Abram Interstate Insurance Services, Inc., CMGA

Helping Independent Insurance Agents Since 1996

Why Food Trucks Fail – Help your insurance customers

Published on December 16, 2014

As Food Trucks continue to expand, not just in number and location, but also in types of foods served, we want you to be prepared to help your customers! Because food trucks need insurance, and that’s something you can give them as their insurance agent to help protect their investment and their dreams.


But just like any new venture, starting a food truck can be risky, and not all who start a food truck will succeed. Help your customers have a better chance of running a business that will flourish by sharing this helpful article with them. Footruckempire.com asked 32 experts in the industry to give input about why food truck ventures sometimes fail. Here’s a few of the responses they got:

In my opinion food trucks fail for a number of reasons. I think people are under the impression that if you set up somewhere, people will just flock to you. You have to do the time in order to establish a presence. I also think that people underestimate the amount of work involved in running a food truck–the work is in the haul, but there is prep and actual cooking as well and that food has to happen in a timely manner. Most of the truck owners I know are very good cooks, but there is that, too–you have to have to have exceptional food.

I am a trained chef, but before that I was front of the house for many years. I think that you must have a way with people–gift of gab sure has helped me.

Teri Fermo of Bohemia: Moveable Feast Caterers in Tulsa, Oklahoma.


1) Low profits – Expenses out weigh sales and cannot pay employees and suppliers
2) Infrastructure – Food truck cannot handle volume, equipment is bad and breaks down, commissary is not good and expensive suppliers.
3) Menu – Food is not what customers want, takes too long to prepare and is too expensive,
4) Service – Employees are rude to customers, too long to deliver food to customers, bad customer experiences.
5) Marketing – Food truck is not appealing to customers, not using Social media, no Website and not enough new business contacts.
6) Limitations – Trying to handle too large of events, not bringing enough food or having too much food causing expensive losses, low average ticket and low volume resulting in Low profits.

Mark Hamilton of Mark’s Grill based in Memphis, Tenn.


Read the whole article here and share it with those who are starting out in this industry. Food Truck Insurance isn’t the only thing they need, but it is of course the main way you can help them. Check out our wholesale food truck insurance product below and send in your submission today!



Wholesale Food Truck Insurance Product Highlights:

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Abram Interstate Insurance Services, Inc. is a California wholesale insurance broker (CMGA) that has licensing and expertise to place business in both admitted and non-admitted markets for personal lines insurance and commercial lines insurance in California and surrounding areas.

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