Are you trying to plan an event and a food truck is asking for a "minimum guarantee"? Don't worry if you don't know what that means! We can help explain. Here is how a minimum guarantee works:
Say you want a food truck to come out to your event and you are expecting 200 people. If the food truck is asking for, say, an $800 minimum and your guests spend $900, then you've met your guarantee and the truck has met its sales minimum for the day. If the truck sells, $750 worth of food, however, then you would be responsible for making up the $50 difference.
The reason why minimum guarantees are important is because it protects the food truck from losing money on events. Between gas, propane, labor, insurance and food prepped ahead, the moment a food truck leaves its lot, it's already spent a lot of money to be at your event. It's actually a good sign when a truck asks for a minimum because they tend to be more experienced.
If you're wondering whether you can meet a truck's minimum, these questions might help:
1) How many people do you expect at your event (e.g. last year you had 400 attendees or there are 600 students at your school)? We recommend booking so that at least 60-100 people eat at each truck.
2) Will there be other food options? If there are other food options available, such as a low-cost bake sale, free drinks, etc., that will also affect the sales for the food trucks.
While it can be tempting to want to book extra trucks, it's often a great idea to book an ideal number of trucks serving cuisine that your guests will love. The trucks will feel great about coming to your event and if it's a successful event, word will travel and you will have an easier time booking the best trucks in town!