Name: Gurneet Kaur
Class: ACC 5110
Professor: Dr. Xuehu (Jason) Song
Date: 02/17/2019
Individual Case I
1. List and briefly describe the advantages and disadvantages inherent to the food
truck business model as compared to traditional restaurants.
Advantages:
a) Low start-up cost- The initial cost to startup a food truck business is low as compared
renting or buying a real estate for a traditional business. Food trucks bring business to the
customers.
b) Easy to move- Food truck can easily change locations based on demand for example for
shows, events, exhibitions, parties, etc.
c) Low overhead costs- Cashiers, hosts, servers, chefs, utilities and paying all the staff in
general can really stack up in a traditional restaurant but with a mobile kitchen cost goes
down and it’s cheaper to run and manage the business.
d) Fewer permits and taxes: Food trucks do not require as many permits as a traditional
restaurant. Also, food trucks do not pay property taxes and have lower payroll taxes.
