Organized Crime

As a food truck, cart, or pop-up operator, booking events and festivals can be a great way to increase visibility, attract new customers, and boost sales. However, many event organizers use tactics that can leave operators in the red, despite their best efforts. In this article, we'll explore the common pitfalls to watch out for and provide tips on how to navigate the complex world of event booking.

The Percentage of Sales Trap

One of the most common practices among event organizers is to ask for a percentage of sales. This may seem like a fair deal, but it can quickly turn into a nightmare for operators. Let's say you invest $1,000 in food costs and the event is a dud, resulting in only $900 in sales. The event organizer still gets their percentage, leaving you with a loss. This is especially problematic if you're not prepared for the possibility of low sales.

To avoid this trap, it's essential to do your math and build the estimated percentage of sales into your overhead costs. Calculate your projected profit and loss projections, taking into account the percentage of sales the event organizer is asking for. This will give you a clear understanding of your potential earnings and help you make an informed decision about whether to participate in the event.

Flat Fees: A Better Option?

Some event organizers may offer a flat fee instead of a percentage of sales. While this may seem like a more straightforward deal, it's crucial to factor the fee into your overhead costs. Make sure you understand what the fee covers and what amenities are included. Ask questions like:

• Is the fee inclusive of power, water, and ice?
• Are there any additional costs for permits, licenses, or equipment rentals?
• Are there any restrictions on the types of products you can sell?

By understanding the terms of the flat fee, you can build it into your pricing strategy and ensure you're not losing money.

Over-promising and Under-delivering

Event organizers often over-promise on amenities, attendance, and sales. They may promise access to power, water, and ice, only to leave you scrambling to find alternative solutions. They may claim to expect 4,000 attendees, only to have 200 show up. This can be devastating for operators who have invested time, money, and resources into preparing for the event.

To mitigate this risk, ask for:

• Current ticket sales numbers to gauge interest in the event
• Attendance numbers from previous years to understand the event's track record
• Weather forecasts to anticipate potential weather-related issues

The Overbooking Epidemic

One of the biggest problems facing food truck, cart, and pop-up operators is overbooking. Event organizers often get greedy, justifying the overbooking by claiming they want to offer patrons a variety of options. In reality, they're looking to maximize their income streams, whether it's through flat fees or percentages of sales.

To avoid getting caught in the overbooking trap, ask the event organizer:

• How many vendors will be participating in the event?
• What types of vendors will be present (e.g., food, drinks, merchandise)?
• Are there any restrictions on the types of products you can sell?

By understanding the event's layout and vendor mix, you can make an informed decision about whether to participate.

Conclusion

Booking events and festivals can be a great way to grow your food truck, cart, or pop-up business, but it's essential to be aware of the potential pitfalls. By doing your math, understanding the terms of the agreement, and asking the right questions, you can navigate the complex world of event booking and come out on top. Remember to:

• Build the percentage of sales into your overhead costs
• Factor flat fees into your pricing strategy
• Ask for current ticket sales numbers, attendance numbers from previous years, and weather forecasts
• Be cautious of overbooking and understand the event's layout and vendor mix

By being prepared and doing your due diligence, you can avoid the hidden dangers of event booking and focus on what matters most – serving delicious food to happy customers.

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