What Businesses Can Learn From the Taco Truck
We have an interesting thing here in Colorado - the taco truck.
Literally a box truck outfitted to be a mobile taco kitchen.
These restaurants on wheels drive to local business and offer their employees hot, fresh and delicious Mexican offerings right there in the parking lot.
Average price per taco? $1.
00 Move over taco bell.
But what can big business learn from these enchilada entrepreneurs? Specialization.
The taco truck does one thing - make Mexican food.
The owners of these trucks offer the same basic foods and turnover product at a very high rate.
By moving product quickly, not only does the food gain quality due to its freshness, but also allows the price to be driven way down due to the quick turnover and economies of scale.
Lets take a trip back to Econ 101- economies of sale exist as production increases.
For any business that creates a physical product, there are fixed costs.
Electric, rent, physical capitol, all cost whether the production is at 1 or 100.
As more is produced the cost per unit drops.
Companies who can achieve efficiency and produce as much as possible without outgrowing their physical capital can drastically reduce cost per unit.
In this age of global conglomerates, where the corn producer also makes aluminum wheels, perhaps we can stimulate the economy by using specialization.
Focus on one thing, do it VERY well and flip your inventory like tamales.
Not only would this improve quality, but drastically increase employment as many niche businesses would pop up to fill the needs of the economy.
Image the economies of scale of a business that doesn't need to retool- they just make one product line to the best of their ability.
Like the taco truck, this angle could produce some tasty results.
Literally a box truck outfitted to be a mobile taco kitchen.
These restaurants on wheels drive to local business and offer their employees hot, fresh and delicious Mexican offerings right there in the parking lot.
Average price per taco? $1.
00 Move over taco bell.
But what can big business learn from these enchilada entrepreneurs? Specialization.
The taco truck does one thing - make Mexican food.
The owners of these trucks offer the same basic foods and turnover product at a very high rate.
By moving product quickly, not only does the food gain quality due to its freshness, but also allows the price to be driven way down due to the quick turnover and economies of scale.
Lets take a trip back to Econ 101- economies of sale exist as production increases.
For any business that creates a physical product, there are fixed costs.
Electric, rent, physical capitol, all cost whether the production is at 1 or 100.
As more is produced the cost per unit drops.
Companies who can achieve efficiency and produce as much as possible without outgrowing their physical capital can drastically reduce cost per unit.
In this age of global conglomerates, where the corn producer also makes aluminum wheels, perhaps we can stimulate the economy by using specialization.
Focus on one thing, do it VERY well and flip your inventory like tamales.
Not only would this improve quality, but drastically increase employment as many niche businesses would pop up to fill the needs of the economy.
Image the economies of scale of a business that doesn't need to retool- they just make one product line to the best of their ability.
Like the taco truck, this angle could produce some tasty results.
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