Because of the on-the-go nature of the food truck business, there was a time when cash was the only acceptable method of payment for food truck proprietors. But thanks to mobile technology, accepting credit card payments is a simple, cost-effective way to increase a food truck’s business.
As the owner/operator of a food truck, you already know that you face stiff competition and, often times, margins that are uncomfortably thin. That's why it's best to make your food as easy to obtain as it is delicious. Accepting credit cards is a great start.
Modern Technology to the Rescue
Doug Povich, co-owner and operator of the Red Hook Lobster Pound Truck, found that credit card acceptance was key to increasing his food truck’s business. He explained to BizTech Magazine:
"We figured that given our price point, we were going to have to accept credit cards from the beginning," Povich says.
"The first challenge was apparent the first day, when we opened at Farragut Square in D.C. and had probably 300 people in line waiting for us. It took about two and a half hours to serve all those people, and we were just shocked by the huge demand for this stuff," Povich says. "So we had to ramp up much more quickly than we had anticipated."
Povlich's truck sells seafood, including lobster rolls that cost $15 each. At this price, customers are less likely to have cash on-hand. Without a mobile payment solution, his food truck could have missed out on about half of its business, which is the amount of customers that Povich estimates use credit cards.
A Mobile Payment Solution
Povlich also noted that a typical POS system was not user-friendly for a food truck operation, which also influenced his decision to adopt a mobile solution. Popular mobile credit card processing systems have major benefits over cash or traditional POS systems for food trucks. They are commonly controlled by a tablet or smartphone, providing mobility, constant connectivity, and ease of use, and will even process transactions whether or not the customer’s credit card is present.
A Growing Trend
According to Walt Rivenbark, AT&T's Vice President of Mobile Applications for SMB Markets, mobile device usage among businesses like food trucks is continuing to increase.
"Just like we've seen this wave of smartphone and tablet adoption, I think now people are starting to ask, what more can I do with this device?" he says. "That's where I think people are really looking for applications and things that can help them run their businesses better."
In fact, mobile-based payment solutions have grown 118% per year on average for the last five years. That trend shows no sign of slowing down.
The evolution of mobile payment solutions has occurred without much fanfare, so there's still time to gain a competitive advantage by accepting credit cards. This small investment will help you increase your food truck’s business by reaching a larger customer-base and making it easier for your customers to do business with you.
