Setting Fair Charges for Food Truck Operators at Annual Events

As the General Manager of Matilda’s 40 Food Trucks, which we recently sold to Spotless Catering in Melbourne, I have had the experience of tendering for several outside catering events. These events ranged from providing canteens for the construction workforce at the Sydney Olympics and the Sydney Casino to catering for the Bankstown Sydney Air Show. All these events were successful for both Matilda’s and the food truck operators.

Negotiating a Fixed Fee

My advice is to negotiate a fixed fee for food truck operators to set up and sell food at your event. This approach simplifies the process for both parties involved as it eliminates the need to verify turnover or entertain concerns over weather or other factors that might affect attendance and performance. By agreeing to a fixed fee, you allow the caterer to more easily allocate their budget, ensuring that their operation is well-planned.

Food services, especially food trucks, often operate on thin profit margins. Therefore, the turnover is crucial for making a profit. When determining the fixed fee, it is important to consider the specific event and the food truck operator’s ability to generate revenue from it.

For example, the type of event drives the type of food and the quality required. In the summertime, light and cold foods and beverages are more suitable, while in winter, hot foods and drinks are more appropriate. This also affects the margins and profit potential. The day of the week and the duration of the service, especially during weekends, also play a significant role. Additionally, whether the event is daytime or nighttime can impact the operator's pricing and profitability.

Community Commitment and Operator Service

While negotiating a fair fee is important, your community commitment should factor into your decision. A good food truck operator is someone who is willing to 'bust open the books' and work with you to find a reasonable arrangement. If your fee is too high, the operator may have to raise their prices and potentially blame you, questioning your community commitment. This could harm your reputation in the local area.

Ensure that the food truck operator provides good service by offering a decent wage and a wide range of food options. Cutting costs too drastically may reduce attendance and negatively impact future events. Good customer service is key to maintaining a positive relationship with the food truck operator and ensuring a successful event.

Summary and Customer Satisfaction Survey

In conclusion, my advice is to negotiate a hands-off fee and minimize your involvement to a customer satisfaction survey. While it is essential to get good service, it is equally important not to overcharge and risk alienating the food truck operator. A fixed fee ensures that both parties have a clear understanding of the expectations and can focus on delivering a memorable event for your attendees.

Proper planning and fair negotiations can lead to successful and memorable events for your attendees, while also ensuring that the food truck operators can operate profitably and deliver excellent service.