How To Start A Beer Truck Business?
Beer is by far the most common alcoholic beverage in the United States. Recent data shows that Americans drink a total of 2.87 million 2.25-gallon cases, which translates to about 24.2 gallons per capita. We drink A LOT of beer, but some states consume a lot more than others. Beer is very popular in North Dakota, New Hampshire, and Montana (all three states drink 40 gallons per person per year), while not so popular in Utah and Connecticut (around 20 gallons per person per year).
Follow us on Instagram!
How To Start A Beer Truck Business?
One thing’s certain – Americans love their beer, no matter where they live (Utah – get those numbers up!). Americans drink beer at home, in bars, at beer fests, restaurants, hiking, and watching sports, and even on TV. Beer is everywhere – so why shouldn’t it be mobile? A beer truck business gets the beer in front of consumers as soon as possible. Interested? Here’s how to start a beer truck business:
Know The Beer You Sell
This is important no matter what business you start – YES, you have to know the product you sell inside out. And beers come in a variety of types, colors, sizes, nutrition facts, and so on. In fact, beer is one of the most diverse alcoholic beverages you can find, mainly because it’s easy to make, it’s been around for thousands of years, and everyone wants it!
Knowing the beer means you have to know the basic beer types. Of course, you must know what beer is, how it differs from ale, what is a lager, a stout, an IPA, and so on. If you don’t know what a stout is or how an IPA should taste, you are in trouble, even before getting inside your beer truck.
Don’t worry – the internet is filled with information about beers from all over the world. Every brewing company has its own website; there are numerous blogs about beer and multiple forums where you can ask questions. Books are also available on numerous brewing topics.
Getting The Best Beer
This will require some legwork, particularly if you want to sell local beer. You’ll have to visit local breweries, craft brewers, test their product, and decide which is better for your brand. You must understand beer, the jargon in the industry, and how it blends into your brand. This is important when customers ask you about the beer you sell – and they will ask you. You just can’t answer “I don’t know”.
On the other hand, if you want to sell commercial beer, find a local distributor and choose the beer that suits your brand or image. There are numerous beer distributors that can offer you hundreds of types of beer. You just have to do the online legwork and contact them.
Know And Understand Your Market
You already know the product; now it’s time to know the market. It’s a critical component of knowing how to start a beer truck business. Your target audience will actually buy the beer you sell, and they are the first ones that will interact with your beer truck. It’s the backbone of your business, and understanding your audience will make or break your business.
Your audience is not “just beer drinkers” – they are your customers who want to drink a good beer, explore the beer, and ask questions about it.
Here are some of the questions to focus on when doing market research:
- What are my customers doing for work?
- What do they do after work for fun?
- Where do they live?
- Are they married? Single? Do they have kids?
- What beers or other alcoholic beverages do they drink?
Try to answer these questions in a meaningful way to understand your potential customers better. Create an online quiz to get more answers, a social media group, or ask around in your local bar. Get at least 100 answers to create a better profile of your audience.
Know Your Competition
This is where you get a little lucky. Fortunately, beer trucks are rare, especially in smaller cities. Please pay attention to other mobile bars, as some people call them. What are they selling? Where are they selling the beer? Who are they selling to? What are the prices? What type of truck do they use? Also, pay attention to their online presence – what are they posting? What are they talking about? How are they interacting with their customers?
Get an alcohol permit or license
This step is critical if you want to sell alcohol legally in most jurisdictions. The license will let you serve alcoholic beverages to your customers. You’ll also need to have a brand name or an established company under which you will do business (the business name has to appear on the license).
Focus on the Business Basics
Running a beer truck business is similar to any other business. You’ll have to make some basic financial projections based on your investments, expenses, and future estimates. You must determine the amount of money you want to invest (and where the money comes from), the ROIs you can expect, the expenses, and any other costs associated with the business. Also, include insurance in your business plan, overhead costs, as well as specialized licensing and permits costs (some jurisdictions may ask for more permits for mobile businesses).
Buy the Equipment
This is where the sky’s the limit. Ideally, you should get the best equipment you can find, but that will get very expensive very quickly. Take out a loan, if possible, to get more bang for your buck. Get a good truck, but set aside some money for improvements and reconditioning. Get specialized taps and canisters and refrigerating units. The more stuff you add, the better it will be.
Buy the Beer
You can either go local or go to commercial distributors, it’s your choice. No matter what you choose, make sure you have a variety of beer types, so every customer can enjoy the experience. Also, consider offering additional products, like crackers, chips, and peanuts.
Find Customers and Locations
Start finding beer festivals to go to and be more visible. Get a good location so more customers see your beer truck. Promote your business online, get social media ads, and be as active as possible in the local community.
Running your own beer truck business can be a very fulfilling experience. You can get a lot of positive experiences and create a brand of your own by selling good beer to consumers. You only have to get it right and know how to start a beer truck business. Good luck!
I am a young architect with a passion that goes beyond blueprints… it’s beer! undertherosebrewing.com is more than just a blog, it’s a manifestation of my lifelong dream to explore, read, and learn everything about beer. Join the blog on this unfiltered and genuine adventure into the heart of beer culture. Cheers!