Why Food Trucks Should Never Pay Vendor Fees for Events
We are often contacted by festival event organizers, and the most recent inquiry came from one about participating in their upcoming event. They had vendor fees starting at $80, depending on your participation level… whatever that means.
After reviewing the event details, we quickly realized the offering wasn’t what we were looking for.
Why Food Truck Vendor Fees Should Be Avoided
Food trucks are passionate about supporting community events. Whether it's a local festival, charity fundraiser, school sporting event, or neighborhood block party, we love bringing people together and creating memorable experiences.
From corporate gatherings to weddings and non-profit events, food trucks add a unique dining experience that guests appreciate. We’re proud to be part of the vibrant communities from Chattanooga to Knoxville and every town in between, but it’s essential to ensure that the investment in these events makes sense for our business.
Event coordinators need to understand that food truck profit margins are incredibly thin, averaging only about 6% after covering various costs like:
💸 Food Costs
💸 Labor Costs
💸 Fuel
💸 Prep Time
💸 Paper & Packaging
💸 Truck Maintenance
💸 Credit Card Processing
💸 Commissary Rent
While we’re eager to support your event, paying fees without sufficient value in return is a financial risk we simply can’t justify.
The Risk of Paying Food Truck Vendor Fees
If sales are lower than expected, we still have to cover employee wages, food costs, and fuel expenses. It's too risky for us as food truck owners, and it can be financially detrimental to small businesses like ours.
Why Food Truck Vendor Fees Are a Financial Risk
Here’s a question we always ask when we’re presented with vendor fees:
💸 How much does the DJ in Chattanooga pay to be a part of the event?
💸 How much does the band in Knoxville pay?
💸 How much does the porta potty rental company pay?
💸 How much does the jumping castle company in East Tennessee pay?
In most cases, these vendors pay nothing but are typically paid for their services. So why are food trucks being asked to pay a fee to participate?
Event Organizers, Here's a Thought: If You Believe in Your Event, Offer a Sales Guarantee
If you believe your event is going to be a hit, consider offering a sales guarantee to your vendors. By doing so, the risk isn’t placed solely on the food truck owners. It allows food trucks to invest their time, resources, and effort without worrying about whether or not the event will generate the expected crowd or sales. A sales guarantee can provide a fair balance, ensuring both the event organizers and the food truck owners have a stake in making the event a success.
Food Truck Owners: Know Your Numbers
As food truck owners, we must know our numbers. Without a clear understanding of our business’s finances, we could be losing money every time we participate in an event that doesn’t guarantee sales or provide adequate support. It’s far too easy to say “yes” because we care and want to help, but we need to make sure we’re taken care of first.
If you’re asked to pay a vendor fee, evaluate whether the event provides any services that directly assist your truck. If the event does offer things like trash removal, water, or electricity, those fees might be reasonable. But they need to make sense for your business.
When Do Food Truck Vendor Fees Make Sense?
When considering whether to pay a vendor fee, it's important to evaluate the event’s overall value. Corporate events, wedding receptions, and private events typically don’t charge vendor fees. These events usually focus on providing a meaningful experience and don’t require fees for participation.
However, public events like festivals in Chattanooga, TN or car shows in Chattanooga, TN often charge vendor fees. For these events, food trucks should carefully assess whether the event provides enough value in return, such as guaranteed attendance or a proven succuss record with their promotional efforts, before committing to any vendor fees.
If you find yourself in a position of profitability, then by all means, consider giving back—just make sure you’re not compromising your own financial health in the process.
Tips for Event Organizers
If you are organizing a Festivals in Chattanooga, car show in Knoxville, rodeo, art fair, or other public events, make sure to take the time to evaluate the event’s true value for food trucks. If you believe your event is going to be well-attended, provide a sales guarantee. If that’s not possible, consider providing perks that offer food trucks a real opportunity to succeed, like providing access to high-traffic areas, offering advertising or other promotional opportunities, or guaranteeing a certain level of attendance.
Final Thoughts
Food trucks are a valuable part of any event, bringing a unique experience and creating lasting memories for attendees. However, it’s essential that event organizers understand the financial risks food trucks take when asked to pay vendor fees.
Public event organizers, often rely on food trucks to draw a crowd to their festival, car show, art exhibit or rodeo, making the event more appealing. Food trucks can be a major factor in attracting attendees, as people often seek unique dining options.
If you want to attract the best food trucks for your event, consider offering a sales guarantee and also ensuring that your event provides adequate support. By doing so, both food trucks and event organizers can share in the success and make the event a memorable one for all involved.
As food truck owners, we’re passionate about serving the community. We want to be part of your event, but we can’t afford to take risks without any guarantees. It’s essential for event organizers to understand the financial risks and offer fair terms for everyone!
Event organizers should always keep food truck owners' needs in mind and provide the support necessary to make events successful for everyone involved. A win-win scenario benefits not just for the event organization but also the food truck owners, and your guests attending, who get to enjoy a distinctive and exciting dining experience at your event.
If you're planning an event and want to offer something special for your guests, A Wheely Good Food Truck can elevate the experience with our delicious dining options. Take a look at our menu to explore the variety of flavorful dishes we offer, perfect for any occasion, from corporate gatherings to private events. We take pride in delivering high-quality food that your guests will love.
For more information on how we can bring our food truck experience to your event, check out our catering services page. Whether it’s a wedding, school fundraiser, or local event, we’re here to make your gathering unforgettable.
Ready to get started? Contact us today to discuss how we can collaborate and make your next event stand out with amazing food and a distinctive dining experience!
Did you enjoy this article? Check out some of our other blog posts for more insights and tips on food trucks, catering, and event planning.
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