- What are the exact costs for each dish? What are you charging? What's the margin?
- Are your daily operating costs accounted for as recurring expenses?
Foodtruckempire.com highlights the Complete Breakdown of Food Truck Operating Costs, and provides a helpful spreadsheet that allows you to personalize and fit your food truck needs. APEX Specialty Vehicles is a verified builder on Foodtruckempire.com and has a great interview available on their site - http://foodtruckempire.com/builders/apex-specialty-vehicles/.
Once you have the reports drilled down to the important data you're trying to collect, and can automate a way to have the CSV file emailed to you on a monthly basis, your last element of the data is deciphering what it means. The key to translating the content is to be honest with the numbers. The numbers are telling the story, so it's crucial to see that story for what it truly is. Stay tuned for additional tips on ways to measure food truck ROI as we continue on #31DaysofAPEX.